Evolving Strategies for Blockbuster: Lessons in Adapting to Industry Disruption

Blockbuster's failure to adapt to industry disruptions serves as a cautionary tale for businesses. This case study explores the challenges faced by Blockbuster, analyzes its key issues, and provides recommendations for adapting to changing consumer behaviors and technological trends.

• Blockbuster
• Industry Disruption
• Adaptation
• Consumer Behavior
• Technology Trends

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1. BLOCKBUSTER: DISRUPTED OR Asper Consulting Group Emily Sanders Matt Borgford Tanis Brako Carlos Kan DISRUPTOR?

2. WHY BLOCKBUSTER? Blockbuster is a great example of a company that did not adapt to disruption in their industry, eventually becoming obsolete. Introduction Analysis Alternatives Critique Recommendation

3. KEY ISSUE How should Blockbuster react to disruptors in their industry? Introduction Analysis Alternatives Critique Recommendation

4. RECOMMENDATION Acquire Netflix to adapt to changing consumer and technological trends Introduction Analysis Alternatives Critique Recommendation

5. WHO IS BLOCKBUSTER? Video rental service Sell complementary products Has subscriptions for repeat movie watchers Blockbuster is in the business of providing an experience to it s customers Introduction Analysis Alternatives Critique Recommendation

6. VALUE PROPOSITION To entertain and delight customers with a wide variety of available options. Introduction Analysis Alternatives Critique Recommendation

7. CORE COMPETENCIES Physical Stores Store Operations Great Movie Selection In-Store Experience Introduction Analysis Alternatives Critique Recommendation

8. THE CONSUMER All Ages Adapt to trends Current Looking for entertainment Value Experience Introduction Analysis Alternatives Critique Recommendation

9. THE CONSUMER All Ages Adapt to trends Current Adoption to technology Looking for entertainment Value Experience Blockbuster did not adapt to the customers changing needs and eventually went bankrupt Introduction Analysis Alternatives Critique Recommendation

10. WHO IS NETFLIX? Started as mail order subscription Went direct to consumer New Technology Leveraged online streaming Created Standalone rental boxes Located in high traffic areas Netflix was adaptive in it s model to reach consumers Introduction Analysis Alternatives Critique Recommendation

11. NETFLIX TIMELINE Mail Order Subscription Created standalone rental boxes Approach Blockbuster Started Online Streaming Adapted to consumer trends Introduction Analysis Alternatives Critique Recommendation

12. NETFLIX TIMELINE Mail Order Subscription Created standalone rental boxes Approach Blockbuster Started Online Streaming Adapted to consumer trends Netflix was better at adapting to consumer trends Introduction Analysis Alternatives Critique Recommendation

13. WHAT SHOULD BLOCKBUSTER HAVE DONE? Introduction Analysis Alternatives Critique Recommendation

14. ALTERNATIVES Develop streaming platform Status Quo Acquire Netflix Stay the course and ignore the disruptor Ex: What happened Build an online streaming platform Ex: Blockbuster Online Acquire an existing online streaming company Ex: Acquire Netflix Introduction Analysis Alternatives Critique Recommendation

15. ALTERNATIVE 1 Pro Con Status Quo Stay true to course and ignore the disruptor. Introduction Analysis Alternatives Critique Recommendation

16. ALTERNATIVE 2 Pro Con Develop streaming platform Build an online streaming platform. Ex: Blockbuster online Introduction Analysis Alternatives Critique Recommendation

17. ALTERNATIVE 3 Pro Con Acquire Netflix Acquire existing online streaming company. Introduction Analysis Alternatives Critique Recommendation

18. DECISION CRITERIA Stay true to your value proposition Value Proposition Adapt to changing consumer and technological trends Core Play to your strengths Adaptability Competency Financial Health Ensure profitability and growth Introduction Analysis Alternatives Critique Recommendation

19. ADAPTABILITY Develop Streaming Platform Status Quo Acquire Netflix Improves consumer experience Improves consumer experience Does not meet consumer trends Not adaptable to technology changes Meets changing consumer trends Meets changing consumer trends Introduction Analysis Alternatives Critique Recommendation

20. ADAPTABILITY Develop Streaming Platform Status Quo Acquire Netflix Improves consumer experience Improves consumer experience Does not meet consumer trends Not adaptable to technology changes Meets changing consumer trends Meets changing consumer trends Introduction Analysis Alternatives Critique Recommendation

21. VALUE PROPOSITION To entertain and delight customers with a wide variety of available options. Develop Online Streaming Platform Meets Meets Status Quo Meets Acquire Netflix Introduction Analysis Alternatives Critique Recommendation

22. CORE COMPETENCY Physical Stores Store Operations Great Movie Selection In-Store Experience Develop Online Streaming Platform Does not meet Meets Status Quo Meets Acquire Netflix Introduction Analysis Alternatives Critique Recommendation

23. STATUS QUO: FINANCIAL HEALTH 1200 Revenue Profitability 25% 20% 20% 1000 15% 15.00% 800 10% 8.00% 5% 600 0% 0.00% 400 -5% -10% 200 -15% -15.00% 0 -20% 1 2 3 4 5 Introduction Analysis Alternatives Critique Recommendation

24. DEVELOP ONLINE STREAMING: FINANCIAL HEALTH Revenue Profitability 1200 25% 1000 20% 800 15% 600 10% 400 5% 200 0 0% 1 2 3 4 5 Introduction Analysis Alternatives Critique Recommendation

25. ACQUIRE NETFLIX: FINANCIAL HEALTH 2500 30% Revenue Profitability 25% 25.00% 2000 21.00% 20% 20% 1500 18.00% 18.00% 15% 1000 10% 500 5% 0 0% 1 2 3 4 5 Introduction Analysis Alternatives Critique Recommendation

26. RISK OF EACH ALTERNATIVES Develop streaming platform Status Quo Acquire Netflix Lack of innovation to improve customer experience Slow growth and reduction of market share to competition Capital intensive for acquisition and integration of platforms Introduction Analysis Alternatives Critique Recommendation

27. RECOMMENDATION Status Quo what they did Develop streaming platform i.e. Blockbuster online Acquire Streaming cia. i.e. Netflix Value Proposition Core Competencies Financial health Adaptability Introduction Analysis Alternatives Critique Recommendation

28. RECOMMENDATION Acquire Netflix to adapt to changing consumer and technological trends Introduction Analysis Alternatives Critique Recommendation

29. APPENDICE

30. CUSTOMER BASE Status Quo Develop Online Platform Purchase Netflix 1 2 3 4 5