Blockbuster Strategic Drift

How Netflix killed Blockbuster

Blockbuster was an American company founded in 1985 operating a chain of VHS and then DVD and video game rental stores. It disappeared in 2014.

Many believe that the growth of the Internet and Netflix destroyed Blockbuster’s business. But what they don’t always know is that they decided not to invest some of its huge financial resources to go online and declined several offers to buy Netflix (for only $50 million), believing that they had a fantastic business model that they didn’t want to disrupt for a “maybe business” in the online world.

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