1985 — In the midst of a sharp downturn in the oil and gas industry, David Cook developed a software to manage their database. He then, re-used this model for the video industry and started Blockbuster Inc. This is a good example of a sucessful Executive-How perspective (depicted as Green in the Figure3, Blockbuster during its peak)because David Cook was able to identify a successful business strategy and use it to improve the video-rental business by including the concept of computers and databases. 1987 — Blockbuster was sold to a trio of investors, including Waste Management Inc. founder Wayne Huizenga, for $18.5 million.This is a good example of a successful Executive-Who perspective (depicted in Green in the Figure3, Blockbuster during its peak) because the three investors from Waste Management Inc. took Blockbuster to its peak by expanding the stores and strong management. 1992 — Blockbuster was the undisputed video rental leader, with over 2,800 stores worldwide. The company’s growth was driven by acquisitions of other retailers such as Britain’s Ritz, US chains Major Video and Erol’s Video.This was a good example ofsuccessful Where-perspectives (depicted in Green in the Figure 3, Blockbuster during its peak)because they improved the firm's reach and hence improved accessibility to its customers.
17 1994 — Viacom buys Blockbuster for $8.4 billion.This is an example of a bad Executive-Who perspective(depicted as Red in the Figure 3, Blockbuster during its decline) since the business idea of selling Blockbuster to Viacom marked the start of its decline. 1997 — Silicon Valley veteran Reed Hastings found Netflix, partly out of frustration after being fined $40 by Blockbuster for being late in returning “Apollo 13.”This is an example of a bad Executive-Who perspective(depicted in Red in the Figure3, Blockbuster during its decline) since declining the offer from Netflix wasa bad decision taken by the executives. Blockbuster executives and business management teams were unable to assess the potential of online video streaming. Also, Netflix soon rose to big heights and became a major competitor to Blockbuster. 1999 — Viacom takes Blockbuster public, retaining its stake in the firm in order to take advantage of its steady cash flow through other than video distribution channels.This is an example of a bad Executive-Why perspective(depicted as Red in Figure3, Blockbuster during its declin)e since they were going away from their actual mission and loosing focus. 2000 — Blockbuster collect almost $800 million in late fees, which accounts for roughly 16% of its revenue, according to the Associated Press.This is an example of a bad Business Management-How perspective(depicted as Red in the Figure 3, Blockbuster during its decline).They were so dependent on the concept of late fees, that they did not forsee it to become one of the major reasons for its demise.