Taking a step back, aside from heavy debt and boardroom politics, Blockbuster's mistake seems to be ignoring its strategic assets (e.g. brick and mortar setup, leadership without digital business experience) and instead choosing to copy Netflix's digital business for the sake of competing.
Do you think Blockbuster could have explored a better business model or offering that used their assets better? (vs Total Access)
It is very hard to evaluate that strategy from today because the CEO initiated it but was ousted before we could say if the strategy was successful or not.
Blockbuster's brick and mortar stores were both an asset and a liability because Blockbuster didn't own them. They belong to small businesses who invested significant money (significant for them) to build them. So, Blockbuster couldn't just, say, switch to the online streaming model – they could have sew the company. They had to take it into account when making strategic decisions.
I believe that Total Access was a good idea even though it was loss-making. It was one of the first 'omnichannel' solutions which, as we know now, are loved by customers. And Netflix couldn't use the option.
I also think that Blockbuster could capitalize on the asset somehow, but I don't have enough information to speculate.
Taking a step back, aside from heavy debt and boardroom politics, Blockbuster's mistake seems to be ignoring its strategic assets (e.g. brick and mortar setup, leadership without digital business experience) and instead choosing to copy Netflix's digital business for the sake of competing.
Do you think Blockbuster could have explored a better business model or offering that used their assets better? (vs Total Access)
(e.g. movie cinema)
Thank you for the comment.
It is very hard to evaluate that strategy from today because the CEO initiated it but was ousted before we could say if the strategy was successful or not.
Blockbuster's brick and mortar stores were both an asset and a liability because Blockbuster didn't own them. They belong to small businesses who invested significant money (significant for them) to build them. So, Blockbuster couldn't just, say, switch to the online streaming model – they could have sew the company. They had to take it into account when making strategic decisions.
I believe that Total Access was a good idea even though it was loss-making. It was one of the first 'omnichannel' solutions which, as we know now, are loved by customers. And Netflix couldn't use the option.
I also think that Blockbuster could capitalize on the asset somehow, but I don't have enough information to speculate.