Blockbuster Netflix Businesses Failed Succeeded While Blueprint

Blockbuster NetFlix businesses failed succeeded While blueprint checklist follow guarantee success a business When Netflix officially launched in the final years of the 20th century, Blockbuster was the undisputed king of movie rentals. The latter had operated since the early 1990s and was instrumental in supplying home entertainment to millions of people across the United States.

Yet developments on the part of Netflix -- as well as those within the industry as a whole -- would singularly ensure the upstart's success while guaranteeing the latter's disaster due to organizational behavior on the part of both Blockbuster and Netflix. It would be difficult to prove that both Netflix and Blockbuster did not have the same objectives -- to deliver quality entertainment to people in the form of movies that they could enjoy from the comfort of their homes.

The companies had different visions on how to best achieve this end: Blockbuster believed it could do so by issuing punitive measures to customers whereas Netflix sought to absolve customers from such ramifications. The missions of each organization were accordingly respective as Netflix innovated methods of carrying out its objectives whereas Blockbuster remained firmly entrenched in its practices -- until it was too late. B. One can successfully propound the notion that the differences in leadership style between Netflix and Blockbuster effectively presaged their respective triumph and destruction.

The management at Netflix utilized a transformational style of leadership in which innovation and results were desired and prioritized. Blockbuster, however, relied on a transactional style of leadership in which the individual transactions of video rentals wee the standard by which the organization and its policies were structured. As such, Blockbuster's business model was extremely staid and standard with that of the industry in general; it charged higher amounts for newer rentals and exacted costly late fees to customers. The transformational approach of Netflix, by contrast, was readily apparent.

It developed a new model in which late fees were excised, customers could keep rentals for as long as they wanted, and membership was based on monthly premiums that today are less than two Blockbuster rentals (fore new releases). More importantly, perhaps, it adopted the technology for streaming which took advantage of the online/internet phenomenon. The result was that customers no longer had to wait to watch movies, and could watch them from virtually anywhere there was an internet connection.

These developments helped to transform the home video watching industry, and are a testament to the efficacy of Netflix's transformational leadership style and the lack of effectiveness of Blockbuster's transactional style of leadership. The overall structure and culture of Netflix was crucial to its success, whereas these same two factors were integral to the lack of success that Blockbuster encountered during the same timeframe. Netflix was willing to take chances and to embrace an agile approach to it model and organizational structure.

It initially started off by mailing DVD's and evolved to streaming movies -- which reduced its overhead and the costs that customers have paid. It has continued this agility by increasing the devices that one can stream its products on, and by adding original programming to its burgeoning list of.