“Blockbuster Is Fighting for Survival” Bart Sztykowski Management 3025: Principles of Management, Section 791 5/23/2014 1.) How successful do you predict that Blockbuster’s recent moves (agreements with TiVo and major movie studios) will be? Please explain. Blockbuster is simply too late in its courageous attempts to salvage what is left of its foundation. As is stated in the article, the company used to have a major competitive advantage in terms of movie selection, where, “…customers could browse through thousands of titles…” (Hitt 106).
1. Who are the key stakeholders in the Netflix case? Netflix Reed Hasting (CEO of Netflix) Scotts Valley (Founder of Netflix) Marc Randolph (Software developer of Netflix) David Wells (CFO of Netflix) Andy Rendich (CEO of Qwikster) Employees of the Neflix Distributors includes film studios Shareholders Investors Partnership Company Microsoft Xbox 360 Blu-ray, Disc Players Apple Macintosh Customers Subscribers Industry analysts 2. There are several missteps by Netflis in this case. - Misconception of the demand of DVD rental Netflix could not anticipate accurately the demand of the DVD rental. They assumed that unlimited streaming service had more demand than DVD service.
d. Fees that studios charge Netflix for access to the studios’ content. From these four challenges I think that the Netflix‘s development of original programming is the most difficult to address need a lot of effort and a major investment in a completely different direction from sharing video either through DVD rental or online streaming. I think the easiest one would be dealing with the fees because the raising fee can involve an increase in Netflix’s own price structure, which could bring an effect on demand for its distribution services. 2. Each of the four major challenges faced by Netflix relate to the genetic managerial challenges of dealing with globalization, diversity, and ethics, they all link of the challenges that confront Netflix, some of the link are more clear than others.
Thus, if a user wishes to purchase the Nintendo game cartridges (software), he/she will have to purchase the Nintendo hardware. The incompatibility across competing hardware systems and video game software creates and sustains this network effect. The video game industry is also an example of a two-sided market in that the console producer acts as an intermediary between consumers and video game developers. As such, consumer demand depends on video game developers providing a variety of games, and video game developers desire a large user base for which to produce and sell games (without users, producing the game is useless). The industry also has positive network effects in that as the console user base increases, so does the number of video game cartridges sold.
In the past Samsung has been known for problems that I like to call “feature spam” It was very apparent last year with Samsung’s Galaxy S4, Samsung has developed a habit of stuffing as many gimmicky new features as into its flagship device, thinking the features will appeal to customers. While the Galaxy S5 follows the same pattern. However these features aren’t only useful, they’re awesome. Many of these features are very unique as well. The Galaxy S5 features an IR blaster, techie translation “The IR blaster acts as a remote for any TV, set top box, cable provider, etc.” The iPhone can gain these features, not without third party software/hardware combinations.
Briefly describe each of the four major challenges that Netflix faces. Which of these four challenges will be the most difficult to address? Why? Which challenge will be the easiest to address? Why?
In addition, this paper will develop a change strategy that could have been implemented to prevent the business from failing. Failed Business - Blockbuster Objectives, Vision, Mission When Blockbuster was in existence as a chain store its mission according to About.com (2014) was "to provide its customers with the most convenient access to entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, my mail, vending and kiosks, online and at home." The company believed they offered customers an entertainment experience at value prices. Indicators of Failure Back in 1985 Blockbuster was the biggest thing on the market. Everyone was going to the video store for the new releases of all movies.
For the past few years, there has been the advancement in the digital media so Will kept that in mind and developed a technology that he felt would be different than the rest out there. Because he realizes he would be competing with similar technology such as Apple, Google, and Amazon in the same market. Elasticity of the Product
The World Wide Web has opened the door for better entertainment throughout society however the outlandish acts of piracy is a constant experience within the music and movie business. Sites such as Pandora and YouTube provide society with constant entertainment 24/7. Convenience is the name of the game to a society that does not have to go out physically and purchase movies or music. A number of websites exist, which allows consumers to download music, videos, video games, and software without spending a penny. Here rests the problem of piracy.
This is because teenagers have a massive interest in using internet with in their daily lives. Also the method of advertisement that the agency uses will change according to the budget that the business has. Advertising methods are never a fixed and equal price as all other methods this is because advertising on TV will be considerably more than just advertising on a bill board. One example of a well-known advertising agency is Saatchi & Saatchi. This advertising agency has worked with many well-known organisations such as Sony and Toyota.