Question

What was the most significant economic event that Blockbuster took in FY2010? What distribution channel did Blockbuster fail to achieve sufficient market share to be profitable? What Lovallo & Sibony cognitive bias type may best explain that failure? What written statement, selection of terminology, data manipulation, or absence of discussion in the 10K's or elsewhere best supports your judgement? Select the single best available answer from those presented below

A) Filing for Chapter 11 Bankruptcy; video streaming; competitor neglect; CEO Jim Keyes 2008 statement that, "Netflix doesn’t really have or do anything that we can’t or don’t already do ourselves".

B) Filing for Chapter 11 Bankruptcy; by mail; Misaligned perception of corporate goals; Netflix statement,"With 20 million subscribers as of December 31, 2010, Netflix Inc.is the world’s leading Internet subscription service."

C) Filing for Chapter 11 Bankruptcy; in store; competitor neglect; CEO Jim Keyes 2008 statement that, "Netflix doesn’t really have or do anything that we can’t or don’t already do ourselves".

D) Filing for Chapter 11 Bankruptcy; digital download; Misaligned perception of corporate goals; Netflix statement, "With 20 million subscribers as of December 31, 2010, Netflix Inc.is the world’s leading Internet subscription service."

E) Filing for Chapter 13 Bankruptcy; by mail; competitor neglect; CEO Jim Keyes 2008 statement that, "Netflix doesn’t really have or do anything that we can’t or don’t already do ourselves".

F) Filing for Chapter 13 Bankruptcy; in store; Misaligned perception of corporate goals; Netflix statement,"With 20 million subscribers as of December 31, 2010, Netflix Inc.is the world’s leading Internet subscription service."

G) Filing for Chapter 13 Bankruptcy; digital download; competitor neglect; CEO Jim Keyes 2008 statement that, "Netflix doesn’t really have or do anything that we can’t or don’t already do ourselves".

H)Filing for Chapter 13 Bankruptcy; video streaming; Misaligned perception of corporate goals; Netflix statement,"With 20 million subscribers as of December 31, 2010, Netflix Inc.is the world’s leading Internet subscription service."

Answer 1

The most significant event that Balockbuster took was the filing for Chapter 11 bankruptcy.

Blockbuster failed to achieve enough market share in the vending kiosks market.

(The focus on in store rentals led to this)

Confirmation bias by the Blockbuster management explains their failure best.

(While consumers tried to acquire personalized cable packages hinting at a market for pick-and-choose entertainment, Blockbuster refused the opportunity and subsequently failed)

Rebox passed Blockbuster for number of loactions for the first time in 2007.

Therefore the correct option is A..

Thankyou...