Netflix vs. Blockbuster
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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