Answered: Evaluate the brand development strategy…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

See similar textbooks

Related questions

Question

Evaluate the brand development strategy that Netflix employed. With this in mind, suggest how Blockbuster could
have also changed their trajectory, by using Ma’s model of global competitive advantage or any other suitable
theory pertaining to global brand strategies.

Transcribed Image Text:The internet didn't kill Blockbuster, the company did it to itself. The video-rental company Blockbuster was at its peak in 2004. They survived the change from VHS to DVD but failed to innovate into a market that allowed for delivery (much less streaming). While Netflix was shipping out DVD's to their consumer's homes, Blockbuster figured their physical stores were enough to please their customers. Because they had been the leader of the movie rental market for years, management didn't see why they should change their strategy. Back in 2000, the founder of Netflix Reed Hastings proposed a partnership to the former CEO of Blockbuster John Antioco. Netflix wanted Blockbuster to advertise their brand in the stores while Netflix would run Blockbuster online. The idea got turned down by Antioco because he thought it was ridiculous and that Netflix's business model was "niche business". Little did he know that Hasting's idea would have saved Blockbuster. In 2010 Blockbuster filed for bankruptcy and Netflix is now a $28-billion-dollar company. The Forbes article aptly describes what exactly happened to Blockbuster, "The internet didn't kill Blockbuster, the company did it to itself."

Expert Solution