Business and Money Tips

Case Study 1: Netflix vs Blockbuster — “Win Without Fighting” How did a small mail-order DVD company conquer a billion-dollar empire — without fighting head-on? In the early 2000s, Blockbuster dominated the home entertainment industry with over 9,000 stores worldwide. Netflix, a small startup, knew it could never out-spend or out-advertise Blockbuster. Instead, Netflix applied the Sun Tzu principle: “Avoid what is strong; attack what is weak.” It quietly shifted the battlefield. While Blockbuster invested in more physical stores (a strength), Netflix moved to digital streaming (the unguarded flank) — removing the need for stores entirely. By the time Blockbuster reacted, Netflix had already built customer loyalty, data analytics capabilities, and a new definition of convenience. Netflix didn’t win by fighting harder; it won by changing the terrain . This reflects Art of War strategy: “He who excels at resolving difficulties does so before they arise.” Netflix saw that the ...