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Advantages Of Big Bang Disruption

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In the era where written communication was predominantly done by postal mail, email services offered a novel method that was not just quicker but also highly convenient. The huge and expensive mainframes were replaced by the smaller & easy to use mini computers. Pocket calculators replaced the standard calculator while offering the same computing performance and portability. These were cases where the disruptive innovation creates a new market and value network that dislocates the existing market and dislodges the earlier technology.
Big Bang Disruption (BBD) is a disruptive technological innovation that enters the market with a bang and faces dramatic market adoption often causing collateral damage to sitting business. The practitioners combine …show more content…

However, on a corporate scale, Netflix dreamed to make a push into the streaming market by introducing more titles for the consumer to have easy access to. Netflix has a sustainable advantage when it came to their ability to physically distribute their titles in a new and innovative way that created superior customer service. They also have the upper hand when it comes to online streaming of content because they are the first movie distribution means that can stream directly onto your game console, computer and television. Netflix is currently positioned to make long and short-term progress in the streaming market once they gain the right to use more titles. This will add to consumer retention as well as bring in new consumers who will now have switch to movies than just the previous means of physical …show more content…

The company combined the physical-landlord model (with the subscription) and all-you-can-eat model to allow customers to rent all the DVDs they could in a month for a flat upfront fee. Customers were allowed to keep the DVDs for an unlimited period of time and were not subject to the late fees. In return, customers agreed to pay a monthly subscription fee that was recurring in nature.
Blockbuster versus Netflix: While both Blockbuster and Netflix bought movie licenses from studios, the key area of difference is the approach towards the target audience. Namely:
• While for Blockbuster, the customers had to come to the store and rent the DVDs, in the case of Netflix, the customer orders the DVD from the convenience of their homes, which would be delivered by US Post
• Blockbuster levied a “late” charge for the DVDs returned post the rental period, which was one of their major sources of revenue. Netflix on the other hand imposed no such late fees, which, although an immense liability, was also an important reason for their immediate popularity
• The only seemingly downside of Netflix was the waiting period for the users to receive the

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