Times have changed, and the business models governing companies a unilateral way there have forced an adaptation to technologies and market trends to continue in this way in a successful way. Undeniably, one of the most important factors that gave this result is that Blockbuster is not coupled to the new market trends, refusing to change its business model to new technology revenues, and most importantly, did not pay attention to the needs of its consumers. Although the business model Blockbuster rents was innovative at the time and later, like its competitor Netflix, income raided by mail, but not daring to adopt new technologies online income, hosted in the cloud timely, as they failed to take critical questions that have saved the company. Netflix, and even companies like Sony, bet stores online video hosted on the cloud, with a proposal within your PlayStation 3, then why not consider this trend Blockbuster on time and took it?
Sometimes organizations including businesses, agencies, and even people grow attached to their working methods, resulting in that they cannot accept new technologies and business models that work in your market. This line of thinking must be avoided especially in these times of radical changes in consumer behavior. Always be attentive to the needs and market trends. Only that way can stay ahead and prevent a market previously dominated by fear is lost or ignorance to new technologies.
“ Absorptive capacity theory examines the extent to which a firm can recognize the value of the new external information, assimilate it, and apply it toward achieving organizational goals” (Cohen & Levinthal, 1989, 1990). This means that if Blockbuster would have absorbed the new technology and change to the new trends, they might still be in business. These are some of the solution that I think would of help Blockbuster. Making a diagnosis of the