Question

Do you agree/disagree that technology can successfully impact a business's financial success? Explain.

Answer 1

Agree. There are multiple real life examples where companies fortune have changed due to technology changes. One of the best examples is Blockbuster vs Netflix.

Back in the early 2000s, Blockbuster, the video renting company, had reached a peak market capitalization of $5 billion. Netflix in early 2000s was trying to change the rules of the industry and had a market cap of around $50 million. Little did the management of Blockbuster knew about the earth-shattering changes in the technological advancement and consumer preference happening in the video business! Fast forward to today, Netflix has a market capitalization of $160 billion and Blockbuster filed for bankruptcy in 2010. Netflix was quick to adapt to the new technology and aligned its business model as per the consumer's preferences and has become a dominant force globally in the video streaming business.