Global Communication Benchmarking Competition: Ford Term Paper

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Indeed, according to later reports, this is indeed what the company has done. Whether this will have the desired effect or will simply drive Blockbuster further away from their competitive edge, remains to be seen. Indeed, Netflix has the advantage of diversity in terms of its rental titles. The Johnson piece reports that Blockbuster was planning to gain customers by offering better Internet deals than Netflix. In retrospect, the problem is however that the deals are so excellent that they badly affect Blockbuster's revenues (Cruise, 2007). Indeed, the company's current strength - its in-store customers - is being undermined by its efforts to increase its online customers to compete with Netflix.

B) Blockbuster believes that it can gain competitive advantage over Netflix by offering better deals to their in store customers, which could also entice online customers away from Netflix (Cruise, 2007).

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Such deals include in store coupons and free movie swaps. In addition, the company offers in store merchandise to visiting customers in an attempt to mitigate lost online revenue.

According to Cruise, Blockbuster needs a different strategy if it is going to remain competitive very long into the future. A suggested strategy is offering free wireless in all Blockbuster stores instead of cellular modem laptops. In addition to mitigating the high costs of the laptops, this free service will draw additional customers not only to the physical store, but also to Blockbuster's online facility. Such a targeted strategy, rather than a more general one, is needed to ensure the future health of the company......

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