Activision

After the acquisition of EB Games, GameStop rose as the leading video game retailer in its industry. In an effort to sustain their position, GameStop will have to tackle several technological and sociocultural issues that have arisen from its competitive environment. The strategic objective we wish to accomplish in this analysis is to formulate a viable strategy that will continue GameStop’s growth in the industry to remain as the go to video gaming store for the video gaming enthusiast.

Blockbuster revolutionized the video rental industry. Founded in 1985, by David Cook, the company became the leader of the video chain industry by 1988 (Wooldridge, B. R., Matulich, E., & Riddick Jr., J. C. 2007; “First Blockbuster,” 2012). However, by September 2010, Blockbuster filed for section 11 bankruptcy (Ahmed, 2011). The external changes in the market forced Blockbuster to reassess its business model and ultimately lead to the bankruptcy decision. An analysis of Blockbuster’s organizational challenges identifies failure in risk response and planning, thereby impacting performance, process, growth, and personnel prior to implementing new business strategies.

2. Purchase small, independent , “Mom and Pops” style operations in area of expansion and growth (W3, O2)

2. Pirogi, Jeanine. (2013). Titled: The Rise & Fall of Blockbuster: The very Long & Rewinding Road" (The Street). N.p., 23 Sept. 2010. Wide-Web. 11-Dec.

3. The marketing strategy of company is not so convincing because they can extend their product range with good

C. The partners combine resources and capital to create competitive advantages in a new market

2. Stable and broad market for products with product-line of small items, eliminating companies with dependence on few customers.

Shortly before their 25th anniversary, Blockbuster files for bankruptcy protection with a Chapter 11 petition. The failing company couldn’t compete in today’s market against Netflix, Redbox, Apple, and other internet-based businesses that provided mail-order rentals or digital streaming. Their business model needed to be revamped to stay competitive. This paper will take a look at where the problem was, the measures taken to correct the problem, and how Blockbuster can come back and be competitive.

One of the ways for the company to maintain its top position was to occupy the niches in the game industry. For this, the organization needs to focus on its core capabilities and capitalize on them. So far the company had achieved success in the area of digital content company. The company needed to grow its business through the integration of wired and wireless networks to become a global online development and publishing company. Since its inception, NCsoft was differentiated in the perception of its games. They focused on, to make the lives of the customers more joyful and make them a part of their entertainment culture. The company needs to introduce new games into the market to further increase its market share. It is known

customers and also conducting additional R&D to make new products from Dominite. This effort is a long term maketing strategy

Blockbuster is the largest movie rental retailer. With its opening in 1985, Blockbuster has pursued an ambiguous program of growth and expansion. Currently, Blockbuster owns and operates over 9,000 stores both domestically and internationally. In addition, Blockbuster franchises about a quarter of its stores. It is important to note that Blockbuster is undergoing a managerial struggle at the present time. The current CEO, John Antioco, and a major shareholder, Carl Icahn, are disputing Blockbuster’s strategy. Mr. Antioco has threatened to resign if Mr. Icahn succeeds at attaining a position on the Board of Directors1. Mr. Antioco believes that Blockbuster needs to develop new strategy to respond to the current market

Blockbuster’s restructuring of the company under its new owners shows how they were open to organizational change. The text describes organizational change as the movement of an organization from one state of affairs to another. Blockbuster completely changed their strategy and technology in order to compete with the new technology based companies that put them in this position in the first place. Simply put, no one visited the stores to rent movies when they could just turn on their television to order on-demand showings for the exact same price without leaving their home or grab a couple movies for a dollar apiece while grocery shopping. If they did not change they were sure to fail as a business and the company would disappear into the long list of companies that failed in the economic recession. The change was forced by other companies’ utilization of technology that caused a drastic change in the market conditions. This shift enabled the cheaper, more convenient home entertainment to steal a huge chunk of market share from Blockbuster’s traditionally structured company. Blockbuster enjoyed a long period on top of the movie rental/ home entertainment industry and this could possibly be what caused the success of these newer

1. Achieve an increase in the market share to 50% or above in the next 7 years

1) Invest heavily in market research section in order to create market-driven products and services.

External environment is very important for managers to make decision about the company’s direction and strategy. In order to gain a deep understanding of Blockbuster’s industry and competitive environment, the following seven questions need to be answered. Q1: What are the industry’s dominant economic features?