The ongoing battle for DVD rental supremacy has turned into a slaughter.  As Blockbuster continues to close stores and contemplate Bankruptcy, Netflix refuses to bask in their victory.  In fact, Netflix recently announced it would add Nintendo Wii users to it’s already impressive list of partners that includes Xbox 360, PlayStation 3 and TiVo.

As a staffing owner, this is a great time to begin to look at your firm and decide how you can dominate your competition in the same way Netflix has dominated Blockbuster. 

  • What innovative ways can you develop to provide your current services?
  • What uptapped areas (geography or market segment) could benefit from your services?
  • Are there any partnerships that you could develop that could help sell your services?

The best lesson you can take from Netflix is to never stop making your firm better.  Netflix has completely trounced their competition but they continue to innovate and gain market share.  Even if things are going good for your company–they can always get better!

0 thoughts on “Is your firm a Blockbuster or a Netflix?

  1. One of the stark differences between Netflix and Blockbuster recently are new releases. Blockbuster has made deals giving it exclusive rental of new releases for 28 days. Meanwhile, Netflix has gotten deals where they hold off offering new releases for 28 days. In return, they get more streaming titles and lower DVD purchase costs.

    At first glance, Blockbuster seems to be the big winner. After all, they can offer Avatar and other hits 28 days before Netflix can. In the long run, though, Netflix customers aren’t going to care that Movie X releases on a particular day. They’ll watch more streaming titles, will enjoy less price increases (thanks to lower DVD costs), and will be able to get the DVD quicker (lower DVD prices = more bought = more availability).

    In short, Blockbuster seems to be focusing on the short term (28 days after release) while Netflix is looking long term.

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