Citation
How Blockbuster Failed at Failing
TL;DR
Eliminated late fees (40% of profit) attempting to compete
Analysis of Blockbuster's failed regeneration attempt (2004-2010) from business journalism perspective. Documents the strategic responses to Netflix disruption, investment in online services, and ultimate bankruptcy.
Provides counterexample to successful regeneration: Blockbuster had resources but incompatible root system. Brand associated with inconvenience, capabilities optimized for physical retail, customer relationships transactional not loyal.
Key Findings from Keyes (2013)
- Blockbuster launched online DVD service 2004 copying Netflix
- Eliminated late fees (40% of profit) attempting to compete
- Invested $200M+ in online infrastructure
- Filed bankruptcy September 2010