Management and Administration of Operations: Prioritizing Operational Performance over Innovation - A Case Study of Blockbuster vs Netflix

This report discusses the importance of operational performance and innovation in business organizations, with a case study of Blockbuster vs Netflix. It analyzes why operational performance was prioritized over innovation and suggests innovations that Blockbuster could have adopted to remain competitive.

Management and
administration of
operations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
What are the applications of operational performance :- ..........................................................2
Identify and discuss what were the reasons why operational performance was prioritised over
innovation?..................................................................................................................................3
What are the innovations that Blockbuster could have done to bring in innovation that would
have not had a serious operational..............................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In today's scenario the various business organisations are facing the issues related to the
management and operations because of the external environment. It is very important for the
business enterprise to maintain the systematic operational activities in order to have the growth
and success within the business enterprise. The business organisation are facing challenges of
heavy rivals in order to improve the efficiency and productivity. It is very important for the
company to respond to market change by developing the different business model and strategies
for the development of the business organisation. It is been observed that in the service industry
the organisation is spending much in the innovation and technology to meet the requirements of
the customers. This is the report which is based on case study case study of blockbuster where
the company is facing challenges while the Netflix is focusing on providing the various services
in the market in order to satisfy customers needs and expectations(.Vissers, and Beech, 2019).
This report will include discussion on why organisational performance is prioritise in
comparison of innovation. Further it will cover that what steps can blockbuster take in order to
make it more competitive.
MAIN BODY
It is been identified that the developing of industrial efficiency is a continuous process for
the management of the business organisation. The establishment of industries came at a time
when the producers was going through a duration of stagnancy. It is very important for the
business enterprise to develop operational performance by evaluating at every operational
management. The operational management is the matter of concern for the business enterprise .
The organisation can focus on the various tools and metrics through which the company can
focus on taking the necessary steps in order to manage the operational activities within the
business organisation. The data driven procedure to deviation gives the foundation for plant
optimization. It is very important for the business to focus on the quality of the product or
services while minimizing the operational values.
1

What are the applications of operational performance :-
There are various strategies and the basic points which shows the application of business
performance which are discussed below:
 Resource tracking and management- It is been observed and identified that quality of
the product or service is been analysed by the resources which is been utilised in the
manufacturing processes of the business enterprise. It is very important for the
management to focus on the various requirements for the smooth functioning of the
various business operational activities. It is very important for the operational
management to use the automation and the latest technology in order to improve services.
 Operator management- This is the another aspect where the operation management is
the important matter of concern for the business organisation. It is necessary for the
company to make the optimum utilisation of the resources in order to have productivity
within the production department of the business enterprise. (Aytug,, Khouja, and
Vergara, 2019).
 Predictive maintenance- Faulty tools and unplanned downtime impact productivity in
diverse manner. Equipments downtime can bring down the concentrate of operators lead
to material waste and impact the quality of goods produced. Hence, predictive maintain
strategies develops the performance of producing tools and the quality of throughout
attached to a production cycle.
Identify and discuss what were the reasons why operational performance was prioritised over
innovation?
The business organisation performs the various activities in order to produce the products
and services. It is very important for the operational management to take care of the various
resources so that it is not been wasted while producing the good and services. It is necessary for
the operational management that it performs the various activities effectively and efficiently in
order to maintain the quality of services within the organisation. The management is responsible
for measuring the efficiency by comparing the productivity. The blockbuster case states that it
keeps on focusing on the different aspect by reducing the cost of the services. They just focused
on the services which kept on providing the requirements for the family holiday where the
people can can have a services available at the weekends. Blockbuster provides first priority to
2

