This report explains the importance of operational performance over innovation in an organization based on a case study of Blockbuster. It also explores some innovative methods that Blockbuster could have adopted without affecting their operational performance. The report discusses the advantages of operational performance over innovation, such as approaching customers, managing competition, achieving goals, research and development expense, time and quality, customer satisfaction, and dependency. The report also suggests some innovative methods that Blockbuster could have adopted, such as dealing online, updating their DVD collection, fluctuating prices of DVDs, and operating on social media.