When Videocassette Recorders First Became Popular in the Mid-1980s, a New

question 80

Essay

When videocassette recorders first became popular in the mid-1980s, a new form of mom-and-pop (i.e., small) business sprang up across the country: the video rental store. At the time, new videotapes of popular movies cost anywhere from $80-$200, and as the popularity of videocassette recorders grew, these small, independent video rental stores grew rapidly to meet the demand of consumers for inexpensive rentals of movies. There was considerable competition among them to be the first to have expensive, new movies available for rental. However, some stores disappointed customers by not having enough copies of new films when they were most in demand, i.e., upon their initial release on video. Within about 5 to 8 years of competition, most of these mom-and-pop video rental stores were ultimately put out of business by the large regional and national chains such as Blockbuster. Using the concept of sustainable competitive advantage along with the four conditions required to produce it, explain how such a transition from hundreds of independent mom-and-pop video stores to a few national chains could have taken place so quickly.

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Definitions:

Progressive Presidents

Presidents who advocated for reforms to address inequities, corruption, and other societal problems during the Progressive Era in the early 20th century.

American Power

The influence and capability of the United States in terms of economic might, military strength, cultural impact, and political leadership on the global stage.

Foreign Policy

Foreign policy refers to a government's strategy in dealing with other nations, including its diplomacy, military actions, and economic relations.

Progressive Era

A period of widespread social activism and political reform in the United States from the 1890s to the 1920s, aimed at eliminating problems caused by industrialization, urbanization, immigration, and corruption in government.