Times have changed, and the business models governing companies a unilateral way there have forced an adaptation to technologies and market trends to continue in this way in a successful way. Undeniably, one of the most important factors that gave this result is that Blockbuster is not coupled to the new market trends, refusing to change its business model to new technology revenues, and most importantly, did not pay attention to the needs of its consumers. Although the business model Blockbuster rents was innovative at the time and later, like its competitor Netflix, income raided by mail, but not daring to adopt new technologies online income, hosted in the cloud timely, as they failed to take critical questions that have saved the company. Netflix, and even companies like Sony, bet stores online video hosted on the cloud, with a proposal within your PlayStation 3, then why not consider this trend Blockbuster on time and took it? Sometimes organizations including businesses, agencies, and even people grow attached to their working methods, resulting in that they cannot accept new technologies and business models that work in your market.
This line of thinking must be avoided especially in these times of radical changes in consumer behavior. Always be attentive to the needs and market trends. Only that way can stay ahead and prevent a market previously dominated by fear is lost or ignorance to new technologies. “ Absorptive capacity theory examines the extent to which a firm can recognize the value of the new external information, assimilate it, and apply it toward achieving organizational goals” (Cohen & Levinthal, 1989, 1990).
Business Plan Market Marketing Analysis
Introduction To evaluate and analyse a "professionally made" marketing plan requires the evaluator, to very critically and closely point out the strengths of the plan, yet also point out parts of the plan that are irrelevant or are in need of improvement (weaknesses). Of course, as this is a professionally written marketing plan, the positive aspects of the plan will vastly out-number the negative ...
This means that if Blockbuster would have absorbed the new technology and change to the new trends, they might still be in business.
These are some of the solution that I think would of help Blockbuster. Making a diagnosis of the external environment of the organization. With the boom in Internet business something you had to take into account new media, marketing and distribution. Blockbuster was slow to implement e-business strategies, and when they realized it was too late. John Antioco must present their innovation strategies measurably in both benefits and cost reduction, although these were to long term, as the shareholder at the time saw these strategies as an expense. Predicting the use of high-speed Internet in the United States, a trend that has gone global. Today a professional, can watch movies online via Netflix, in High Definition, without paying a fortune.
References
Muehlhausen, Jim. “Want a Better Business, Improve Your Business Model.” Business Model Institute Blockbuster Misses a Golden OpportunityAgain Comments. Business Model Institute, n.d. Web. 26 Nov. 2012. <http://businessmodelinstitute.com/blockbuster-misses-a-golden-opportunityagain/>.
Schuster, Mike. “How Netflix Succeeded Where Blockbuster Failed.” Yahoo! Finance. 27 Apr. 2010. 26 Nov. 2012 <http://finance.yahoo.com/news/pf_article_109382.html>.
