Blockbuster failed to appropriately assess and respond to the impact of external changes in technology, competition, and market demand. Blockbuster relied on a strong brand name and market presence to carry their business model. However, technological advancements in video file sharing, including piracy, video streaming, and on-demand and instant viewing options from cable companies have nearly eradicated the memory of the Blockbuster way of life. Customers preferred to save their money and used services that relied on better technological advancements. In 2007, Blockbuster’s external threats encompassed a high level of debt, falling revenue, geographic constraints, and strong dependence on the success of the US market (DATAMONITOR, 2007). These statistics show the negative impacts, from a technological standpoint, only nine years after the launch of Netflix who has become Blockbuster’s strongest competitor (Wooldridge et al., 2007).
The failure to assess the market changes in technology provided an easy alternative for customers to shift their loyalty and patronage to companies such as Netflix and Redbox. Blockbuster failed to appropriately support their position as leader in the video rental industry. The opportunity to integrate technological changes was available to Blockbuster prior to the