Blockbuster vs. Netflix Which Will Win Out?

Q2: Block buster was the business leader for movie rentals for a long time until Netflix came up with a new business model and introduced an online Video/DVD rentals for lower cost and no late fees. Netflix was a forerunner (First in business) and rapidly gained ground on movie rental business. Netflix could efficiently reach customers and conveniently deliver movies to their doors with less overhead cost and bigger variety of choices. Putting Blockbuster stores in a tough position to complete. Blockbuster and Wall Mart both tried to complete by following suit but have not been successful. And now with coming of downloadable movies through other “Network providers” and “Apple” competition has become more complex and vital for Blockbuster.

Q4: Netflix has been so far quite successful in its business strategy, compare to ‘mom an pops stores’ and Blockbuster for that matter. However, with rapid improvement of digital technology and movie on demand they may face some challenges and may loose some of their business to newer technology such as offering of downloadable and writable DVDs.
So far Netflix has the brand name recognition, clientele and subscribers that can follow the company with any new method of movie delivery that Netflix can offer. Company just needs to be quick and efficient in offering downloadable movie option, and not to loose much of the market share.

Q5: Chances of succeeding for Blockbuster or Netflix on this business depends on how fast they can capture larger market share with the help of the latest technology, who can offer more options and availability of new releases as well as hard to find movies...
They need to be on top of their ‘technology game’ and invest on new means of delivery as well as movie rental per see. IT plays a great role in their business and their viability depends on how adaptive they are and how creative they are in using information technology to their advantage.