Blockbuster Inc. is preparing to file for bankruptcy in the next few days. The once very prosperous retailer announced earlier this year that it would close nearly 10% of its stores. According to filings with the U.S. securities and Exchange Commission, it is carrying approximately $900 million in debt. Customers have moved from renting films at the store to using the various online services available such as Netflix or ordering movies from their local service provider (ex. Shaw on Demand). Blockbuster has attempted to introduce a movie download service to move beyond retail locations, however, it is too little too late, as that service greatly lags behind Netflix’s offerings. Blockbuster should have reacted to the competition much more promptly, as they could have potentially bought a share of Netflix before they expanded their operation. This article is a perfect example of how a business must be willing and flexible to change if it wanted to survive in the competitive marketplace. It also shows how a small business can take market share away from larger corporations if they are more flexible and know how to use their strengths to match consumer wants.
Below is a link of the article:
http://www.vancouversun.com/business/Online+model+rise+puts+video+chain+peril/3566697/story.html 