Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 16 April 2004
Length: 15 pages
Data source: Published sources
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Abstract
Investigates how the rise of the Internet as a vehicle for renting and buying movies has disrupted the video rental industry and how market leader Blockbuster Inc. can and should respond to these developments. Explores how the emergence of e-commerce affects the degree to which consumers buy instead of rent low-priced DVDs and how Blockbuster might adjust its online initiatives in response. Details the rise of Internet-enabled substitution threats, such as home delivery services (eg, Kozmo.com) and Internet subscription services (eg, Netflix.com), and investigates the potential options and chosen actions of Blockbuster Inc. as it seeks to maintain its competitive position. In times of technological change, firms continuously face decisions regarding the extent to which they should embrace a technologically advanced substitute at the possible expense of their existing products and services. Guides the reader through Blockbuster's decisions and its resulting responses.
Location:
Industries:
Size:
USD5.1 billion revenues; 89,100 employees
Other setting(s):
1997-2003
About
Abstract
Investigates how the rise of the Internet as a vehicle for renting and buying movies has disrupted the video rental industry and how market leader Blockbuster Inc. can and should respond to these developments. Explores how the emergence of e-commerce affects the degree to which consumers buy instead of rent low-priced DVDs and how Blockbuster might adjust its online initiatives in response. Details the rise of Internet-enabled substitution threats, such as home delivery services (eg, Kozmo.com) and Internet subscription services (eg, Netflix.com), and investigates the potential options and chosen actions of Blockbuster Inc. as it seeks to maintain its competitive position. In times of technological change, firms continuously face decisions regarding the extent to which they should embrace a technologically advanced substitute at the possible expense of their existing products and services. Guides the reader through Blockbuster's decisions and its resulting responses.
Settings
Location:
Industries:
Size:
USD5.1 billion revenues; 89,100 employees
Other setting(s):
1997-2003