Blockbuster also initiated its business level strategy through differentiation aimed at a broad market. The company’s original purpose was to allow consumers to rent movies rather than spend full price to purchase them. Consumers valued this type of business model, as it was unique at the time. Consumers would have rather rented a movie for a few days rather than purchase one and watch it maybe once or twice a year. However, Blockbuster was not able to maintain a competitive advantage through this strategy. The Internet became increasingly popular, both for personal use and business. Netflix recognized this opportunity and seized it, leaving Blockbuster and its traditional physical storefront behind.
Comcast uses a cost leadership business level strategy in order to capture a higher market share. They target a broad market and sell their products at prices below the industry average. According to CNNMoney.com, the average cable bill in the United States is about $75/month. Comcast’s digital cable costs $39.99/month. Comcast also offers new customers discounts if they bundle its services: cable and Internet costs $79.99/month (Comcast.com: 2010)