After talking about the Value Curve in class and how Cirque de Soleil was able to create a new market and add more value to potential customers, I tried to think of other companies that had been able to do the same thing. The first thought that came to my mind was the movie rental industry. Blockbuster used to be a powerhouse in the movie rental industry. They provided their customers the opportunity to watch a movie without purchasing it and had stores in convenient locations.
Blockbuster enjoyed this dominance until Netflix found a way to create a new market and still much of Blockbuster's business. Netflix took the convenience and luxury of Blockbuster and increased it. Customers no longer had to leave their homes to rent a movie. They could request it online and it would come in the mail. Netflix added even more value to customers when it created the streaming option.
We are now seeing another shift and the creation of a market where videos are no longer shipped; rather, they are simply streamed. The inability of Netflix to provide customers with a wide variety of videos to stream has allowed other companies such as Hulu or Amazon to sneak into the market. It is only a matter of time before another company finds a way to create a new market or find ways to add value to a customer's experience.
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