During the 1980s and 1990s, Blockbuster dominated the US home video rental market. However, the emergence of Netflix in 1997 with its ‘rental by mail’ model challenged Blockbuster’s business model (and market dominance). Blockbuster’s market position was further weakened when Netflix began to stream video content directly to consumers’ computers. In this case study, you are required to prepare a 3000-word report that examines the central question of how “Netflix beat Blockbuster Video”. This assessment requires students to demonstrate understanding and application of all three elements of the Exploring Strategy Model; Strategic Position, Strategic Choice and Strategy in Action. You should specifically address the role of technological diffusion, first movers and followers, innovation and whether Netflix will continue to remain as the dominant online streaming provider in the US
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