Blockbuster's Political/Legal Environment

Good Essays
Political and Legal Environment

Blockbuster has had many challenges when it comes to the law. Netflix has always felt Blockbuster has tried to steal many of its ideas. Netflix runs its operations where customers will setup an account, pick the movies they want to watch, and setup a payment plan (Sanders). Since the dawn of Netflix, millions have joined and have enjoyed the benefits of not having to drive to the store to rent movies. Blockbuster has known that Netflix was a rival from the very beginning. Blockbuster enacted a late fee policy a few years prior to Netflix being born. When Netflix enacted the no late fee policy and prepaid shipping labels to and from, business shifted from Blockbuster to Netflix. To rebound against Netflix, Blockbuster began its very own mailing program where its customers would get unlimited rentals and only charge a one time monthly fee. Then Blockbuster began an online service to allow customers to stream movies right to their computers and pick the movies they couldn’t watch online shipped to their house. Netflix filed a lawsuit against Blockbuster for patent infringement (Sanders). There were two patents that Blockbuster copied from Netflix: The first patent which was issued to Netflix in 1999 included the process where customers can pick and choose movies from the convenience of their home (Sanders). The second patent that was copied just this year was where customers would receive one or two movies at a time and not incur any late fees (Sanders). Movies would be exchanged once a movie is returned to the processing plant. Netflix stated in a news brief, “Since we had the forethought to patent its ideas, Blockbuster has no right to use them (Sanders).” Blockbuster commented on this statement saying “it is trying to force it into the red.” Blockbuster feels that Netflix is attempting a monopoly. With more competition against Netflix, profits began to decline. The big question behind all of this comes down to,

You May Also Find These Documents Helpful

  • Good Essays

    Legal and Political Environments The legal and political environments of global markets differ by country and often by region within a country. Global marketers must be aware of each environmental risk in global markets and develop contingency plans to overcome them. Legal Environment Clearly, the global legal environment is very dynamic and complex. It is the result of three forces: international law, U.S. domestic law, and legal requirements of host nations. According to Czinkota and…

    • 461 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    2011-10-03 Definition of a Political System • The complete set of institutions, political organizations, and interest groups, • The relationships among institutions, and the political norms and rules that govern their functions International Business Part Two Comparative Environmental Frameworks Chapter Three The Political and Legal Environments Facing Business 3-2 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Individualism vs. Collectivism Political Ideology • Individualism:…

    • 633 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Legal and political environment • This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. • Sometimes these laws create new opportunities for business. Various associations have been formed in India for automobile industry ➢ ACMA and SIAM are two major automobile association in India. ➢ acma(Automotive Component Manufacturers Association of India ) ➢ siam (Society of Indian Automobile…

    • 706 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Legal, Political/Trade Environment Chapter Objectives Structure Of The Chapter Laws, rules, and standards Issues The political environment The legal environment Terms of access Winds of change Chapter Summary Key Terms Review Questions Review Questions Answers References The legal/political aspect is very important in global marketing. "International law" can be defined as rules and principles that states and nations consider binding upon themselves. This raises two interesting…

    • 7385 Words
    • 24 Pages
    Good Essays
  • Powerful Essays

    The Political-Legal Environment consists of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rights for example, Health and Safety and Consumer Protection. Government regulations are the forces that combat unfair business practices and serve as a guideline to avoid such discrepancies. There are four historical phases the government regulations falls into: • Antimonopoly period of the late 19th and early 20th centuries • Protecting…

    • 1626 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Government and politics The Spain Government is somewhat of a hybrid between a monarchy and a democratic government. There is a King, President, two vice presidents and prime ministers. There are also seventeen autonomous regions in Spain that are closely related to what we call the United States. I believe that the hybrid mix of government acts as somewhat of a backup because the King gets the final say and some decisions made by the other government officials are not binding. I believe that…

    • 845 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    CHAPTER THREE THE POLITICAL AND LEGAL ENVIRONMENTS FACING BUSINESS OBJECTIVES • To discuss the different goals and functions of political systems • To profile trends in the emergence and diffusion of political systems • To identify the idea of political risk and approaches to managing it • To understand how different political and legal systems affect the conduct of business • To profile trends in the evolution and diffusion of legal systems • To examine the major legal issues facing international…

    • 4003 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Political & Legal

    • 4253 Words
    • 12 Pages

    Political and Legal Assignment 2 1. The First Amendment is the freedom of speech, the Fourth Amendment is search and seizure, the Fifth Amendment is fair proceedings, and the Fourteenth Amendment is anti-discrimination. A. The First Amendment grants all the freedom of speech and protects people who do. Items of everyday normality like “table talk” and “tailboard” criticisms are legitimate uses of free speech and regulations against them would not stand up. The display of items on a uniform are…

    • 4253 Words
    • 12 Pages
    Good Essays
  • Good Essays

    Political- legal environment is one of the economic environment that its development has strongly impacts on the marketing decisions of the company. The political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. Each factors of political environment has its own functions and impacts on the economic activities of the industry. The economic systems work best with at least some regulation. When…

    • 675 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Legal Environment

    • 2023 Words
    • 9 Pages

    Legal Environment of SLT Report SU MAN MSc SLT ETU20100211 ESC RENNES 1. The Legal Differences There are approximately 80.000enterprises related to Travel agents and tour operators in Europe with 450,000 employees. Package holiday becomes a popular and convenient travelling form attracting more people. Until 2007, 190 million package holidays have been sold. Meanwhile, 29.000 IATA accredited agency have already settled in travel agency. According to the statistics, there were $1.6 billion…

    • 2023 Words
    • 9 Pages
    Powerful Essays