A good strategic manager understands just what her/his organization is capable of doing given the current competitive situation and the evolving technology in the industry. This discussion puts you in the place of a strategic manager and forces you to consider the impact of technological change on the companies in the movie rental industry.
Discuss the evolution of movie rental technology. Do you think that a single technology type will dominate the industry like VHS and DVD technology did in the past?
If you think there will be multiple technology formats for movie media, how will this affect competition in the industry?
What key resources and capabilities does Netflix possess? What is its core competence? Is it the source of a sustainable competitive advantage?
What must a company like Netflix do to remain competitive?
Do you think that Blockbuster can remain viable going forward? If so, how?
Are there any key success factors in this industry? If so, what would they be?
What would you do if you were the CEO of Netflix? What would you do if you were the CEO of Blockbuster?
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