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Blockbuster&Netflix Essay

2065 words - 9 pages

Project Proposal

The proposed organizations for this project are Netflix and Blockbuster. This research project will demonstrate why the two companies changed to stay in competition. Additionally, this research project will demonstrate how technology obligates organizations to change their business model.
Blockbuster opened their first store in 1985 in Dallas, Texas and expanded to operate 6,500 video rental stores (Blockbuster, n.d.). The organization was a competitor in the small video rental stores by providing a wider selection of movies and game rentals. Because of the positive, public acceptance Blockbuster expanded quickly and opened stores across the nation, London and ...view middle of the document...

The public did not have a positive reaction to the changes and went back to their original business model of using one organization for video streaming and DVD services. Netflix was correct on making that change because the future in movie rental is in streaming media but the majority of the public is not ready for that change (Empson, 2011).
Images Of Change
According to the research done for this thesis both organizations fail to execute the required changes. Blockbuster fail to execute the change because the directors did not believe that the dot com venture was a temporary event and decided to sail thought the storm and when the directors noticed that the change was required it was too late and the boat was already under water. Netflix fail to execute their organization change because the directors just imposed the change and did not instructed to their costumers about the change. Netflix imposed the change and the customers reacted by canceling their subscription.
Based on the nature of the companies the following images of change are the best-suited for the organization change; director, navigator, and interpreter. Because the employees these organizations are used for a few persons making the decisions and them implementing the changes according what is dictated to them the director image is critical on order to have a successful change. The director image is based on management as control and of the achieved outcomes. The director image will be able to make decisions based in order of importance in order to realign the organization to change the environment by introducing the new procedures thought the organization.
To make the organizational change flow more easy, behind the director will be the navigator, and interpreter. The interpreter will work directly with the organization employees and will provide support to the changes directed by the director. The interpreter will also work directly with the organization employees and will evaluate their moral, and help them accept the changes. Further more the interpreter will work with the customers and evaluate their acceptance to the new changes. The navigator and interpreter will report regularly to the director about the progress on implementing the changes.
Six-Box Organizational Model
The diagnostic model that best fits to analyze Blockbuster and Netflix is the Six-Box-Model because according to the research done both companies did not consider using an elaborate method for to change an organization. This part of the document will present how both companies where leadership oriented, how the leaders fail on implementing the organizational change and how the organization could have implemented a successful change.
Business Six-Box-Model Change
Blockbuster
Leadership
The organization was totally dominated by the CEO Jim Keys. All decisions were anlalyzed, and executed by the CEO.
Purpose
Provide to the customer with convenient locations, and wide...

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