Blockbuster is often held up as a poster child for companies left behind by disruptive innovation they had the world at their feet, dominating the video rental market with thousands of outlets across the world then video streaming came along and it all fell apart netflix, the online subscription. Blockbuster: leadership & strategic failures scott e morris mgt 460 professor robin mccart-brown may 30th, 2011 abstract this research paper will explore and analyze the leadership and strategic failures that occurred within blockbuster incorporated. Business lessons from blockbuster's failure with blockbuster's chapter 11 filing looming, it seems a fitting time to reflect on what went wrong and what businesses can learn from it many would simply label blockbuster a casualty of schumpeter's theory of creative destruction, and in many cases it is, but the fact remains that its current. Blockbuster, ironically enough, was the product of a tech advance entrepreneur david cook founded the outfit in 1985 a computer programmer, cook noticed that typical movie-rental-store owners had no idea what they had in stock.
Blockbuster, the games and dvd rental chain, is set to enter administration for the second time this year in a move that will put 2,000 jobs at risk the business was one of the most high-profile. The harvard business review article blockbuster's former ceo on sparring with an activist shareholder by john antioco describes his own, first hand, challenging journey of being chief executive. Blockbuster's fatal flaw wasn't one of intelligence or capability, but a failure to understand the networks that would determine its fate.
The failure of blockbuster is really interesting to me - because so much information is available, it's great to learn from blockbuster is a great example of a business that failed to identify. A few months ago, blockbuster announced that it will close all of its remaining us stores, about 300 of them this has been a long time in the making, and there is still a lot you can learn from it prior to netflix, blockbuster thrived on its use of bad profits bad profits, a term from. Blockbuster was reimagined as a convenience store the problem with this strategy is that it never acknowledged, let alone addressed the fundamental promise and peril of the business: if people.
Failure to recognize timing: blockbuster actually responded to all of its perceived competitive threats with similar models, but it was too late it eventually tried a dvd-by-mail service, rental kiosks similar to redbox, and put up its own website for online streaming after acquiring a smaller player in the field [4. Why blockbuster failed the iconic blockbuster brand of video rental is closing the doors of it's last few stores i'm not sure if you have heard the news yet, but blockbuster video has just closed the last of their lingering video stores nationwide. Blockbuster failure blockbuster: leadership & strategic failures scott e morris mgt 460 professor robin mccart-brown may 30th, 2011 abstract this research paper will explore and analyze the leadership and strategic failures that occurred within blockbuster incorporated. Blockbuster llc, formerly blockbuster entertainment, inc, and also known as blockbuster video or simply blockbuster, was an american-based provider of home movie and video game rental services through video rental shops, dvd-by-mail, streaming, video on demand, and cinema theater.
Blockbuster one extraordinary example of the failure to innovate was one of the largest dvd rental companies, blockbuster with a huge high street presence and intense customer loyalty, blockbuster really was a household name. The long slow demise of blockbuster, filing for chapter 11, provides another example of how the failure to effectively respond to changes in the distribution of content can doom an enterprise.
The demise of blockbuster, and other failure fairy tales when big companies collapse, the story is never simple.