Blockbuster's Operational Performance: Innovation and Management

This report examines Blockbuster's operational performance and its failure to innovate, leading to its downfall compared to Netflix. It defines operation management as the synergy between company units to achieve goals efficiently. Blockbuster prioritized traditional methods over innovation, missing the shift to online services. The company failed to conduct market research, identify its strengths and weaknesses, and capitalize on opportunities like collaborating with Netflix. Innovation is crucial for competitiveness, and Blockbuster needed to focus on retail experience, brand identity, and continuous process improvement to survive. The report concludes that Blockbuster's lack of adaptation and innovation ultimately led to its bankruptcy.

MANAGEMENT AND ADMINISTRATION OF
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Presenting operational performance............................................................................................3
Describing the innovation that need to be followed by Blockbuster.......................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Operation management is the administration of business practice that helps in creating the
highest level of efficiency possible within company. The present report was based on case
study of Netflix and Blockbuster in which it has identify about operational performance
management that is used by company. In addition to this, the report has discussed about
innovation that can be used by firm.
MAIN BODY
Presenting operational performance
In the case study of Blockbuster it has faced huge loss due to not following the
innovation in their operational management. Along with this, company process was hinder due
to lack of innovation and it was bankrupt later. Moreover, it has been found that Blockbuster
leadership style also failed and due to that company was not able to find the best suitable
leadership style . Operation management can be define as synergy between various company
units and the ability to produce greater output together. In simple words it can be describe as
level of business departments that collaborated in accomplishing the specific goals in limited
set of time. In addition to this, it is important for company to mange it functional unit so that
it work effectively and efficiently. Although operational effectiveness is core objectives of the
company and it seek to maximize the proper use of resources in the company in order to
improve quality and productivity (Wamba and Queiroz, 2020). The Blockbuster company has
prefer to make their functional unit proper as compare to innovation. The organization was
selling their products in traditional manner in order to maintain sales. Although like Netflix
the company has not adopted for innovative idea of making use of internet.
Moreover, operational performance management is known as an ability to perform
similar activities better than rivals. Such Blockbuster came up with the idea of selling DVD
of film in the store and that time Netflix was trying hard to stay competitive in the market.
Although operational performance was prefers more in year of 2004 as people were not
very much aware about internet and its power. It was not very common in public and due to
that operation performance was pref red more by Blockbuster. In addition to this, the taste and
preferences of customer was also different so company has not adopted for any kind of
innovative so that it do not loose any customer (Graves, 2021). Furthermore, The company

has given their employees roles and responsibility that need to be followed by them in order
to satisfy their customer as well as to develop the functional unit of the company. In
addition to this, the organization has not made any change and due to that there was no
progress of the firm in the market area and this is why it has not adopted for innovation
(Adedugba and et.al., 2022). Moreover, Block master has not conducted any market research
and due that organization was not aware of the current trend going on and it has lead down
the productivity of firm. Along with this, due to same operation going on in the company
organization was not able to identify their strengths and weakness and it was not able to meet
the competitive advantage. It has been identified in the case study that Netflix has offer
Blockbuster to collaborate business together by selling the rented video on store as well a
through online watching. Blockbuster has refused this strategy and it has to suffer huge loss
and company was shut down. In addition to this, blockbuster has never changed their
operations and due to that it was not able to meet up with the current trend.
Although in order to survive in dynamic business environment organization has to
meet with the changes and find appropriate solution to deal with it effectively (Whitelock,
2019). In addition to this, Blockbuster never conducted market research and due to that
company was not able to make any future plan to increase the growth of company in
competitive market. Along with this, company was following the same business operation and
due to that organization was not able to come up the creative idea while working. Although for
running the company in market it is necessary for blockbuster to give their employees
opportunities so that it come up with ideas that benefit performance of employees. Thus, it
has been found in the case that innovation is very important for the organization so that it is
able to cop up with the future contingency in effective manner. It generally provides
company with right path as well as to improve their productivity in the market in positive
manner (Dai and Tayur,2020).. In addition to this, innovation not only helps company to
improve performance but also contribute in increasing the brand name of the firm in positive
manner. Moreover, it has been identified from the case that company should keep changing
their performance in positive manner so that it can meet the current market trend as well as
customer. Although efficient operations are cost effective as well an s reducing waste while
maintaining quality and service. The company can manage efficiency by comparing the
operations with inputs and outputs. There various advantage that company can have it makes

