Question

1.When videocassette recorders first became popular in the mid-1980s, a new form of “mom and pop” small business sprang up across the country: the video rental store. At the time, new videotapes of popular movies cost anywhere from $80 to $200. As the popularity of videocassette recorders grew, these small, independent video rental stores grew rapidly to meet the demand of consumers for inexpensive rentals of movies. There was considerable competition between them to be the first to have expensive, new movies available for rental. However, some stores disappointed customers by not having enough copies of new films when they were most in demand, upon their initial release on video. Within about 5 to 8 years of competition, most of these mom and pop video rental stores were ultimately put out of business by the large regional, and then national chains, such as Blockbuster. Using the concept of sustainable competitive advantage along with the four conditions required to produce it, explain how such a transition from hundreds of independent mom and pop video stores to a few national chains could have taken place so quickly.