If you were driving through almost anywhere in America 15 years ago, you would hard pressed not to be able to find a Blockbuster video store. Now, mostly you might find stores that once had Blockbuster in them. You will need to write a 5 page research paper explaining what Netflix did right and what Blockbuster got wrong. While writing this paper, please use the following questions as a guide:
In its competition with Netflix, where did Blockbuster go wrong? How was the use of customer data a key differentiator? How might Blockbuster have better positioned itself against Netflix?
What are the core competencies of Netflix’s current business model (primarily DVD-by-mail with an online component)? Assess the value of Netflix’s business as described in the case.
What effects will the rise of the VOD market likely have on Netflix’s business model? How does VOD threaten Netflix’s business? What opportunities does it present?
Which of Netflix’s current competencies can it best leverage as a competitive advantage in VOD? Which might be liabilities?
What kind of partnerships should Netflix prioritize: partnerships with content providers or with hardware/device manufacturers?
