Blockbuster Swot Analysis

1589 Words7 Pages
Tabari Holloman
Business Policy

Blockbuster Video Swot Analysis

Blockbuster Inc. is an American-based chain of VHS, DVD, Blu-ray, and video game rental stores currently under Chapter 11 bankruptcy. As of January 3, 2010, there were over 5000 Blockbuster stores in the U.S. and 17 countries worldwide. It is headquartered in the Renaissance Tower in Downtown Dallas, Texas.[1] Because of competition from other video rental companies like Netflix, Blockbuster has seen significant revenue losses. The company filed for bankruptcy on September 23, 2010.

* Lead market share of online rentals
* Low fixed costs
* Worlds largest selection of DVDs
* Fastest delivery time of any online DVD rental company with over 35
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The amount of households subscribing to cable and satellite television has indeed grown. What they could not have foreseen was the emerging rent-by-mail market. Pay-per-view has always been a competitor to Blockbuster, but also offers a limited, dynamic selection of new releases only. Premium cable channels such as HBO and Showtime have also been on the rise in subscription, but lack of quality movies and control over what is shown have still allowed Blockbuster to fulfill its target market. Recently, certain major cable providers have begun offering On Demand television. On Demand has two forms, fee per month, and pay-per-view. The fee per month system is offered by the major pay channels such as HBO and Showtime, and basically allows the subscriber to browse the network’s constantly rotating selection and pick what movie they want to watch and when. This is not widely available but could become a major threat as more cable providers offer it as an option. Its only drawback is the consumer pays their monthly fee and has no control over the selections they have to choose from. Now, there is online rent by mail. Under rent by mail, the consumer still pays a monthly subscription fee comparable to HBO On Demand, but now can choose from thousands of titles and watch and return them whenever they please. The leader in this niche of the market is Netflix. Netflix boasts offering over 25,000 titles available for rent at anytime. Netflix,
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