ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Failure to plan/Lack of strategy.
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Failed to satisfy the needs of customers
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Both answers are correct
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None of the above
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Detailed explanation-1: -It failed because of too much debt and changes in the industry. It had too many stores, Netflix created a better business model, and then Redbox kiosks and the whole digital phenomenon eliminated the need for consumers to go to a separate DVD store.”
Detailed explanation-2: -Netflix not only eliminated physical stores, saving on overhead costs, but it offered a subscription model-you never had to worry about returning a film late. Customers could now watch films as long as they wanted. Blockbuster thought customers wanted to walk into a store to pick up a movie and snacks.
Detailed explanation-3: -Netflix charges a monthly subscription fee, which allows customers to watch as many movies and TV shows as they want during that time. Overall, Netflix has primarily replaced traditional video rental services like Blockbuster due to its convenience, more extensive selection, and lower cost.
Detailed explanation-4: -The decision by Blockbuster to maintain both online as well as the brick-and-mortar platform was hasty. This is because Blockbuster overestimated its ability to compete with Netflix once it decided to go digital since it assumed it had a strong brand to compete effectively.