CIS 66 -Management Information Systems - Group Work #2

CIS 66 -Management Information Systems - Group Work #2 -...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
4/3/12 11:28 PM CIS 66 -Management Information Systems - Group Work #2 Page 1 of 7 http://www.santarosa.edu/~ssarkar/cs66fl08/gw/gw2s.htm Group Work #2 SOLUTION - Case Study pgs.121-123 (due September 13, 2008) Solution: 1. What is Blockbuster ʼ s business model? How successful has it been? Blockbuster is pursuing a two- pronged business model. There model is a combination of low-cost leadership and customer and supplier intimacy strategy. The company is trying to change their traditional business model in the face of the new and rising popularity of the online rental services being offered by Netflix and others. They continue to focus on their traditional brick-and-mortar business in the hopes of luring customers back from the rising online tide, while at the same time they have also launched an online rental store similar to Netflix. Blockbuster constructed their new online business model within their existing operations. Rather than meld the traditional stores with the new online rental model, they created a new online division with its own offices near corporate headquarters in Dallas. They have been successful in the sense that they
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4/3/12 11:28 PM CIS 66 -Management Information Systems - Group Work #2 Page 2 of 7 http://www.santarosa.edu/~ssarkar/cs66fl08/gw/gw2s.htm the sense that they increased their product offerings and attracted new customers. However, at the same time they have lost massive profit margins due to the costs associated with the online service and have experienced customer dissatisfaction due to their “No More Late Fees” campaign. Blockbuster has invested millions in new Internet sites and technologies to compete with Netflix, the mail order video champion. But Blockbuster has refused to give up its physical distribution business model and maintains thousands of stores around the country may result in their total inability to compete against firms such as Netflix, Apple, and Amazon.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern