Disruptive Innovation: A Case Study of Blockbuster

This presentation explores the concept of disruptive innovation using Blockbuster as a case study. It discusses the internal and external perspectives, market perspective, and technology perspective of the company. Recommendations for improving services and staying competitive are also provided.

DISRUPTIVE
INNOVATION

Introduction
• Blockbuster LLC, is an American Video company
• It was founded in 1990s
• It offers the online services offers to users such as series,
and films
• It is based on Subscription of users
• It main focuses on disruption innovation such as mail
order services
• It provide the services at the international level

INTERNAL PERSPECTIVE
Human Resources
The company has 84300 employees worldwide that design and think innovatively
Employees design the innovative DVD’s to provide the users on rent
Organisational Culture
Market oriented culture follows by the company which main focus is on
competition, achievements, and getting job done.

Internal Perspective
Resources
• The company had its own dish network
• Human resource is the main asset that helps to design innovative DVD’s,
and Videos.
Incumbents focus on improving their services for demanding customer
(Christensen, McDonald, Altman, and Palmer, 2016)
Organisational Structure
Collectivism followed by the company as the employee works together to
attain the success (Tipster, 2013) .

Recommendation
• The company has to utilize it resources properly such as
dish network with the innovative idea.
• It has been observed that the organization has to sell the

EXTERNAL PERSPECTIVE
Commitments and relationships with stakeholders
• Providing low cost services due to which the relation with the
stakeholders is strong
• Stakeholders appreciate the highly innovative services of
organisation as it provides the quality of services in low prices
Regulatory and economic conditions
Economic crises affects the demand of consumers as well as
innovation
Home theater affects the demand of users towards it

Recommendation
• Blockbuster should develop the services as per the legal
authorities
• The company has to provide the services from which the
demand of consumer towards the Netflix is reduces

MARKET PERSPECTIVE
Customer visit programs
• DVD’s, videos and films are offers by the company to
users
• Three types of consumers from which the company deal
such as most profitable, mainstream, low end to the
market
Empathic designs
• It mainly focuses on improving the product and services
for their customers
• Deliver more suitable functionality
• Ignore Netflix

Recommendation
• The company has to improve its services and switch with
the needs and desire of consumers.
• The company has to invest in research and development
department to identify the factors that affects the position.
• Introduce the innovative ideas so that the competitors
cannot beat the company (Vecchiato, 2017)

TECHNOLOGY
PERSPECTIVE
Technological strategies
The company provided the DVD’s on rent but now it
shifts services towards the videos, films as per the
continuous innovation
Dish Networks are high effective which is taken by
consumers
The company introduce the mail-order service,
Redbox automated kiosks, and video on demand

Recommendation
• The company has to make the videos in a way that does
not affects the society.
• It has to promote the services through video marketing
• The company has to use its technology resources and
develop the effective resources (Blockbuster, 2018).

CONCLUSION
At the end, it is concluded that the Blockbuster is the
video services company. It design the services in a
manner that directly affects the demand of consumers.
The videos and series has a negative impact on the
society but it also has positive impact. The internal,
external, market and technological perspective has
been discussed. As per the analysis, it is recommended
that the organization has to develops the design that
positively affects the society.

References
Reselman, B. (2018) The ‘Blockbuster Effect’ in the Age Of Automation.
[online] Available from: https
://devops.com/the-blockbuster-effect-in-the-age-of-automation/ [Accessed 10/7/19].
Blockbuster. (2018) Forward-looking Statements. [online] Available from:
https://www.sec.gov/Archives/edgar/data/1085734/000119312505219087/
dex991.htm[Accessed 10/7/19].
Tipster. (2013) 4 Types of Organizational Culture. [online] Available from:
https://www.artsfwd.org/4-types-org-culture/ [Accessed 10/7/19].

References
Blockbuster. (2018) Employees. . [online] Available from: https://
secure.ethicspoint.com/domain/en/report_custom.asp?clientid=18256 [Accessed
10/7/19].
Guttentag, D.A. and Smith, S.L., (2017) Assessing Airbnb as a disruptive innovation
relative to hotels: Substitution and comparative performance expectations. International
Journal of Hospitality Management, 64, pp.1-10.
Vecchiato, R., (2017) Disruptive innovation, managerial cognition, and technology
competition outcomes. Technological Forecasting and Social Change, 116, pp.116-128.
Christensen, C.M., McDonald, R., Altman, E.J. and Palmer, J., (2016) Disruptive
innovation: Intellectual history and future paths (pp. 1-52). Harvard Business School.