It's No Secret That Blockbuster™ Stores Have Closed, While Netflix™

question 300

Multiple Choice

It's no secret that Blockbuster™ stores have closed, while 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 utilize the Internet and smart TVs, to stream videos directly to customers. The company also managed to keep customer costs down, by passing along the savings it realized in labor. Blockbuster did not keep its eye on competitor movements, permitting Netflix to quickly capture video market share. In sizing up the situation, which external environment(s) 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:

Financial Budgets

Comprehensive plans that forecast a company's expected revenues, expenditures, and cash flows over a certain period.

Human Behavior

The study of how humans act and interact in different environments and situations.

Evaluating Performance

This involves assessing the efficiency and effectiveness of actions or operations, often in a business or work environment, to inform future strategy and improvements.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the costs associated with these materials for a specific period.