blockbuster vs netflix

blockbuster vs netflix - Blockbuster versus Netflix...

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Blockbuster versus Netflix Blockbuster has been by far the most prestigious video rental company in the United States . Blockbuster appeals to a wide variety of customers and has a huge customer base . However with the expansion of technology any great business can be threatened by an emerging competitor with a more convenient business model . Blockbuster is founded on a method of convenience for its customers by allowing them to see movies without actually purchasing them . Netflix emerged with an even more advantageous business model by allowing customers to order movies online and have them mailed directly to their homes . Netflix simplified the process of renting a movie by enabling customers to stay in the comfort of their homes while renting movies online . Blockbuster is suddenly faced with a very worthy adversary and it must adapt to this new competition in order to survive as a company . Blockbuster has many choices on how to respond to Netflix . Blockbuster can take Netflix head on and create their own online rental service, or they can redesign its traditional business in an attempt to lure customers away from online rentals . The most logical and quickest way to respond to the competition would be to do both . Blockbusters first answer to the rising competition was to create an online rental service: Movie Pass and Game Pass . Blockbusters entrance into the market of online rentals gave Netflix a seemingly overwhelming amount of competition . Since Blockbuster is a more reliable company and has retail stores nationwide, they are initially a more appealing alternative to Netflix in the online rental market . The online subscription service is not the only change blockbuster made; it also added a “No More Late Fees” feature . This eliminated one of the most unappealing aspects to using blockbuster's retail stores and would draw more customers away from the online
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This note was uploaded on 04/29/2008 for the course BUS 205 taught by Professor Metcalf during the Spring '08 term at Reinhardt.

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blockbuster vs netflix - Blockbuster versus Netflix...

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