Blockbuster's Missed Netflix Opportunity

Often times in strategy, a discussion breaks out over the difference between leadership and management. The contrast between the two concepts appears stark in Marc Graser's review of Netflix's attempt to sell itself to Blockbuster. The money quote:

In 2005, Variety first reported that while (Blockbuster CEO John) Antioco was respected as a tough negotiator and strong manager, he lacked the vision to see where the homevideo industry was going and the changing shifts in the business under his feet.

Blockbuster passed several times on Netlfix, and, later, Redbox. Instead the Dallas-based retailer made a bid for Circuit City. Less than three years after the negotiations with Netflix ceased, both Blockbuster and Circuit City filed for bankruptcy.

Consistent with resource advantage theory, Blockbuster's competitive disadvantage was based on a lack of competence resource. Ultimately, the company achieved inferior financial performance, filing for bankruptcy in 2010.

The $50 million envelope that could have saved Blockbuster.