Blockbuster Video

http://www.nytimes.com/2010/09/24/business/24blockbuster.html?src=busln

In the world of video rental Blockbuster had finally fallen by filling for chapter 11 bankruptcy. I remember 7 years ago driving around my hometown in Massachusetts, seeing 5 Blockbusters in a 10 mile radius, now there is only 1 and it's struggling. There are barely any movies in the store now and you can tell the employees know their company is struggling. The fall of Blockbuster is a classic example of a company not doing a good job with the company strategy. They neglected to take the treat of netflix and redbox seriously. They were the clear industry heavyweight years ago, but they let their ego get to them.

Blockbuster could have easily implemented an online version of their company much sooner. They had resources to do the project but simply didn't. This case is the clear opposite of ZARA. ZARA is an industry leader in its retail segment and chose not implement new technology. Their gamble paid off and they remained the leader. However, now ZARA is starting to incorporate internet sales in its biggest markets, going against their original business philosophy.

Blockbuster should have seen what was coming in their industry. 10 years ago they had all the capital to institute and implement an online store like netflix, but they were resistant technology, and how technology could alter their industry