1. BlockBuster: Disrupted or Disruptor?
Asper Consulting Group Emily Sanders Matt Borgford Tanis Brako Carlos Kan

2. Why Blockbuster?
Blockbuster is a great example of a company that did not adapt to disruption in their industry, eventually becoming obsolete.

3. How should Blockbuster react to disruptors in their industry?
key issue
How should Blockbuster react to disruptors in their industry?

4. Acquire Netflix to adapt to changing consumer and technological trends
Recommendation
Acquire Netflix to adapt to changing consumer and technological trends

5. Who is Blockbuster? Video rental service Sell complementary products
Has subscriptions for repeat movie watchers
Blockbuster is in the business of providing an experience to it’s customers

6. Value Proposition
To entertain and delight customers with a wide variety of available options.

7. Core Competencies Physical Stores Store Operations
Great Movie Selection
In-Store Experience

8. Looking for entertainment
The Consumer
All Ages
Current
Value Experience
Looking for entertainment
Adapt to trends

9. Adoption to technology
The Consumer
All Ages
Current
Value Experience
Looking for entertainment
Adapt to trends
Adoption to technology
Blockbuster did not adapt to the customers changing needs and eventually went bankrupt

10. Netflix was adaptive in it’s model to reach consumers
Who is Netflix?
Started as mail order subscription
Went direct to consumer
New Technology
Leveraged online streaming
Created Standalone rental boxes
Located in high traffic areas
Netflix was adaptive in it’s model to reach consumers

11. Netflix Timeline Mail Order Subscription
Created standalone rental boxes
Approach Blockbuster
Started Online Streaming
Adapted to consumer trends

12. Netflix Timeline Netflix was better at adapting to consumer trends
Mail Order Subscription
Created standalone rental boxes
Approach Blockbuster
Started Online Streaming
Adapted to consumer trends
Netflix was better at adapting to consumer trends

13. What should Blockbuster have done?

14. Develop streaming platform
alternatives
Status Quo
Stay the course and ignore the disruptor
Ex: What happened
Develop streaming platform
Build an online streaming platform
Ex: Blockbuster Online
Acquire Netflix
Acquire an existing online streaming company
Ex: Acquire Netflix

15. Alternative 1 Pro Con Status Quo
Erode customer base
Innovation
Consumer Trends
Risk Averse
Cost effective
Status Quo
Stay true to course and ignore the disruptor.

16. Alternative 2 Pro Con Develop streaming platform
Speed
risky
Capital Intensive
Quality
Control
Develop streaming platform
Build an online streaming platform.
Ex: Blockbuster online

17. Alternative 3 Pro Con Acquire Netflix
Speed
New Revenue Stream
Resources
Capital intensive
Integration
Acquire Netflix
Acquire existing online streaming company.

18. Decision criteria Value Proposition Core Competency Adaptability
Stay true to your value proposition
Value Proposition
Core Competency
Financial Health
Adaptability
Adapt to changing consumer and technological trends
Play to your strengths
Ensure profitability and growth

19. Adaptability Develop Streaming Platform Status Quo Acquire Netflix
Improves consumer experience
Meets changing consumer trends
Status Quo
Does not meet consumer trends
Not adaptable to technology changes
Acquire Netflix

20. Adaptability Develop Streaming Platform Status Quo Acquire Netflix
Improves consumer experience
Meets changing consumer trends
Status Quo
Does not meet consumer trends
Not adaptable to technology changes
Acquire Netflix

21. Develop Online Streaming Platform
Value proposition
To entertain and delight customers with a wide variety of available options.
Meets
Develop Online Streaming Platform
Status Quo
Acquire Netflix

22. Develop Online Streaming Platform
Core competency
Physical Stores
Store Operations
Great Movie Selection
In-Store Experience
Does not meet
Develop Online Streaming Platform
Meets
Status Quo
Acquire Netflix

23. Status quo: financial health

24. Develop online streaming: financial health

25. Acquire Netflix: financial health

26. Risk of each alternatives
Status Quo
Lack of innovation to improve customer experience
Develop streaming platform
Slow growth and reduction of market share to competition
Acquire Netflix
Capital intensive for acquisition and integration of platforms

27. recommendation Status Quo “what they did” Develop streaming platform
i.e. Blockbuster online
Acquire Streaming cia.
i.e. Netflix
Value Proposition
Core Competencies
Financial health
Adaptability

28. Acquire Netflix to adapt to changing consumer and technological trends
Recommendation
Acquire Netflix to adapt to changing consumer and technological trends

29. appendice

30. Customer base