While researching a topic, a student has taken the following notes: Blockbuster dominated video rental markets throughout the 1990s with...
GMAT Expression of Ideas : (Expression) Questions
While researching a topic, a student has taken the following notes:
- Blockbuster dominated video rental markets throughout the 1990s with over 9,000 physical stores
- The company's business model relied on customers traveling to locations to rent physical media
- Netflix launched in 1997 as a mail-order DVD service, later introducing streaming in 2007
- Blockbuster executives initially dismissed streaming as a niche market with limited appeal
- By 2010, Netflix's streaming service had fundamentally changed consumer expectations for entertainment access
- Blockbuster filed for bankruptcy in 2010, unable to adapt to the digital transformation
The student wants to emphasize Blockbuster's failure to recognize changing market conditions. Which choice most effectively uses relevant information from the notes to accomplish this goal?
Blockbuster's physical store model dominated the 1990s video rental market until Netflix introduced streaming services that changed consumer expectations.
Netflix's 1997 launch as a mail-order service and subsequent streaming introduction in 2007 contributed to Blockbuster's 2010 bankruptcy filing.
Despite Netflix's growing influence on entertainment access expectations, Blockbuster executives dismissed streaming as a niche market, a miscalculation that contributed to the company's 2010 bankruptcy.
Blockbuster operated over 9,000 physical stores throughout the 1990s before Netflix fundamentally changed consumer expectations with streaming technology.
Step 1: Decode and Map the Passage
Part A: Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| "Blockbuster dominated video rental markets throughout the 1990s with over 9,000 physical stores" |
|
| "The company's business model relied on customers traveling to locations to rent physical media" |
|
| "Netflix launched in 1997 as a mail-order DVD service, later introducing streaming in 2007" |
|
| "Blockbuster executives initially dismissed streaming as a niche market with limited appeal" |
|
| "By 2010, Netflix's streaming service had fundamentally changed consumer expectations for entertainment access" |
|
| "Blockbuster filed for bankruptcy in 2010, unable to adapt to the digital transformation" |
|
Main Point: Blockbuster's failure to recognize the significance of streaming technology led to their downfall while Netflix transformed the entertainment market.
Step 2: Interpret the Question Precisely
What's being asked? Which choice most effectively uses the notes to emphasize Blockbuster's failure to recognize changing market conditions.
What type of answer do we need? A statement that highlights Blockbuster's misjudgment or inability to see market shifts coming.
Any limiting keywords? N/A
Step 3: Prethink the Answer
To emphasize Blockbuster's failure to recognize changing market conditions, the correct answer should:
- Highlight their specific misjudgment about streaming technology
- Show the contrast between what they thought and what actually happened
- Connect their poor judgment directly to negative consequences
Blockbuster's physical store model dominated the 1990s video rental market until Netflix introduced streaming services that changed consumer expectations.
✗ Incorrect
- Describes the timeline but doesn't emphasize Blockbuster's failure to recognize changes
- Focuses more on what Netflix did rather than what Blockbuster failed to see
Netflix's 1997 launch as a mail-order service and subsequent streaming introduction in 2007 contributed to Blockbuster's 2010 bankruptcy filing.
✗ Incorrect
- Simply states chronological facts without emphasizing the failure aspect
- Doesn't mention Blockbuster's dismissal of streaming or any recognition failure
Despite Netflix's growing influence on entertainment access expectations, Blockbuster executives dismissed streaming as a niche market, a miscalculation that contributed to the company's 2010 bankruptcy.
✓ Correct
- Directly states that executives dismissed streaming as a niche market
- Labels this as a miscalculation, explicitly calling out the failure to recognize market changes
- Connects the misjudgment to the consequence
Blockbuster operated over 9,000 physical stores throughout the 1990s before Netflix fundamentally changed consumer expectations with streaming technology.
✗ Incorrect
- Focuses on the physical store dominance and Netflix's impact
- Doesn't mention Blockbuster's dismissal of streaming or recognition failure