Economic History

Netflix and Buggy Whips

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  1. Anonymous says:

    Our world is always changing and advancing, companies are always creating newer and more innovative products, and consumers are always willing to upgrade. Some other examples of “creative destruction” are computers and typewriters, cell phones and landlines, digital cameras and film, and Blu-Ray and DVD (I’m sure we all remember the confusing war between Sony’s Blu-Ray and Toshiba’s HD DVD). I find it fascinating how Netflix recognized from the start the possible competition between streaming and DVDs and used innovation to protect themselves from destruction. This kind of innovation is crucial for companies operating in a capitalist economy. The threat of competition and creative destruction is present at all times, and not all companies can adjust with the constant advancements.

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