Case study: Netflix vs Blockbuster

RESEARCH PAPER
(Overview of both blockbuster
and Netflix)

Executive Summary
Internet is an easy approached which is reached and adapted by every person and the
people are addicted to the services which are provided through internet. As in the competition of
the blockbuster, Netflix brings the same concept as of streaming the videos on demand and also
Movies and games across the world. As the founder of Netflix is Reed Hastings and Marc
Randolph who bring this concept in 1997 with various new changes which distract the people
through blockbuster by their video and rental DVD which they are providing at that time. The
aim is to determine the success of Netflix in context to blockbuster videos. It is examined that by
providing proper quality video with low pricing strategy attract the customers interests towards
their services. In such cases Netflix are providing such quality services and also the usually
upgraded there system which provides faster speed at the time of surfing.

Table of Contents
INTRODUCTION...........................................................................................................................4
Why Netflix is important............................................................................................................4
How Netflix can beat Blockbuster..............................................................................................4
Aim of the report ........................................................................................................................5
Objectives ...................................................................................................................................5
Research Background..................................................................................................................5
Rational ......................................................................................................................................5
STRATEGIC POSITIONS .............................................................................................................6
PESTLE Analysis .......................................................................................................................6
Porter's Analysis..........................................................................................................................7
STRATEGIC CHOICE....................................................................................................................7
Business strategy.........................................................................................................................7
Corporate strategy.......................................................................................................................8
International Strategy:.................................................................................................................8
Strategy Actions...............................................................................................................................8
Strategic Development ...............................................................................................................8
Strategic leadership.....................................................................................................................8
Strategy in Practice ....................................................................................................................8
Strategy Analysis.............................................................................................................................9
RESEARCH METHODOLOGY ....................................................................................................9
DISCUSSIONS..............................................................................................................................11
CONCLUSION..............................................................................................................................17
Research Limitation ......................................................................................................................18
REFERENCES..............................................................................................................................19
APPENDIX....................................................................................................................................21
Questionnaire............................................................................................................................21

INTRODUCTION
Why Netflix is important
In the competition of the blockbuster, Netflix brings the same concept as of streaming the
videos on demand and also Movies and games across the world. The founder of Netflix is Reed
Hastings and Marc Randolph who bring this concept in 1997 with various new changes which
distract the people through blockbuster (Goff Inglis and Zolfaghari, 2017). The research is based
on this topic regarding the Netflix beat blockbuster videos. Its importance is that it bring new
changes in the digital system and also new web series are launched with good quality and
reasonable subscription fees.
How Netflix can beat Blockbuster
Blockbuster and Netflix are considered to be one of the major changing app which attract
the customers and fulfil the demand of the people in various ways. Their main object is to
provide quality videos and games which attract the interest of the customers towards their
services and also they can use it worldwide. The first concept to promote such services are
provided by the blockbuster which on demand bring services such as video and games are also
imposed through such demand, in the 2000s they lose their revenue which results in arising
bankrupt to the company. They also have to close various store by fulfilling the demand of the
people but they can't attract the interest of the people for longer run.
Changes in demand and also the taste of customers changes not results in downfall of the
least usage of app. As if the company can't bring new techniques to attract the interests of the
customers for longer terms than it results in lacking in providing services. As the use of internet
are not more in previous times and also mainly people are not known of such app. They didn't
use any promotional techniques to attract the interest of the customers. Netflix nowadays uses
various innovative technique to attract the customers and that the reason they beat the
blockbuster which results in arising bankruptcy to the company. The taste of customers are
frequently changing and they always bring new products but still Netflix is surviving and using
various strategies to adapt the interest and surfing of their sites.
The brand name of blockbuster is strong and that also maintain various franchise
agreement which enhances their business into different counties. At the time of having a huge
success. They employed many people and also open mainly stores which is the major factors of

their employment but due to changes in time they suffer loss and also competitors in the market
which results in closing all the stores and many employees lost their jobs.
Aim of the report
To determine the success of Netflix in context to blockbuster videos and also present that
how Netflix beat blockbuster market at large scale. They are now holding ten times the net worth
of the blockbuster company.
Objectives
The objectives which represent the blockbuster and Netflix company are related to
outline the review of both blockbusters and the Netflix and they also examine various exploring
strategies adopted by Netflix to beat Blockbuster. It helps to identify the choice and actions
adapted by Netflix to remain the dominant online streaming provider.
Research Background
Technology plays important role in attracting customer in different way. One of the major
role is played by the Blockbuster and Netflix. Nowadays Internet is easily approached which is
reached and adapted by every person and the people are addicted to the services which are
provided through internet. Due to surfing they need the quality which the Internet is providing to
watch the video, play games and also watch the complete Movies through this app. One of this is
blockbuster which was founded by David Cook in America in the 1990 s with a new concept of
delivering rental DVD or streaming on videos (Daidj and Egert, 2018). At that time this is the
new app which is capture by every person and mostly person uses this app to stream the videos
and games. With the success of the blockbuster, they employed 84,300 people around the world
and opened 9,094 stores across the country.
Rational
Researcher is very fond of conducting survey in technology and that the only reason he
selected this topic to identify various fact and figures regarding the people switching from one
app to another. As the issue are also raised regarding adopting of new app which provides more
quality video and fast surfing facilities and that's the reason researcher find it interesting to
research on this topic. Researcher came across many videos and outline regarding the Netflix and
their subscribes which are daily increasing and in that case researcher select this topic so that he
can conduct a deep study and examine various information regarding the failure of blockbuster
videos. As many authors and other researcher also conduct research on this relevant topic so lot

of data are already collected which helps them to conduct a valid research and also collects
matters from the research which the researcher had already researched on that relevant topic.
The researcher chooses this topic so that relevant information is collected which helps the
companies to bring new changes in technologies and also develop new and fast growing services
which attract the interests of the consumers at different level.
STRATEGIC POSITIONS
PESTLE Analysis
It is mainly used by the companies to analyse their macro factors which affecting their
marketing strategies and there products to enter into the new markets.
Factors Analysis
Political Mostly the results of blockbuster loss is related to lot of restriction by
the government and they cannot use many services to bring their video
in different countries.
Economic Blockbuster is affects by restriction in trade barriers which they cannot
promote their products and video in international markets (Kumb, Kunz
and Siegert, 2017).
Social Changes in internal and external environmental demand bring lot of
changes which is to be also adapted as if they are stable they had to
adapt more subscribers and viewers in case of blockbuster as well. As
blockbuster is also enhancing the need of the customers and they
provide more employment opportunities by opening stores in global
market (Panniello, Gorgoglione and Tuzhilin, 2016).
Technological Netflix adapted their technique to bring new and innovative games and
video which increase their interests of the customers and also they
enhance their subscriber and viewers of that channel (Jugovac and
Jannach, 2017).
Legal Netflix enhance their network in wider ways that they develop their own
web series which was launched in 2016 and also engages in films which