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

question 47

Essay

When videocassette recorders first became popular in the mid-1980s,a new form of "mom and pop" small business sprang up across the country: the video rental store. At the time,new videotapes of popular movies cost anywhere from $80 to $200. As the popularity of videocassette players grew,these small,independent video rental stores grew rapidly to meet the demand of consumers for inexpensive movie rentals. There was considerable competition between stores to be the first to have new movies available for rental. However,some stores disappointed customers by not having enough copies of new films when they were most in demand. Within about five to eight years of competition,most of these mom and pop video rental stores were ultimately put out of business by the large regional,and then 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:

Buyer's Conduct

Refers to the actions and behavior of a purchaser in a transaction, which may affect their rights or obligations.

Express Waiver

An express waiver is the voluntary, intentional relinquishment of a known right, articulated clearly and explicitly.

Cure Defects

The process of correcting errors or deficiencies in a product or construction project to meet the specified standards or contractual obligations.

Inspect Goods

The process of examining and verifying the quality, condition, and compliance of products with agreed-upon standards before acceptance.