It's no secret that Blockbuster™ stores are closing,while Netflix™ is growing like gangbusters! Both companies participate in the video rental business.Netflix evaluated the lifestyle needs of video customers,understanding that time,family,and work obligations called for more convenient methods to receive video entertainment.Netflix embraced the opportunity to utilize the Internet,and TVs with special modems,to stream videos directly to customers.The company also managed to keep customer costs down,by passing along the savings it realized in labor.Blockbuster did not keep its eye on competitor movements,permitting Netflix to quickly capture video market share.In sizing up the situation,which external environments)probably had the least effect on Netflix's success?
A)Social environment
B)Competitive environment
C)Economic and legal environment
D)Technological environment

Question

Quizplus · Accepted Answer

The economic and legal environment likely had the least effect on Netflix's success, as there were no major economic or legal factors that would have impeded their ability to innovate and capture market share. The social environment could have influenced their understanding of customer needs, the competitive environment directly impacted their success in relation to Blockbuster, and the technological environment enabled their business model.

It's No Secret That Blockbuster™ Stores Are Closing,while Netflix™ Is