Blockbuster Business Analysis

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Table of contents 1 Introduction The rental movie market is a high competitive and dynamic market, dominated for several years by Blockbuster, with its pioneer business model of delivering convenience to the costumers looking for home entertainment. The company was a model for the industry during the 80’s, 90’s, but with the new age of online movies, the consumer behavior changed drastically, and other companies, as Netflix and Redbox, providing online content and innovative services, started to dominate this new market. Nowadays, Blockbuster’s business model seems to be obsolete, since the company could not keep up with the changes, almost closing the doors in 2010 when a bankruptcy process was open, the…show more content…
This report will be showing below the SWOT Analysis for Blockbuster: 4.2 GAP Analysis The GAP analysis consists in a framework describing, and identifying the major changes and solutions, for what the company are pursuing to achieve with the new strategy. The chart below presents the GAP analysis for Blockbuster, considering the needs for the new business online model: 4.3 Cost-Benefit Analysis According to Wikipedia, Cost-Benefit Analysis “… is a systematic process for calculating and comparing the benefits and costs of a project, decision or policy.” The main objective is to justify investments, and to provide a basis for projects comparison and analysis. For Blockbuster, the main strategic changes are related to prepare the company for the new online market, and the chart below will be presenting the main solutions/initiatives for it: 5 Conclusion This report showed that the
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