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
Examines the emergence of technologies for delivering video content to consumer homes via direct digital distribution and investigates the strategic options facing video rental giant Blockbuster Inc as it tries to respond to the new technological substitutes. Examines the impact of personal video recorders (or digital video recorders) on the market for Blockbuster's main complementary products, the VCR and DVD player, and explores how this technology might ultimately impact Blockbuster. Addresses the current and future impact of video-on-demand, the latest incarnation of the long enduring pay-per-view technology, and analyzes Blockbuster's potential and actual response to the threat. 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. The teaching purpose is to examine the economic and strategic concepts underlying competition in markets experiencing technological change. To allow students to gain insight into Blockbuster's past substitution decisions and analyze its current decisions.
Location:
Industries:
Size:
USD5.1 billion revenues; 89,100 employees
Other setting(s):
1997-2003
Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 16 April 2004
Length: 15 pages
Data source: Published sources
About
Abstract
Examines the emergence of technologies for delivering video content to consumer homes via direct digital distribution and investigates the strategic options facing video rental giant Blockbuster Inc as it tries to respond to the new technological substitutes. Examines the impact of personal video recorders (or digital video recorders) on the market for Blockbuster's main complementary products, the VCR and DVD player, and explores how this technology might ultimately impact Blockbuster. Addresses the current and future impact of video-on-demand, the latest incarnation of the long enduring pay-per-view technology, and analyzes Blockbuster's potential and actual response to the threat. 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. The teaching purpose is to examine the economic and strategic concepts underlying competition in markets experiencing technological change. To allow students to gain insight into Blockbuster's past substitution decisions and analyze its current decisions.
Settings
Location:
Industries:
Size:
USD5.1 billion revenues; 89,100 employees
Other setting(s):
1997-2003
Related
Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 16 April 2004
Length: 15 pages
Data source: Published sources