Now when Blockbuster first started, it was an incredibly innovative business concept. Its founder imitated a lot of the distribution and franchising models that made McDonald’s an international fast food success, but applied these to video rental stores. But as we’re all seeing, a business model that created so much value and became such a stellar success beginning in the 1980s, just doesn’t create enough value to remain competitive in the 2010s. It’s been killed off by more efficient and cost-effective business models like RedBox and Netflix, which create more value for their customers by providing cheaper video rentals with a lot more convenience. Yet Blockbuster’s destruction means its employees are losing their jobs and its investors are losing their profits. Should Blockbuster get a bail out?
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