Question

One challenge that Netflix faced was that Blockbuster and Walmart were able to quickly extend their strong brands to also become synonymous with a DVD-by-mail subscription service.

What challenge did Netflix face in the competition with Blockbuster and Walmart?
a. Both Blockbuster and Walmart had weak brands.
b. Blockbuster and Walmart couldn't extend their brands.
c. They quickly extended their brands into DVD-by-mail services.
d. Netflix had a monopoly in the DVD rental market.

Answer 1

Netflix faced the challenge of Blockbuster and Walmart quickly extending their brands into DVD-by-mail services.

Step-by-step explanation:

One challenge that Netflix faced in the competition with Blockbuster and Walmart was that Blockbuster and Walmart were able to quickly extend their strong brands to also become synonymous with a DVD-by-mail subscription service. This meant that these well-known brands already had established customer bases and trust, which made it harder for Netflix to compete.