Blockbuster Llc

Better Essays

Blockbuster LLC was founded by David Cook on October 19, 1985 and opened its first store in Dallas, Texas. Blockbuster was known for providing home movies and video game rental services through their stores, along with movie refreshments. The company was a success from the start, Cook designed each store to coordinate with its neighborhood by keeping its products geared specifically to demographic profiles along with new popular movie releases. Blockbuster expanded rapidly and became one of the world’s largest providers of in-home rental movies and games. In 2004, Blockbuster employed 60,000 employees in over 9,000 stores. The company’s inventory consisted of more than 8,000 Video Home System (VHS) tapes in more than 6,500 titles. Blockbuster …show more content…

As such, it is important to evaluate Blockbuster’s hard and soft infrastructures during their early days of growth through their darker days preceding their collapse. As expected, Blockbuster utilized a very tall hierarchical structure with several layers of management between frontline employees. Although, Block buster had strong structure, the issue lied with their decision making strategies being poorly executed. Decision making is the defined as the thought process of selecting a logical choice from the available options. When trying to make a good decision, a person must weigh the positive and negatives of each option, and consider all possible alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well. In their early days, Blockbuster controlled the video rental industry with their large inventories and a monopoly on access to newly released movies. In the driver’s seat, they were able to set aggressive daily rental pricing models and apply steep penalties when movies were returned late. According to Dunx, over the years, Blockbuster management has always appeared to use a “heads down” management approach. With this style of management, the business focuses on the delivery of their current services, makes decisions within a vacuum and fails to integrate innovation into their daily management …show more content…

He was working toward TV and movies streaming. Netflix wanted to work with Block buster and wanted to assist Blockbuster and want to work as its digital extension. According to Ken Auletta Blockbuster denied to invest in new technology and they thought it was unnecessary to invest in a maybe business. According to Baskin company s’ top management was very narrow minded and they couldn’t see broader picture. They completely ignore changes that were taking place in the external environment the technological changes like online streaming. According to him it’s not always tech company s’ job to take credit for all changes in the world. In any market company who wants to succeed and want to stay on the top they need to take

Get Access