The relevance
The relevance
Innovation may be a hard concept for some individuals to sell within the organization. Companies have certain ways of conducting business and do not consider new forms of ideas. In the following paragraphs there will be an assessment of the impact of innovation on three types of organizations (Sears, Best Buy, and Wal-Mart) in the home and office entertainment. The impact of strategy, process, product, and services of these organization will also be discussed.…
Within the video entertainment industry, Netflix’s biggest competitor is Blockbuster, as it remained the global leader in the industry in 2010 c-99). However, the firm faces intense competition in the home entertainment industry due to the broad range of technologies and channels of distribution (Appendix B-4). Netflix is in direct competition with cable companies and VOD streaming services such as Wal-Mart’s acquisition of Vudu, which enabled the delivery of entertainment content directly to Internet-connected TVs imposes a threat. The competition is further intensified by the availability of video streaming websites such as Amazon Video-on-Demand, Apple’s iTunes and Hulu. Many of these competitors have greater brand recognition, larger customer bases, and greater financial stabilities and resources (Appendix B-7). The related pricing strategy, quality of experience and service level of its competitors may adversely impact Netflix ability to attract and retain subscribers. Therefore, buyers have a strong level of power and could easily shift their preferences from Netflix to rival companies, thereby imposing a further threat to Netflix’s profitability. Moreover, if excessive numbers of subscribers switch their services to competitors, Netflix may need to incur higher marketing expenditures to attract new subscribers, thus business results may be adversely affected. Currently, Netflix employed a subscription-based business model in which it acquired its video content from movie studios and distributors through direct purchase, revenue-sharing agreements and licensing. Therefore, its suppliers such as Universal Studios,…
It’s so convenient! You’ve just finished your weekly grocery shopping at your local big box store and you’re on your way out the door with a cart full of all the bargains you found and there it is! The big “Red Box” with all the great movies you saw the trailers for on TV just a month or so ago but were too busy (or too broke) to go see at the theater. You sidle up to the touch screen, pick out a couple of titles, and swipe your credit card and Voila! Your DVD’s appear one at a time out of a slot on the side of the magical “Red Box” and you’re out the door and ready for a night of affordable entertainment.…
Netflix has quickly become a household name by saturating the market with a new age way to rent movies. Established in 1998, Netflix geared its business to provide consumers with quick and easy access to their favorite movies without the need to leave their homes. As the business developed and other popular sites, such as YouTube, began to gain popularity Netflix entered the market of streaming online content. During the infancy of their instant service Netflix still relied heavily on mailing DVDs to offer their customers a wider range of movies and TV shows. However, as their steaming library grew the mindset of the company began to shift. As they transitioned away from their mailing movies, key business decisions were made that caused many to question the future of the company. The adaptation of Netflix into the era of instant movie viewing can best be described by analyzing the time period from 2010-2012.…
Blockbuster has 500 stores remaining in 2013 down from a peak of more than 9,000 in 2004. Decision making is the key and the way the final decisions are made is very important. “Blockbuster experienced a…
When considering customers as a whole and viewing from the company’s perspective, we could conclude that the buyers’ bargaining power is relatively high because Netflix revenue is majority customer sales based, customers are not as loyal as before due to better and cheaper ways to watch movies and TV as technology is advancing, and customers have low switching costs.…
Blockbuster is an American-based chain of VHS, DVD, Blu-Ray, and video game rental store that has over 5,000 stores in the U.S. The rise of online rental service providers such as Netflix greatly reduced Blockbuster’s market share. As a result, Blockbuster re-launched its online rental service to remain competitive on the market. Blockbuster faced many risks in the past decade, leading to its sharp demise. The biggest risk that Blockbuster faced was the its massive infrastructure that makes implementing changes to meet the demands of the changing technological environment difficult. Furthermore, the operating expenses to sustain business were astronomical while business was declining. Thus, management faced pressure from creditors to cut costs in order to stay afloat. Another risk that Blockbuster faced was its “no late fee” initiative that caused a costly buildup of inventory. This caused cash flows and revenues to suffer, causing stock price to hit rock bottom, further risking the firm’s reputation as a firm worth investing in. However, its success lies in its well-known brand and important relationships with movie studios that rely on it as a major distribution channel and source of revenue.…
Mourdoukoutas, Panos. "Can Netflix Correct its Strategic Mistakes?." Forbes. N.p., 2011. Web. 4 Mar 2012. .…
