Strategy and Case Analysis

Running head: STRATEGY AND CASE ANALYSIS
STRATEGY AND CASE ANALYSIS
Name of the Student
Name of the University
Author Note
0

STRATEGY AND CASE ANALYSIS
Executive summary
This paper sheds a light on two entertainment companies, Netflix and Blockbuster. This paper
reflects on the reasons of the growth of Netflix and the failure of Blockbuster. The paper assess
the innovations and the strategies that Netflix made that helped the company gain a competitive
advantage in the market and helped the company to be one of the largest internet companies in
the market.
1

STRATEGY AND CASE ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Historical overview of Blockbuster.............................................................................................3
Historical overview of Netflix.....................................................................................................4
Strategic models of Blockbuster and Netflix...............................................................................4
Business elements of Netflix and Blockbuster............................................................................7
Innovation of Netflix...................................................................................................................9
Dominance of Netflix in the future............................................................................................10
Recommendations......................................................................................................................11
Conclusion.....................................................................................................................................11
2

STRATEGY AND CASE ANALYSIS
Introduction
Strategy models are vital aspects taken up by a business that contributes to the success of any
business. Strategy models consist of strategic plan or models that are designed to enhance and
improve the operations or a process in order to satisfy and meet the goals of the organization
(Frow et al. 2015). The use of strategic models gives a sense of direction to the organizations and
helps in gaining a competitive advantage in the market. This paper sheds a light on the growth of
Netflix over Blockbuster and how it will continue to dominate the entertainment market in the
coming years.
Discussion
Historical overview of Blockbuster
Blockbuster LLC, previously known as Blockbuster Entertainment, Inc is a video game
and home video rental services that provides their services through rental shops by streaming,
cinema theater and also by mail. It’s an American based company founded by David Cook in the
year 1985 in Dallas, Texas. The company revolutionized the entertainment industry by their
services becoming an instant hit with the customers in America that led them to grow their
market by opening stores across America (Hiller 2017). However in 1994 the company was
bought by Viacom Inc, and allowed financial resources that helped Viacom to proceed with their
bid for Paramount Communications. Blockbuster faced problems in the late 90’s due to new
ownership, the soft market for rental video shops and growing competition (Hiller 2017).
Nevertheless, Blockbusters coped up by refocusing on their core element that was video renting.
In the late 1990’s Blockbusters, boasted about stores near almost all the neighborhoods with the
3