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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 brief history of Blockbuster
2.2. A brief 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.
