BUSN 1101 Chapter Notes - Chapter 2: Late Fee, Reed Hastings, Small Business

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: Shimer William

Document Summary

Blockbuster business model: rent a movie for a flat fee, late fees were steep, reed hastings, entrepreneur - late fee. Innovations: convenience of ordering movies over the internet, receiving and returning them by mail: / movie, / postage (+ late fees, consumer: those who wanted to watch movies w/o leaving the house. Subscription-based model unlimited rentals for a flat fee, no due dates (no late fees) Queue list of movies that customer wants to watch, automatically sends you a new one as you send an old one back: enhanced customer convenience, combined with cost savings. Weakened the competitive positions of companies already doing business in the industry. (cid:373)all busi(cid:374)ess asso(cid:272)iatio(cid:374): go(cid:448)"t age(cid:374)(cid:272)(cid:455) that assists s(cid:373)all (cid:271)usi(cid:374)esses, has diffe(cid:396)e(cid:374)t standards based on industry. Small business: one that is independent and has relatively little influence in its markets. Most u. s. workers are employed by small business: 89. 29% of all businesses employ 20 or fewer people.