NETFLIX vs BLOCKBUSTER: the different between innovation and term at the time

Netflix and Blockbuster are organizations that satisfying humans need and desires.

To maintain these Organizations of the market they must carry some important points in,

for example: thinking in long-run about the principal purpose of the organization, then

attempt to determine “mega-trends” and finally construct a method round them. These three

points were the points that Netflix used to have goods and benefits in the organization and

Blockbuster went wrong.

Netflix and Blockbuster start as a DVD rental company. Since this moment, both

organization starts their long-run to please their customers. The organizational design is

very important to this case because this process of uses organizations to achieve its goals.

Both were in different companies, but they had the same goals that was offering DVDs in a

rental environment. Schumpeter says in her article that predicts the long run of many times

isn´t a good idea because the prediction can change into one or two years.

In the same case, innovation and organizational change have an important valued

because organizations have been in their present. To Netflix and Blockbuster, it was a big

problem, because the time is evolving, changing and becoming more complex. For

example, Netflix such new ideas to the innovation in his environment. This idea was the

streaming much earlier but using the internet. On the other hand, the reason why

Blockbuster lost their customer was the Pride, because when other whirlwinds of change

swept through the movie and video industry, Blockbuster stuck in their mentality.

Managers are an important element for a formation of organizations. The managers

must point the control, make innovation and be efficient. In this case, an organization is
effective if they it can secure scarce and valued some skills and resources from outside. In

these cases, the company streaming facilities began to be supported on different methods.

For example: they implemented the subscription since 2007 and with an intelligent form,

they implemented at some minimum subscribers frees if 7.99 dollars/monthses. And the

problem with Blockbuster was that their managers don’t take advantage of the online

revolution because they were a retail-rental company, not a technology company and they

said that they don’t need to mix both elements.

To conclude, the way how organizations, use their human resources, technology

and the method determines the value of the different organization. The union of many

persons working together to produce goods and services make more values than the people

to make it alone. Even though Netflix and Blockbuster had a similar work or goals, the

different between order, production, inputs, outputs and the work of managers made the

discrepancy point. The error of Blockbuster war that they don’t want to make a change in

their organization and they prefer to stay in the past and don’t thing in the innovation of the

world. On the other hand, Netflix decided to implement the subscription option and have

connections with the future and other organizations.