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MA722AssgntThree(3) MNG932002 Strategy and Case Analysis Assessment 3 – Case Study Due Date: 9:00 am (AEST) 28 May 2018 Value: 50% (marked out of 50) Instructions During the 80s and 90s, Blockbuster...

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MA722AssgntThree(3)

MNG932002 Strategy and Case Analysis
Assessment 3 – Case Study
Due Date: 9:00 am (AEST) 28 May 2018
Value: 50% (marked out of 50)
Instructions
During the 80s and 90s, Blockbuster dominated the US home video rental market. However, the emergence
of Netflix in 1997 with its ‘rental by mail’ model challenged Blockbuster’s business model (and market
dominance). Blockbuster’s market position was further weakened when Netflix began to stream video
content directly to consumers’ computers. In this case study, you are required to prepare a 3000-word report
that examines how “Netflix beat Blockbuster Video”.
This assessment focuses on Strategic Choice and Strategy in Action. In preparing your report, you should
demonstrate understanding and application of the strategic concepts that are outlined in in Part II: Strategic
Choice and Part III: Strategy in Action of the textbook.
You should specifically address the role of technological diffusion, first movers and followers, and
innovation. In addition, please consider whether Netflix will continue to remain as the dominant online
streaming provider in the US?
Your report must be structured as follows:
1. Introduction (5 marks)
2. Institutional Background (5 marks)
2.1. A
ief history of Blockbuster
2.2. A
ief history of Netflix
3. How Netflix beat Blockbuster (20 marks)
3.1. Changing technology
3.2. Retail outlets versus operating online
3.3. Pricing strategies
3.4. Netflix’s innovations
4. Will Netflix remain the dominant provider of online video streaming? (15 marks)
4.1. Netflix stumbles: The demise of Qwikster
4.2. Netflix rebuilds: The rise of original content
4.3. The future of Netflix
5. Conclusion (5 marks)
Tips for preparing your report:
• Define your terms;
• Clearly explain the concepts;
• Make use of multiple industry and academic references (minimum of five); and
• Keep to the word limit.
Answered Same Day May 19, 2020

Solution

Abr Writing answered on May 23 2020
140 Votes
Title: Netflix beat Blockbuster Video
Author:
Course Name: Strategy and Case Analysis
Course ID: MNG932002
Submission Date:
Table of Contents
Introduction    3
Institutional Background    4
Blockbuster: History    4
Netflix: History    5
How Netflix Beat Blockbuster    5
Changing Technology    5
Retail Outlets versus Operating Online    6
Pricing Strategies    6
Netflix’s Innovations    7
Will Netflix remain the dominant provider of online video streaming?    7
Netflix stumbles: The demise of Qwikster    7
Netflix rebuilds: The rise of original content    8
The future of Netflix    10
Conclusion    11
Reference    12
Introduction
Creating a Business plan is a procedure that organizations use to decide a strategy that prompts income development and expanded benefits - at the end of the day, a way to progress. Two imperative parts of the business a
anging process are setting targets, additionally called objectives, and settling on strategic decisions to achieve these goals.
Defining Goals
Goals are forward-looking proclamations of what an entrepreneur plans to achieve. These can be quantifiable - for instance, expanding deals 20 percent in the up and coming year. Numerous targets are not communicated in numerical terms, in any case, for example, defining an objective of enhancing resolve in the deals and promoting division.
Reason for Defining the Goals
Having targets set up enables you to quantify your organization's advance. You can look at the quantity of units you wanted to offer, for instance, versus what really happened and endeavor to comprehend the explanations for any positive or negative fluctuations. For a business to succeed, all individuals from the administration group and staff must try. Setting targets and imparting them to the individuals from the association guarantee that everybody is centered on the most noteworthy need undertakings and is working under similar suppositions about the organization's future.
Strategic Choice: Definition & Significance
Each organization has a specific measure of assets accessible to it - among them monetary assets, HR, profitable limit and dissemination channels. Strategic decisions are the particular stages an organization expects to take to send these assets. Your strategic decisions could incorporate figuring out what items and administrations to pitch, where to offer them, how to offer them and what target markets to pitch them to. Investing a lot of energy and cash presenting an item that ends up having an exceptionally restricted market is a case of a te
ible strategic decision. Reckoning an adjustment in buyer tastes and acquainting an administration with exploit that change before contenders do is a case of a decent strategic decision. The advancement of business methodology considers that all organizations must adapt to restricted assets to some degree. The best organizations can assign rare assets to the undertakings that have the best positive effect on income development or upgrades in profitability and productivity that can build net revenues.
Relationship with Defining Goals
The targets portray where the organization needs to go. The systems delineate how it means to a
ive. An eatery may have a target of expanding the quantity of clients it serves in the following year by 12 percent. A few unique techniques could be utilized to push the organization toward this target. For instance, kitchen tasks can be disentangled so dinners are conveyed to burger joints rapidly. Or on the other hand the eatery could offer extraordinary rebates on evenings when business commonly has been moderate. (Hickling, 2018)
Institutional Background
Blockbuster: History
The chapter of Blockbuster began in 1985 with the first store opening in Dallas. By 1992, Blockbuster was the undisputed leader in the video rental space. It had more than 2800 stores globally. It even had acquired other retail businesses like Ritz and Major Video etc. They were so popular that Viacom bought Blockbuster in the year 1994 for a massive $ 8.4 billion. By 2000, the revenue that it collected from late fees was close to 20% which was a total of $ 800 million. It continued to grow even further and by 2004 it had reached the peak of its success. It had over 9000 stores worldwide. From 2004 to 2010 Blockbuster lost a lot of business and filed for bankruptcy with debt of over $ 1 billion.
Netflix: History
Netflix is an entertainment company and it is in the business of providing video on demand. It is based out of California. As of now it is also involved in production of film and TV series content. It began in 1997 with the DVD rental business and slowly expanded into other things. It eventually started providing online content to be viewed in 2007. By 2010 the company expanded its operations outside the US and ventured into Canada. And from 2010 to 2016 was a massive growth period of Netflix and by 2016 it had established a strong presence in over 190 countries and continues to grow. As of April 2018, the company had subscriptions from more than 125 million people worldwide. The total revenue was $ 11.92 billion globally in 2017.
How Netflix Beat Blockbuste
Changing Technology
Netflix started with the same service as Blockbuster was providing. Still it was able to achieve a lot more than what Blockbuster could never because it made sure that it was working on the latest technology that was available to its customers. In the 1980s and the 1990s the DVD rental business made sense as the world was not growing digitally. But in the 2000s the digital boom had started to catch up and Netflix realizing the opportunity jumped into what was blue-ocean at that time. They had the whole pie for themselves as they were the first in that field. The last decade has made the world its digital native and that favored Netflix. Blockbuster failed to realize the potential of the...
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