Analysis of Blockbuster Video

After reading the interview with Charlie Rose 's Jim Collins, Collins explained about his recent book "Strong Fall". But that does not exist. In this article, we will link Blockbuster Video and its history to review, analysis, and five phases of the organization of Jim Collins. The first stage: The birth of Hubris In 1985, Blockbuster opened its first store in Dallas, Texas. After the first few stores opened, founder David Cook built a $ 6 million warehouse to draw and pack multiple stores in one day.

From the beginning, Blockbuster insisted on a major business model - to borrow video at its physical store at a fixed price for each video. At one time, Blockbuster peaked in more than 9,000 stores in 2004 (New York Times). As online streaming becomes more and more popular, this competitive advantage has become one of the main reasons for the collapse of Blockbuster. Netflix is ​​the main competitor behind the collapse of Blockbuster. Netflix offers unlimited movies at low cost each month. Ironically, Blockbuster CEO John Antioco got the opportunity to acquire Netflix (Business Insider) for $ 50 million in 2000. John thought that it was a small niche business so the contract was not established. Today, the market capitalization of Netflix exceeds 50 billion dollars.

Let's think about two companies, Blockbuster Video and NETFLIX. Super epic cast is the backbone of the baby-boomer generation. The unstoppable catch of throat of family entertainment seems to be the first person to fall into a millennia scourge. Netflix suddenly entered the leasing company all night and seems to have destroyed. Is this a reasonable marketing strategy? Will the advertising budget increase? More obvious product placement? Netflix has forwarded this message. Baishida said: "It accepts and accepts it!" Netflix said: "No, thank you, we will not be hated." Netflix itself is in a different business from those who provide services There is none. There are services that meet your needs. This seems to be a small difference, but it is not.

Netflix's business model and vision in the movie rental industry is quite different from competitor Blockbuster. On the other hand, Retail Video Rental Chain Block Buster John Antioco thinks video rental is a more voluntary process, and it is the customer waiting for the date of DVD mail to see them as soon as they receive the copy at the store It is because I care. Netflix is ​​losing money with this new rental program. Reed Hastings met with John Antioco, CEO of Dallas 'Blockbuster, sold 49% of Netflix' s 49 million shares to Blockbuster in exchange for Blockbuster's online DVD brand Blockbuster.com, and Blockbuster's offline DVD rental business Complemented. But Blockbuster approved the contract and Netflix, which had no profit at the time, thought that it would not add value to the business.