Netflix vs. Blockbuster

Topics: Renting, Rental shop, Commerce Pages: 3 (818 words) Published: April 13, 2012
4. Do you think Blockbuster will succeed in the future? Explain your answer. I do not feel that Blockbuster will succeed in the future if they continue following their new business model. First, they lost so much money with their “No More Late Fees” campaign, and if they continue this, they cannot succeed because of all the lost revenue. Also, with the Netflix lawsuit, they will lose not only money for lawyer’s fees and such, but also their patent rights to the business model. This costs more money and gives the public the image that Blockbuster steals other business’s ideas. Lastly, while the online service works for Netflix, it has not worked for Blockbuster. They are still losing money, more than predicted actually, and they have no where near the amount of subscribers that Netflix has. I think the only way Blockbuster can save itself in this dying industry would be to either buy out Netflix or merge with them and hope for the best. Posted by Michelle Scott at 1:19 PM 0 comments

3. Is Blockbuster developing successful solutions to its problems? Are there other solutions it should have considered? Blockbuster is not developing successful solutions to the problem. First, every member of the board is saying something different. Carl Ichan is saying they should dump the online service and stick with brick and mortar. John Polizzi, the CIO, is saying they should wait it out and keep trying, and the CEO John Antico is saying that online service is the only segment open for growth. Also, the late fee campaign was not a good idea and not properly planned or implemented. The so called “solution” really hurt them more than it helped. Other solutions Blockbuster should have considered is either buying out or merging with Netflix. If they owned Netflix, they could both keep their own names and original business models, but Blockbuster could have profited from it. If Blockbuster bought out this competition early on, they would not be having such problems today.

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