In Will Latu‘s post about Blockbuster, he truly exploits the largest mistake that Blockbuster has ever made. In 2000 blockbuster had a chance to buy Netflixs for $50 Million; and “ The company is now worth $28 billion … slightly less than the $30 billion market value for television network owner CBS“(La Monica) Personally I believe that this failure of a decision that Blockbuster made was because of the lack of technology innovation at this time. Although now, we see in the very long run of scales, technology has widely swept modern society and adjusting consumer behaviour creating Netflix to trump Blockbuster. Latu illustrates that this is a “Prime example of the consequences of failing to adapt to consumer trends”(W.Latu). This mistakes caused Blockbuster to close 300 corporate stores. This time line shows how Blockbuster’s ignorance caused the company to plummet at an exponential rate over the past 12 years. I feel if Blockbuster had not of foolishly made a deal with Enron in 2000 for a “20-year deal to deliver on-demand movies”(Carr) this declination of the company would have been less exponential. Reluctantly for Blockbuster… Enron files for bankruptcy because of an accounting scandal in 2001. 2002 was the inflection point of the companies demise when Block buster “posts a $1.6 billion loss”(La Monica). I completely agree on Will opinion on blockbuster and to add to what Will brought to us I did some external research to emphasize his point.
Sources
“Vive Le Streaming! Netflix Enters France.”CNNMoney. Cable News Network. Web. 9 Nov. 2014. <http://money.cnn.com/video/investing/2014/09/15/netflix-takes-over-france.cnnmoney>.