Netflix was able to gain a competitive advantage over its chief rival Blockbuste

Question

Netflix was able to gain a competitive advantage over its chief rival Blockbuster. Discuss the Netflix value proposition and how it successfully gained and advantage over Blockbuster.

Identify and describe some of the technology innovations that Netflix was able to exploit and how these innovations contributed to competitive advantage.

Netflix is often used as an example of disruptive innovation. Using the LIRC and the internet, research the concept of “disruptive innovation” and then discuss how Netflix fits the model of disruptive innovation. Consider what role technology played in achieving the disruptive innovation that provided Netflix with a competitive advantage.

Explanation / Answer

BLOCKBUSTER was eatablished succesfully in the rental movies and video game business but the problem came when it does not move forward or changed itself where technology and consumer both moves forwards as a result Netflix uses its as opportunity and gain competitive advantage over it.

*Blockbuster failed to adopt or accept new methods and technology with changing senario.

*Netflix started business by mail by sending Dvds on mail where as blockbuster left far behind.consumer find it more convenient and it save thier time .blockbuster like stubbornly clinging with old methods and techonologies.

*Netflix open itself to be adapted of any changes and be ready for threats and opportunity in the external environement.

*Netflix uses all those methods which is convenient for consumer it makes customer thier top priority.

*netflix uses advanced and new technologies.Its uses social media to makes its space and grab more and more customers.

*Netflix has a high dynamic range which deliver richer colours.

"Disruptive innovation " is a term uses for netflix because its just a small company how came in market and kills its all big rivals and competitors by following simole rules of business .Netflix creates its own new market and disrupts existing one.netflix offers to its customers high quality ,low price,more convenient where as existed market leaders like bloclbuster failed to provide .netflix initiate itself as a smaller company therefore it was overlook by its competitors which proofs as an advantage for netflix.

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