the operational performance as it makes the business more effective and competitive in the
market place. It is very important to understand why the blockbuster have enjoyed success. It is
been analysed that the offers which is presented by the companies in order to attract customers.
There are several reasons which defines about why the operational performances was important
rather than innovation. The operational management is the most important aspect for the
companies in order to use the resources properly which can impact in attracting the customers.
The netf8ix focus on importing the services which includes the online platforms which helped in
attracting more customers. It is been analysed that Netflix is giving the tough competition to the
blockbuster because of the various innovation and operational strategies which is adopted by the
company. It is very important for the busi9enss organisation to have a look over the operational
performance of the company in order to improve the services which will help the company to
have a growth and success. The blockbuster just focused in the operational performance which
lead to taken over of the market by the Netflix. It is been analysed that the blockbuster focus on
the other aspects rather than innovation because it believed that this will help the organisation to
achieve more success. But before identifying the needs and requirements in the market this made
a wrong assumption. The Netflix has an advantage of this which is brining the innovation in the
environmental to attract customers. (Langabeer II, J.R. and Helton, J., 2019)
It is been analysed that the company
What are the innovations that Blockbuster could have done to bring in innovation that would
have not had a serious operational
It is been identified that the innovation plays vital role in the creation of the success of
the business organisation. This helps in creating the brand image of the company in order to
attract customers. It is very important for every business organisation to have innovation
according to the various environment requirements. This is the matter of concern for the success
of the company. The innovation leads to changes in the production or services within the
company which can help in creating value for the customers. The innovation is related to use of
the latest technology within the services which is provided by the business enterprise. Every
3

business organisation requires the modification and the development in the product and services
which can enhance in the productivity and attracting more customers. It is been analysed that the
management need to take care of the various issues which are related to the innovation and
development within the operational activities it is very important for the blockbuster to bring
innovation in order to compete with its competitors it is identified that the company can focus on
the better services which will help in the other aspects such as growth and success of the
business enterprise. The another type of innovation which can be provide by the company in
order to improve the services which ig given by the company to its customers. The company can
focus on the various promotional tool where the organisation can focus on inviting the actor for
the promotion of the various DVD and the other various services. The blockbuster need to focus
on the new technologies so that it can have the competitive advantage. The online services is the
most important aspect for the blockbuster to adopt in order to gain the attention of the customers
in comparison with the Netflix the online streaming is the most important innovation which is
required by the Blockbuster to introduce in the market. The blockbuster can have run outdoor or
drive in cinema events with specific nights such as 80s or super hero move nights. The company
need to analyse the needs of the customers and the happiness which will makes the company to
achieve the organisational objectives and goals.
It is very important for the business enterprise that it adopts the various promotional tools
in order to spread awareness of the products or services. The organisation need to identify the
various needs and demands of the customers where the organisation need to be customer centred.
This helps the company to gain the competitive advantage.
In order to have innovation to beat the competitors there are various practices which can
be utilised by the organisation in order to be competitive such as membership card or packages
which could be its speciality in providing goods and services. This will allow the company to
offer discounts fpr the customers it is very essential for the bl0ockbuster to maintain the digital
presence in order to have competition with Netflix. Technology plays the very important role in
4

adopting the innovation and development w2ithin the services of the business organisation. It is
very important for the Blockbuster to innovate on the streaming and the digital process which
will will assist in the various aspect. The business strategy of the organisation plays the vital role
in the formation of the growth of the organisation.
CONCLUSION
From the above report it is concluded that operational pe4rfoemce of the company is
important but at the same time the innovation is equally important for the organisation. The
operational management is the priority for the organisation for bringing the innovation. As
discussed in the above report related to the case study the Blockbuster just focus on the
operational performance rather than bringing the innovation in the industrious. This was taken
over by the Netflix where the organisation has focus on the needs of the people and bringing the
change in the world by adopting to various technologies. It is been analysed that the Blockbuster
need to identify the various new technologies which will help in analysing the competitive
advantage and the company can focus on bringing the change which will be helpful for the
company in achieving its goals and objectives.
5

REFERENCES
Books and Journals
.Vissers, J. and Beech, R., 2019. Health operations management. Routledge.
Aytug, H., Khouja, M. and Vergara, F.E., 2019. Use of genetic algorithms to solve production
and operations management problems: a review. International Journal of Production
Research, 41(17), pp.3955-4009.
Langabeer II, J.R. and Helton, J., 2019. Health Care Operations Management: A Systems
Perspective. Jones & Bartlett Publishers.
Sheehan, R. and Cordner, G.W.,2021. Introduction to police administration (p. 233).
Cincinnati, OH: Anderson Publishing Company.
Gunes, A.E. and Kovel, J.P., 2020. Using GIS in emergency management operations. Journal
of Urban Planning and Development, 126(3), pp.136-149.
Grabner, T., 2019. Operations management. Springer Fachmedien Wiesbaden.
Mattu, A., Joseph, J.W. and White, B.A., 2020. Emergency Department Operations and
Administration. Emergency medicine clinics of North America, 38(3), pp.xiii-xiv.
6