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Failure Analysis/Change Strategy: Blockbuster vs Netflix

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Failure Analysis/Change Strategy: Blockbuster vs Netflix
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Failure Analysis/Change Strategy: Blockbuster vs Netflix
Organizational Behavior Theories The organizational behavior theories which explains Netflix’s success are two; decision-making and systems approaches. Netflix made the monumental decision to become a virtual dvd rental versus a brick and mortor provided a solution in the company’s goal and vision to be ahead of technological advances in the industry. Netflix took on the systems approach in understanding and measuring the company’s input and output processes. Netflix uses the systems approach to integrate and drive processes in developing adaptive capacities, driving innovation.
Blockbusters organizational behavior theory focus was on scientific leadership. The company placed a great deal of focus on how to become more effective in the company’s brick and mortor business, redefining company objectives and direction. How employing this theory failed the company was the leadership decision to not pledge the same level or more focus on the click initiative which the company could not capture the needed momentum in becoming competitive with Netflix. Blockbuster could have had a more competitive edge over Netflix sustaining its presence in the industry if only the company could define better performance practices leveraging its click business over its brick and mortor presence.
Role of the organization on the Fail/Success
So how did an upstart company like Netflix tale down a giant like Blockbuster? It took a strong and innovative leader. “Netflix executives understood that an emerging technology was rapidly changing the delivery of movie rentals” (How Netflix Beat Blockbuster: An Exemplar of Emerging Technologies, n.d.) Reed Hastings founder of Netflix realized his company needed to enter into the industry with a strategy that embraced...

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