Comparative Analysis of Netflix and Blockbuster.docx -...

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Running head: TECHNOLOGICAL DISRUPTION IN NETFLIX AND BLOCKBUSTERiA Comparative Report onthe Effects of Technological DisruptioninChallenger Business over Incumbent Business(The case of Netflix and Blockbuster Entertainment)[STUDENT ID][STUDENT INSTUTUTION]
TECHNOLOGICAL DISRUPTION IN NETFLIX AND BLOCKBUSTERiiContentsIntroduction & Overview:................................................................................................................1Institutional Background:................................................................................................................1Blockbuster Entertainment:..........................................................................................................1Netflix:.........................................................................................................................................2Comparative Technological transformation:...................................................................................2How Blockbuster Lost to Netflix:................................................................................................3Change in Technology:................................................................................................................4Blockbuster Retail Outlets and Operating Cost:..........................................................................4Technological innovation in Netflix:...............................................................................................5The Netflix Effect:.......................................................................................................................6Conclusion:......................................................................................................................................6References:......................................................................................................................................8
NETFLIX AND BLOCKBUSTER ENTERTAINMENT1Introduction & Overview:This report is a comparative analysis of two media companies and their business models.The basis of this report is the induction of technological innovation and disruption in onebusiness firm as a challenger and its comparison with the other as an incumbent one. Thechallenger firm is the famous media house known as Netflix, and the incumbent business modelis US famous video and games rental firm Blockbuster. The basic idea of the report is theanalysis of Netflix's marketing and business innovative model, hinged around technologicaldisruption, keeping in mind the effects of the lack of technological development in theBlockbuster business. Technological disruption in Netflix is not just associated with its sales andlarge customer engagement as compared to blockbuster but is also due to other factors asmarketing aspects and tactics that involve innovative technology (Goldfayn, 2012). Technologyand innovation have played an integral role in the growth and progress of the organizationconcerned as compared to its rival.The business strategy of the Blockbuster firm is based on providing the movies andgames DVDs on a rental basis using their retail branches and outlets. Comparatively, on the otherhand, Netflix, which emerged in 1997, also came out to be a rental company that provided itsrental services of DVDs on the same business design, but after some period, the firm startedselling the video content streaming online. This technological disruption and innovation ofselling, marketing, and reaching a maximum audience online is the focal area of this report thatBlockbuster missed out. Technological innovation is the business strategy that Netflix used topromote its business and operations throughout the globe and now it the leading brand in rentalbusiness across the world (Spangler & Spangler, 2019). The objective of the firm is to providethe opportunity to the public to access TV and movie content through the internet. This practiceof using technology could result in wrapping the DVD businesses of Blockbuster and othercompanies in near future.

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