Blockbuster Stores Shuttered Their Doors but Netflix Is Still Growing

question 150

Multiple Choice

Blockbuster stores shuttered their doors but Netflix is still growing. Both companies participated in the video rental business. Netflix evaluated the lifestyle needs of video customers, understanding that time, family, and work obligations called for more convenient methods to receive video entertainment. Netflix embraced the opportunity to stream videos directly to customers and create their own content. The company also managed to keep customer costs down, by passing along the savings it realized in labor. Blockbuster did not pay enough attention to competitor movements, permitting Netflix to quickly capture video market share. Which external environment probably had the least effect on Netflix's success?

• A) Social environment
• B) Competitive environment
• C) Economic and legal environment
• D) Technological environment

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Definitions:

Organizational Culture

The set of shared values, beliefs, standards, and practices that characterizes an organization and guides its employees' behaviors.

Shared Beliefs

Common values or perceptions held by members of a group, team, or organization that influence their behaviors and decision-making.

Behaviour Guide

A framework or set of instructions aimed at shaping or modifying human actions.

Rational Persuasion

A method of influencing others through the use of logical arguments and factual evidence.