ISYS1021 Lecture Notes - Lecture 3: Walmart, Long Tail, Oligopoly

• School: Boston College
• Department: Information Systems
• Course: ISYS1021
• Professor: John Gallaugher

Document Summary

Originally 3 dvds at : send by cue, kill video store environment. Blockbuster: charged late fees, netflix created to fight video stores. Strategic regret: going public too soon, when private company no one knows what you"re doing, when public you see what is going on and how the company is doing. Price war: advertising costs go up: no one thought that netflix would be successful: a share since the split. Wal-mart saw that the business was too different: warehouse: not good for sending out individual dvds, wasn"t worth the change in infrastructure. Blockbuster: moved late and lost value, stock prices plummeted. Netflix: every quarter they kept getting better: brand, scale, data, through dvd by mail, brand. Blockbuster: dvd store (driving and picking up) Netflix had the best brand customers talk about how much they loved netflix: distribution centers. Sort through bins role out the regional facility. Ready to be sent out to individual homes: economies of scale.