Business Administration Capstone
1. Assess how globalization and technology changes have impacted the corporation you researched.
Blockbuster has evolved throughout the 25 years that the company has been in business. Blockbuster initially provided home videos and video games rentals and throughout the years added DVD rentals, DVD by mail, streaming, video on demand and Cinema Theater. The company merged with Viacom in 1993, but was unsuccessful so Viacom bought Blockbuster for $8.4 billion dollars. Blockbuster also moved business across the globe into the United Kingdom and became the number one video store in the United Kingdom. In the year 2000 Blockbuster turned down the opportunity to purchase Netflix which has become one of the biggest on-demand internets streaming media available to viewers across the globe. Blockbuster was at an all-time high in sales in 2004 employing over 60,000 people with over 9,000 chains of stores. From 2003 to 2005 Blockbuster loses 75% of its market value as competition increases from the likes of Netflix and Redbox. (Marcus, Schaefer 2011) By 2010 the competition from Netflix drove sales for Blockbuster down causing the company to suffer and file for Chapter 11.
Globalization may be defined as the integration of the world’s people, firms and government (Green n.d). Technology has expanded and made everything assessable via internet, which we can now be accessed through computers, laptops, tablets, cell phones, and game systems. With laptops, tablets and cell phones being so mobile, it gives people the opportunity to look at anything on the internet, anywhere at any time which lessens the need of going to a store to purchase or rent DVD’s. With the exp