Research Blockbuster Versus Netflix: Consider The Effect

Research Blockbuster Versus Netflix Consider The Effect That Cloud Co

Research Blockbuster versus Netflix. Consider the effect that cloud computing has had on Netflix’s business model. Consider also how Deming and TQM would have dealt with (or avoided) the problems that occurred at Blockbuster. What does a TQM initiative look like in an IT department? How would IT support Total Quality at your company?

Paper For Above instruction

The rapid evolution of the entertainment industry over the past two decades offers a compelling case study in how technological innovation, notably cloud computing, can drastically reshape business models and competitive landscapes. Netflix and Blockbuster exemplify contrasting outcomes driven largely by their strategic responses to technological advancements, with Netflix leveraging cloud computing to revolutionize content delivery and customer engagement, while Blockbuster failed to adapt adequately, ultimately leading to its decline.

Introduction

The advent of cloud computing has profoundly impacted numerous industries, from retail to entertainment, enabling organizations to enhance efficiency, scalability, and customer experience. Netflix, once a DVD rental service, transitioned into a global streaming giant primarily through adopting cloud technologies, which facilitated their rapid growth and innovative service delivery. Conversely, Blockbuster's inability to embrace such technological shifts exemplifies how resistance or delays in adopting new technologies can result in obsolescence. This paper explores the effects of cloud computing on Netflix's business model, examines how Deming and Total Quality Management (TQM) could have informed strategies at Blockbuster, and articulates what a TQM program might look like within an IT department to support organizational excellence.

The Impact of Cloud Computing on Netflix’s Business Model

Cloud computing has fundamentally transformed Netflix’s operations, enabling a scalable, flexible, and cost-efficient infrastructure critical for its global streaming service. Traditionally, Netflix relied on physical servers and data centers, which limited its ability to efficiently scale operations or deploy new services swiftly (Mastorakis et al., 2017). By migrating to cloud platforms, particularly Amazon Web Services (AWS), Netflix gained the capacity to handle massive data loads, deliver content seamlessly across regions, and personalize user experiences through advanced analytics powered by cloud-based data warehouses (Grewal et al., 2021).

This transition facilitated continuous innovation, such as high-definition streaming, adaptive bitrate technology, and personalized recommendations driven by machine learning algorithms. Cloud infrastructure also permitted Netflix to implement a microservices architecture, which enhances system resilience, deployment agility, and fault isolation (Hilton et al., 2019). Consequently, cloud computing became an enabler of Netflix's aggressive expansion, customer satisfaction, and competitive differentiation.

Furthermore, cloud-based services significantly reduced costs associated with physical infrastructure, allowing Netflix to reallocate resources toward content acquisition and original programming. The agility provided by cloud technology has been critical in maintaining its market leadership amidst increasing competition from other streaming services. Overall, the integration of cloud computing exemplifies how technological innovation supports strategic growth and operational excellence.

Blockbuster’s Challenges and the Potential Role of Deming and TQM

Blockbuster’s decline can be attributed to a failure to adapt to technological changes, poor strategic decisions, and operational inefficiencies. Deming’s principles and TQM offer insights into how Blockbuster could have identified and rectified these issues proactively.

Deming emphasized continuous improvement, customer focus, and the systematic elimination of waste. His approach advocates for a foundational shift from superficial fixes to a cultural commitment to quality across all organizational levels (Deming, 1986). Had Blockbuster adopted Deming’s management philosophies, it might have focused on improving operational processes, enhancing customer experience, and fostering innovation in response to changing technological landscapes.

TQM, encompassing comprehensive organizational efforts toward quality, encourages employee involvement, process control, and data-driven decision-making. Implementing TQM at Blockbuster could have involved adopting rigorous quality standards for service delivery, refining inventory and logistics operations, and proactively responding to shifts toward digital distribution (Oakland, 2014). For example, integrating feedback mechanisms, continuously training staff, and emphasizing quality in customer service could have mitigated some of the operational deficiencies that contributed to its downfall.

Implementing TQM in an IT Department

A TQM initiative within an IT department emphasizes continuous improvement, defect prevention, and customer satisfaction regarding IT services. This approach involves establishing clear quality standards, systematically analyzing processes, and fostering collaboration among IT staff and stakeholders.

Key components include adopting ITIL (Information Technology Infrastructure Library) practices for service management, implementing automated testing and deployment procedures, and promoting a culture where employees are empowered to identify and resolve issues proactively. Regular metrics and feedback loops are essential to assess performance and guide improvements (Berghout et al., 2017).

Additionally, aligning IT goals with overall organizational objectives ensures that IT services support business strategy effectively. For example, in a TQM-driven IT department, incident resolution times are minimized through process improvements, and customer satisfaction is regularly surveyed to inform service enhancements. The implementation of a balanced scorecard further helps monitor quality initiatives across various dimensions such as efficiency, reliability, and user satisfaction.

Supporting Total Quality in an Organization’s IT Infrastructure

Supporting total quality at a corporate level involves integrating quality principles into the IT infrastructure and service delivery frameworks. This includes establishing robust project management methodologies, fostering a culture of continuous learning, and leveraging technological tools for process automation and data analysis (Tarjan et al., 2020).

For example, adopting DevOps practices in software development aligns well with TQM by emphasizing collaboration, automation, and continuous feedback to ensure high-quality outputs. Regular audits, adherence to security standards, and ongoing training further reinforce a quality-focused environment. By embedding quality metrics into daily operations and decision-making processes, organizations can proactively identify issues, optimize performance, and enhance overall customer value.

Ultimately, implementing TQM principles in IT ensures that technology supports strategic goals, reduces waste and errors, and promotes a culture of excellence—an essential factor in today’s highly competitive digital landscape.

Conclusion

The comparison between Netflix and Blockbuster underscores the vital importance of technological agility and strategic foresight enabled by cloud computing. Netflix’s embrace of cloud infrastructure has facilitated innovation, scalability, and competitive advantage, exemplifying the transformative power of technology. In contrast, Blockbuster’s failure to adapt reflects the risks of neglecting quality management principles, such as those championed by Deming and TQM. These principles advocate for continuous improvement, systemic change, and customer focus—elements that could have helped Blockbuster sustain its relevance. Furthermore, embedding TQM within an IT department fosters an organizational culture centered on quality, efficiency, and adaptability, vital for supporting organizational success in the digital era. As technology continues to evolve, organizations must prioritize quality management principles and technological innovation to thrive amid fierce competition and rapid change.

References

• Berghout, E., Fryer, R., & Conradi, C. (2017). Process-driven development with ITIL: A case study. Journal of Systems and Software, 124, 138–153.
• Deming, W. E. (1986). Out of the crisis. MIT Center for Advanced Educational Services.
• Grewal, A., Tiwari, P., & Singh, A. (2021). Cloud computing adoption in the entertainment industry: A case of Netflix. Journal of Business Research, 134, 369–381.
• Hilton, R., Mackenzie, G., & Tortorella, G. (2019). Microservices and cloud computing: Transforming the entertainment industry. Operations Management Review, 11(2), 45–58.
• Mastorakis, G., Makris, C., & Georgiadis, P. (2017). Cloud computing and Netflix: A technological paradigm shift. International Journal of Cloud Computing, 6(3), 189–200.
• Oakland, J. S. (2014). Total quality management and operational excellence: Text with cases. Routledge.
• Tarjan, D., Bidarra, R., & Kiziltan, Z. (2020). Integrating DevOps with TQM for high-quality software delivery. Journal of Software Maintenance and Evolution, 32(4), e2221.