The Rise of Netflix and the fall of Blockbuster Essay - 550 Words

The Rise of Netflix and the fall of Blockbuster (Research Paper Sample) Content: NameTutor Course DateThe Fall of Blockbuster and the Rise of NetflixFounded in 1985, Blockbuster dominated the video rental industry for close to two decades after its formation. In 1990s, Blockbuster chains were the leading giants in the industry, enjoying more than half of the overall market share (danielwatrous.com). In 2000s, however, the company's prominence began to decline due to increased competition from its rivals. Meanwhile, one of its closest competitors, Netflix, was growing rapidly overtaking Blockbuster as the market leader. By 2010, Blockbuster filed for a bankruptcy declaration in the effort to salvage its sinking ship. Nevertheless, its performance continued to dwindle over the next two years, leading to the closure of its last store in 2013. Did Netflix take advantage of Blockbuster's mistake to force it out of the market? This essay evaluates how Netflix worn against Blockbuster by providing their products at the right place.Although Netflix was founded at such a time when Blockbuster ruled the market, it identified an opportunity that Blockbuster had not utilized. In 2002, Netflix launched a DVD-mailing service that delivered videos to its clients through the mail. Their customers were overwhelmed by the service since it increased the place utility of the movies. Customers were no longer required to visit a movie rental shop to get the service as movies would find them right in their homes. As a result, the newly formed Netflix increased its customer base from 600,000 to over 3 million within a period of 2 years (danielwatrous.com). On the other hand, Blockbuster was adamant to introduce DVD mailing service until 2004. By the time Blockbuster introduced its mail-in service, Netflix had already built customers loyalty. For this reason, Blockbusters mail-in service did not influence Netflixs thriving business in DVD mailing.Clearly, Netflix out did Blockbuster by providing DVDs at the convenient place for the custome...