use of innovation and operation such as reducing the cost like making the same output from
less input. It grows the business such as making much more output from little input.
Efficient operation can also increase the output by making output from same input. Thus,
operational innovation is about making the dynamic change in the efficiency by working
in innovative way (Enad and Gerinda,2022). It also involve completely new ways of making
product fulfilling the service promise or managing customers and orders. It has various
benefits for business by meeting customer needs or demands resulting in more market share
or better customer retention. It also helps in creating a competitive advantage to improve or
defend in the market place.
Describing the innovation that need to be followed by Blockbuster
Innovation is one of the crucial part of long term competitiveness of company and it is
necessary for it be managed effectively. Along with this, innovation is derived from Latin
verb innovate that means to renew or to find new ways to do things. In simple words it means
to improve or replace something such process, service or product. Moreover, in terms of
business it is defined as process through which product or services need to be renewed and
introduce new techniques for establishing ideas to create new value (Rastegar and et.al., 2021).
So in order to run business effectively company has to find out innovative ways to deal with
external and internal threats. In the case study it has been found that Blockbuster has not
changed their operation management and due to that it has face loss in the market. Although
company should have make use of innovative approach like using digital marketing in order
to cover large area of market and to meet customer needs. In addition to this, with the help of
internet it could have established their compand in market by allowing customer to watch
film online. It could have charge money from the user and given them subscription in order to
keep connected with them.
Although with help of online business it would have easily identified the taste and
preferences of the customer which would have result in satisfying their customers. Moreover,
use of internet has been increasing day by day but at time of pandemic it was on peak. This
has helped Netflix in increasing their productivity and performance in global market area of
OOTD platform (Smith and et.al., 2021). Netflix has taken advantage of internet in order to
increase their busies. Blockbuster should have collaborated with Netflix as it would have help
the company in covering the large area of market. The innovative idea of collaboration would

have contributed in increasing the market share of the company and to attract large customer.
Although if company was in partnership it would have never gone bankrupt. Along with this,
innovation is important as it helps in increasing competitiveness. The organization have
option of choosing price leadership that must secure their long term competition by
developing innovative and highly efficient processes. Innovation allows business to strive for
a differentiation strategy that contributes in reducing the competition.
Furthermore, in order to be successful in the market Blockbuster could have focused
on retail experience and have maintained their position in a way that was more in line
with new expectation of the client. However, company has tried turn down the competition
with help of advance technology and did not have invested in finding the solution for
retaining their clients (Graves, 2021). Although in order to improve and retain the market share
and power it should have improve their brand identity and values by increasing the
market share and power. So Blockbuster need to understand their strength and weakness in
order to improve their performance. In addition to this, Blockbuster have lack of effective
process of innovation in which traditional improvement practice gets ignore so company need
to conduct process improvement. So in order to enhance the process company first need to
analysis their challenges so that it can improve their performance.
Although Blockbuster was failed to recognize their weakness and it went bankrupt.
In order to survive in the market areas the company has decided to bet Netflix by launching
their own platform to rent videos online and to return the to the stores called Total Access
(Montañés-Del Río and et.al., 2021 ). This strategy has helped the company in gaining the
attention of customer more the Netflix. However, this strategy failed due to cost factor as the
cost programme and company was not able to cop up with it because of salary dispute. Along
with this, company should have adopted for Continuous Process Improvement as it will help
survival of organization and to attempts in long term. Thus, consistent re- evaluating and
developing business processes organization. Along with this, company should make use of
process mapping which is basically collection of activities that transform one or more inputs
into one or more outputs and put together. Although implementing process of mapping
would have organization in getting about basic market idea and requirements. Moreover,
process map gives us ways what business does by taking into account roles, standards and

responsibilities. It also contributes in determine functions of business entity, standard process
as well as responsible authorities that will contribute in success of business.
The one of the most important work that blockbuster should have done in identifying
process bottlenecks and to eradict them. However, unplanned as well as unmanaged
organization leads to poor business process and it will directly affect overall growth of
business. Thus, it is essential for company to notice the weak area at beginning so that it is
able to deal with them properly. Although there are two ways of process design such as
systemic implementation that requires to make use of specific software or tools for
implementing (Feng and et.al., 2021). On other hand, non – systematic implementation do not
require any kind of software. Thus, fall blockbuster was not able to identify the market need
at the right time and trying ineffective ways for process innovation. The company suffered
form fear of failure and to due to that company went bankrupt. For dealing with such issues
company needed to find innovative ways to resolve the issues. Hence, company should
have adopted for continuous improvement process so that it was able to manage all levels of
the organization and it has fewer chances to be effective. Moreover, it would have helped
company in exercising project that should be within the management system itself.
CONCLUSION
From the above report it has been concluded that blockbuster company was not bale to
meet up with the changes of business environment. Along with this, report has summarized
about the operational performance of the company and the way it has affected overall growth
of organization. In addition to this, the study has also depicted about the innovative idea that
need to be followed by firm for sustaining in market area.

REFERENCES
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Feng, W. A. N. G. and et.al., 2021. Analysis on the Curriculum Reform of Management
Operations Research of Business Administration Specialty based on Students'
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Online references
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