Blockbuster

As I was reading your discussion it made me think of Blockbuster. At one point in time that organization was the king of the movie rental industry. In fact, it can easily be argued that had they made organizational changes the firm would still be a relevant company. However due to their unwillingness to learn new behavior or adapt to change Blockbuster actually allowed companies like NetFlix to enter the digital market space with a major competitive advantage. Netflixe’s major advantage was that Blockbuster wasn’t their. Blockbuster was unwilling to learn or adapt to changes in their industries environment. For many years renting physical media was a sound business model however as times changed so did technology. NetFlix was once a much smaller company in comparison to Blockbuster however they were able to make the necessary organizational changes to position their firm in a place where they would operate on a digital platform distributing content through streaming. If you are unaware NetFlix actually started out by mailing its customer physical media. However the firm was able to foresee the future and focused building their organization around the digital content. Blockbuster on the other hand was stuck in the past and unable to move away from a stagnant business model and as a result the firm no longer exists. However it should be noted that Blockbuster had every opportunity to make changes although unfortunately didn’t do it. It makes me wonder if Blockbuster invested heavily into digital content if NetFlix would be the same company that it is today. I would argue that NetFlix would still be relevant but Blockbust would have remained king if they made the necessary organizational changes.

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