This report analyzes the strategic and financial performance of Netflix in the movie and video stores industry. Through an examination of the video retailing industry’s five forces model, driving forces, key success factors, financial statements, and SWOT analysis, we have been able to clearly articulate Netflix’s position in the competitive market and develop recommendations for the foreseeable future.…
The always changing world of technology creates a challenge for many older businesses that once thrived years ago. Americans along with many other countries are becoming centered around immediate gratification and in a way, lazy. Fast is better and right now wins. When Netflix came into the homes of millions, it almost seemed like the end of all other movie rental providers. A change in leadership from a recent buyout has saved Blockbuster and has placed them as a leader once again in the entertainment business. Blockbuster has a new strategic plan that seems to be working, but a look into a new strategic plan that analyzes the good and bad, might suggest that a new strategic plan is needed. My strategic plan will not only point out the opportunities, areas that need improvements, and distinctions, but layout the new strategic plan that will create success in Blockbuster for years down the road.…
It is part of the business world for companies to establish their visions and missions in order to build around them the success of the company. Blockbuster and Netflix are no exception. Starting with the first; Blockbuster’s vision statement: "At BLOCKBUSTER, diversity means valuing differences. It's a corporate value that must be continually developed, embraced and incorporated into the way we do business." The company appealed to the diversity, differences, making the approach to all demographic group. Their mission, at some point changed adapting their mission to the new change of the movie rental market. The Blockbuster mission statement reads like this: "Our corporate mission is to provide our customers with the most convenient access to media entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, by-mail, vending and kiosks, online and at home. We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience." This statement shows the change the company had to do to stay competitive within the movie and game rental market.…
Many companies allow their competitors to set guidelines of their strategic thinking. They compare their strengths and weaknesses with strengths and weaknesses of their competitors. After, they begin to focus on building products that are better than the original products. This type of thinking opens the door for disruptive innovation. Disruptive innovation has proven time after time to have an advantage in developing creatively through the theories of innovation. Disruptive innovation created an advantage over the competition when a plan was developed correctly. Companies are developed with the goal of success in mind. In order to do so, these same companies must be willing to adhere to its main focus and not focus on its competitors. “One of the most striking findings of our research is that despite the profound impact of a company’s strategic logic, that logic is often not articulated. And because it goes unstated and unexamined, a company does not necessarily apply a consistent strategic logic across its businesses” (Kim & Mauborgne, 2004). Companies often lose focus of their overall goal causing failure. In today’s times, companies need to develop a strategy that keeps focus on themselves and not the competitor. Due to shared innovation, disruptive innovation has opened many doors of many different areas of strategic thinking.…
a) Regarding the goodwill amortization issue, we suggest a position that is in between the current BV practice (40 years) and Bear's recommendation (5 years), by using 10 years as the amortization period for goodwill.…
The ability to be creative and think outside of the box is fundamental in today’s more challenging and competitive business landscape. Organizations today are looking for business professionals who have the ability to lead through innovation. Innovation is the application of better solutions that meet new requirements, unarticulated needs, or existing market needs. This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society. In order for organizations to stay fresh and up to date they need individuals who are able to innovate and inspire new products or ideas. CEO of HCL Technologies, Vineet Nayar, is most notably known for his approach to leading innovation and transforming his at-risk IT services company into a global leader. By examining Nayar's innovation model, and that of other leaders like him, we can learn more about the skills and behaviors of such leaders and how they prepare their organizations to be more innovative. In this essay, the author will analyze research studies conducted on leaders of innovation and expound on the discovery skills of successful leaders in innovation.…
The case covers Blockbuster’s emergence in the video rentals market. After detailing the intricacies of the video rental market, the case takes a deeper dive into Blockbuster’s business model, based on brick-and-mortar locations throughout the US. This costly infrastructure has slowed the entertainment giant’s growth in an industry that has rapidly transitioned from the traditional store-based model, to mail rental and video-on-demand alternatives. The rapid transition of customer demand and the emergence of Netflix (Blockbuster’s main competitor) has incited Blockbuster’s rapid entrance into the video-on-demand market through the acquisition of Movielink.…