Netflix and Blockbuster Battle for Market Leadership

Case Analysis

Competition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership

Luis A. Alvarado

Business 495

Instructor Dr. Schuetz

May 27, 2012

Table of Contents

Introduction ………………………………………………………………..................................... 3

Background ………………………………………………………………………………………… 4

Analysis ……………………………………………………………………………………………… 7

Conclusion ………………………………………………………………………………………….. 12

References …………………………………………………………………………………………. 13

Introduction

Over the years, technology has grown rapidly to offer opportunities to the consumer. To keep up with the consumer demands, companies have adapted to the consumer needs. Companies are successfully creating a new way of enjoying different forms of media from digital video discs, videos on demand, to streaming. The movie rental is the most popular way to watch movies without going to a movie theater. All companies have different strategies on how they want to stay on top of things, stay competitive, and use technology to stream line process, increase production and increase effectiveness. With no doubt a company’s strategy is aimed at either at providing a product or service that is unique from what competitors have to offer or at developing competitive products or services that competitors cannot quite match making them more desirable for the customer.

The competitive forces of the movie rental industry, which mainly come from rivalries and suppliers, are relatively strong making this industry highly competitive. Therefore, Netflix and Blockbuster have become the two leading companies in the rental movie industry and are the major rivals. First, this case analysis essay will give an overall analysis of both industries, identifying the upcoming trends, addressing the competitive factors, the driving forces, and the key success factors of this industry. Furthermore, it will discuss Netflix and Blockbuster strength and weaknesses, external market...