Failure Of Organizational Management In The Decline Of The Blockbuster Video Company: A Case Study

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Introduction In this short presentation will examine a case study of a failure of organizational management in the decline of the Blockbuster Video Company. We will examine a number of questions surrounding this failure and will generalize these lessons for Blockbuster Video stores in the future as it is run by the Dish Network company. The buyout by Dish Network will provide a case study of what happens when different organizational cultures merge. How the Organization's Culture Facilitated the Failure. Like many companies that have gotten in trouble, Blockbuster lost track of its number one asset, its customers. They also suffered from a lot of technological issues (the late adoption of DVD's for example) as well. Unfortunately, the customer issue seems to be more basic. This was not the case to begin with. Like any small business that makes it and grows, Blockbuster decimated the local mom and pop video stores by supplying over 8000 video rentals and also by renting video games, removing pornographic movies and by staying open every night until midnight. However, like many large companies, it became content and did not keep up with customer demands and expectations. Unfortunately, Blockbuster would frequently not have the videos in DVD format that the customers wanted, or they would not have what the customers. However, ever more telling was its failure to look at what competitors were doing. Competitor Netflix in 1999 began providing DVDs by mail. While at several

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