Netflix Reaction Paper

Netflix Responding to Blockbuster Again The concept covered in the discussion on Netflix responding to blockbuster is an interesting topic. Netflix is a great display case of disruptive innovation. Its DVD-by-mail turned the motion-picture show rental business on its head and helped push Blockbuster into bankruptcy. As a start-up and outsider, Netflix was able to see that Blockbuster underserved many a(prenominal) users. In response, Netflix created a business that offered more affordability, accessibility and availability to these under-served customers.Netflix saw this as a great opportunity and with customers busier lifestyles, demand and the advancement in the technology, Netflix make a move and serve the underserved customers of Blockbuster. Netflix is definitely the most successful of these Blockbuster-replacement usefulnesss and has been steadily gaining power over the years. They started out as a DVD rentals-by-mail service and business has been booming ever since they in troduced a streaming subscription service as well. The rise of internet media also raised the success of Netflix.Blockbusters demise was link to the success of Netflix. The business model of Netflix focuses on addressing unmet needs on the part of consumers. The business model for video rental industry back then in early 2000 was to pay-per-rental. Customers were frustrated by late fees and not being able to find their movie of choice when they wanted it. Netflix used a design ruler that any company aspiring to succeed at disruptive innovation must adopt Think Big. Start Small. Fail Quickly. Scale Fast. Think Big.Netflix move the big idea of streaming video, even though it would render obsolete its mail-based system for distributing DVDs. By contrast, most companies think smallthey try to protect their alert business even if they can see a long-term threat from the Internet or other technological disrupter. These companies tell themselves theyre making incremental improvements, only to wake up one day and find the world has changed. When that day comes, they switch to panic mode, as Blockbuster did once it realized Netflix had alter DVD distribution. Start Small. Netflix started with lots of small projects.This way, the company would know the market reaction and work out the kinks before going national. Fail Quickly. When early efforts at streaming video looked iffy, Netflix adopted the poker players mantra that most money is lost early in a hand, when the tendency is to hope that something costly will materialize even though reason suggests otherwise. Netflix folded, saving its money for the day when it finally got a good hand. By contrast, most companies keep acting bad hands far too long, partly because those involved know theyll get tarnished by association with a failure.Scale Fast. Netflix is now scaling streaming video fast, maintaining the lead it worked so hard to build over competitors. Numerous companies have, however, won early battles and lost the war at this stage of innovation. Innovations are successfully real but never find a home because, unlike Netflix, the company isnt willing to attack its core business. Its worth noting that Netflix is still in truth much a work in progress and should continue its quest to bold innovations in order to maintain its current competitive advantage.