“FORMATIVE ASSESSMENT 1 [100 Marks] Read the extract below and answer ALL the questions that follow The internet didn’t kill Blockbuster, the company did it to itself. The video-rental company Blockbuster was at its peak in 2004. They survived the change from VHS to DVD but failed to innovate into a market that allowed for delivery (much less streaming). While Netflix was shipping out DVD’s to their consumer’s homes, Blockbuster figured their physical stores were enough to please their customers. Because they had been the leader of the movie rental market for years, management didn’t see why they should change their strategy. Back in 2000, the founder of Netflix Reed Hastings proposed a partnership to the former CEO of Blockbuster John Antioco. Netflix wanted Blockbuster to advertise their brand in the stores while Netflix would run Blockbuster online. The idea got turned down by Antioco because he thought it was ridiculous and that Netflix’s business model was “niche business”. Little did he know that Hasting’s idea would have saved Blockbuster. In 2010 Blockbuster filed for bankruptcy and Netflix is now a $28-billion-dollar company. The Forbes article aptly describes what exactly happened to Blockbuster, “The internet didn’t kill Blockbuster, the company did it to itself.” Source: (www.valuer.ai) Discuss how Blockbuster failed to innovate at the time; and how they could have restored brand equity. A brief introduction is included. A good understanding of factors that lead to companies failing to innovate, is essential(500 words) “ – Eightball.com

“FORMATIVE ASSESSMENT 1 [100 Marks] Read the extract below and answer ALL the questions that follow The internet didn’t kill Blockbuster, the company did it to itself. The video-rental company Blockbuster was at its peak in 2004. They survived the change from VHS to DVD but failed to innovate into a market that allowed for delivery (much less streaming). While Netflix was shipping out DVD’s to their consumer’s homes, Blockbuster figured their physical stores were enough to please their customers. Because they had been the leader of the movie rental market for years, management didn’t see why they should change their strategy. Back in 2000, the founder of Netflix Reed Hastings proposed a partnership to the former CEO of Blockbuster John Antioco. Netflix wanted Blockbuster to advertise their brand in the stores while Netflix would run Blockbuster online. The idea got turned down by Antioco because he thought it was ridiculous and that Netflix’s business model was “niche business”. Little did he know that Hasting’s idea would have saved Blockbuster. In 2010 Blockbuster filed for bankruptcy and Netflix is now a $28-billion-dollar company. The Forbes article aptly describes what exactly happened to Blockbuster, “The internet didn’t kill Blockbuster, the company did it to itself.” Source: (www.valuer.ai) Discuss how Blockbuster failed to innovate at the time; and how they could have restored brand equity. A brief introduction is included. A good understanding of factors that lead to companies failing to innovate, is essential(500 words) “

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