Blockbuster Case Analysis Essay

1485 Words 6 Pages
The Life of Blockbuster

History and Background Blockbuster's origins date back to the mid 1980's when the video cassette recorder (VCR) was the new hype and families all over America were quickly turning to movie rentals as a form of in-home entertainment. David Cook, who previously started David P. Cook and Associates, Inc. to offer consulting and computer services, saw an opening in the quickly expanding movie rental business. Eager to start a business, he jumped in making Blockbuster the Wal-Mart of movie rentals offering a wide variety of movies to customers in a family environment with standout buildings and bright lights. From there, Blockbuster growth exploded bringing in external investors and national attention. To
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To survive all these mishaps, battles, and court orders, Blockbuster has implemented some very interesting strategies. In this paper, I will discuss the strategies Blockbuster has implemented in the past, how those strategies ultimately affected the bottom line of Blockbuster, present and future strategies of Blockbuster, and recommendations on what Blockbuster should do to remain at the top of the video and game rental food chain.
Blockbuster's strengths have evolved throughout the life of the company. In the beginning, Blockbuster's strengths were family centric, marketing innovation, and adaptability to the needs and wants of customers. Because they were much smaller, change, once noticed, was much easier to implement. In today's market however, Blockbuster's composition, business model, and economic status has changed quite drastically, especially in the last 5 years. Their largest strength today is goodwill or their name, and the connotation associated with the name Blockbuster. Another strength is their customer base, which reportedly has grown to over 43 million households across the United States. Because memberships are required at most video rental outlets, many customers are reluctant to change video rental stores merely for the hassle of creating an additional membership. Blockbuster strengths at this point in the "video rental game" is a difficult topic. Despite the recent turn of events against Blockbuster by competitors such as Netflix

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