Environmental Factors Leading To Blockbuster's Success

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During winter break, the new Star Warts movie came out, and I went to the theater to check it out. Like many other grown adults, the franchise brings memories from childhood. Sometime in the early 90's, I watched Episode IV for the first time, and I still remember the local video rental store where my older brother picked a VHS copy for us to watch that afternoon. Just like my memory of watching “A New Hope” for the first time, video-rental stores are a thing of the past; with Blockbuster being the company that sticks out the most in my memory, and the focus of my post. In terms of this discussion, I think that the two most applicable categories of environmental factors that contributed to Blockbuster's demise were technology/innovation & …show more content…

(Lamb, 2018, 60) As for competitive factors, they can be described as the number and size of other firms in your market that provide like goods or services (Lamb, 2018, 66). Initially, Reed Hastings approached Blockbuster and tried to pitch a partnership, but was soon rejected and dismissed as a minuscule competitor. (Satell, 20, 14, para. 1) Although small and somewhat niched in it's early stages, Netflix provided a very innovative option for consumers: it had great variety of content, no late fees, Internet-based platform, and an easy delivery service. Although it provided the same service as Blockbuster, Netflix, was a company that focused on the experience of its customers. While Netflix was busy making a name for itself and growing, Blockbuster ignored its newest competitor's model, and continued to operate as usual. Skip a few short years ahead, and Netflix crept up to Blockbuster as a major competitor by the mid 2000's. (Satell, 14, para. 13)Additionally, near 70% of the US population had ease of access to the Internet, making Netflix's model more and more accessible to a fast growing audience. (Perrin etc, 15, fig.

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