Explore an instance of creative destruction (Blockbuster displaced by Netflix) by applying the economic theories outlined in Froeb Chapters 7-10. Refer to at least 5 articles authored by economists or scholars that elucidate the dynamics of companies and industries through economic concepts. Furthermore, include 5 supplementary references that furnish historical information on the industry and specific companies being analyzed.

Does the industry exhibit economies of scale, which would lead to consolidation? Does production efficiency increase over time due to learning curves (e.g., semi-conductor production unit costs decrease with cumulative production volume)? Are there economies of scope (e.g., Amazon's "pipeline" can deliver almost any type of product. Its infrastructure costs are spread over more units the more products it introduces

How does a new technology shift the supply curve? How much is the increase in consumption of a product, such as mobile phones, due to the decrease in cost (supply shift, even if demand curve didn't shift) vs. an upward shift in the demand curve due to new ways to use the device and new habits of use?

How do the winners in your chosen industry earn economic profits? How do they maintain that competitive edge? What competitive strategies do they employcost reduction, product differentiation, reduction in competitive intensity?

Structure of Paper

Introduction: Briefly explain the concept of creative destruction. Describe how your paper will explore the rise and then replacement of a market leader through the lens of creative destruction.

Former leader: explain how the former industry leader achieved its dominance. Later you will be explaining how this former leader became part of the creative destruction of its industry, but don't minimize its initial rise to dominance. What did it do well? Who did it replace?

Creative destruction giving rise to new leader: explain how and why the former industry leader lost its dominant position. That is, what caused the market disruption and why was the former leader left behind? What distinguishes the new leader from the old leader and any aspiring leaders who lost in the transition? Be specific as to costs, expertise, organizational flexibility, strategy, risk management, etc. If a new leader emerged, what did it do better than the old leader? Just because it won this transition doesn't mean it can't be unseated in the next round of creative destruction. What are the warning signs of impending challenges?

Conclusions: Brief summary of your findings and lessons applicable to other businesses.

Please add references