Essay on Marketing Plan for Blockbuster Enrertainment

Netflix founder, Reed Hastings, recognized an unfulfilled need in the movie rental industry and started Netflix to provide customers with the ability to receive movies through the mail and not pay any late fees which were prevalent at the time with companies like Blockbuster (Kotler & Keller, 2009). Netflix has continued to expand its service offerings but providing members with the ability to download movies directly without any additional fees.

Now it\ 's year three. The CEO wants to know your plan for sustaining market growth.

Increase foothold in China's telecommunications industry via deals like JBC, given there is a prospect of liberalization of state owned telecommunications markets

Blockbuster Entertainment, Inc. was once a highly successful and profitable brick and mortar home movie and video game rental store. At its peak in 2004, Blockbuster had up to 60,000 employees and more than 9,000 stores. The idea behind Netflix came from an unsatisfied, embarrassed customer of Blockbuster, Mr. Reed Hastings, now CEO of Netflix, paid a $40 late fee because he returned the movie Apollo 13 six weeks later (Zarafshar, 2013). He began to contemplate ingeniously about a notion to change the movie-leasing pattern into a more pioneering industry. In 1997 Netflix was started as a DVD rental-by-mail business without subscriptions. In 1999, taking a stride additional in the direction of evolving the industry, Hastings began the subscription-based business mode based on renting DVDs by mail with plans reliant on the quantity of titles taken at a time. Netflix put forward 120,000 titles for limitless monthly DVD rental with free shipping no late and per title fees. Since that time Netflix has become one of the most popular subscription services in the world, and is now valued at over $28 billion and steadily increasing. What factors contributed to the success and failure of these two companies?

Opportunities include huge market, no competition for at least three years, potential huge margin, good marketing strategy.

The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in

This report is based on market orientation process of Blockbuster and its role in achieving the organization goal and objectives. From this report, it is analysed that the market orientation plays an important role in the success of organization and to have the holistic view about different factors that affect the growth of the firm. In addition, it is seen that Blockbuster became the biggest Video chain in the USA and expanded it self around the world, but when it was growing faster, how it’s failure to understand market orientation, macro and micro industry requirement also its marketing Myopia brought Blockbuster to bankruptcy.

Rivalry among industry competitors – Netflix and Blockbuster are in a highly competitive industry. Competitors include merchant retailers, such as Wal-Mart, Best Buy, and Target; video and game store like Hollywood Video, Movie Gallery, and Game Stop; supermarkets, convenient stores such as Publix, and McDonald's. The significant rival is Hollywood Video which offers movie and game rentals (Xie & Lin, 2008).

At the beginning Netflix had a clearly visible competitor and that was Blockbuster which had a strong projection and development in the film and video industry. Although Netflix represented a new and risky concept in that industry, it was a competitor who dethroned Blockbuster. When trying to implement its services Netflix suffered from ups and downs with its customers, for example: When Netflix decided to separate DVD mailing services from the option of watching programs and movies on the Internet instantly through streaming, many members canceled their subscription, The company's shares went down and the reputation of a brand that was characterized by its respect for the customer collapsed. Until this moment Netflix had not had a real competition.

Netflix was founded in 1997 with the intent to revolutionize the way in which consumers watch movies and television shows. Their accomplishments both in innovation and in customer base for their service indicate that the firm has been, and continues to be, successful in doing so. Currently, the

What role has Netflix played in the development of Blockbuster’s strategic planning? How important is Netflix to Blockbuster’s future strategic plans?

The main reason Netflix was able to become successful in such a short period of time over block buster is due to the DVD plans they offer, members select movies and TV shows from there website and they receive them on DVD by United States mail and return them using prepaid mailers with no due dates, no late fees or shipping charges and no cancellation fees, after an individual returned a DVD they mail the next available DVD. Netflix change the procedures by changing how things were done. It started offering a lot more movies which are convenient and at a lower price for customers. These are its competitive advantages against blockbuster. The monthly fee Netflix offer make it easy for individuals to rent as much they wanted. . They also have

Over the past 18 years, Netflix has greatly evolved, changing the way movies and television shows are watched. It was founded in 1998 by Marc Randolph and Reed Hastings as a DVD mail-order service. Netflix knew that it had to grow and innovate in order to compete with other big-name movie rental services such as Blockbuster and Redbox. Because of this, both Randolph and Hastings decided to integrate streaming in 2007. Although one could only stream on a desktop or a laptop,

But Netflix wasn’t the only company in the streaming market, it faced competition from Amazon Prime and Amazon Instant Video, both of which were offered by Amazon.com due to which it didn’t have the meaningful first mover advantage in the market leading to erosion of its profit margins. Netflix was again forced to evolve its business model and differentiate itself in order to capture value and regain profitability. The evolved business model focused on content marketing. Here are few ways the video-streaming and DVD-by-mail giant is winning at content marketing.

Netflix began in 1997 as a revolutionary idea by CEO Reed Hastings and software executive March Randolph. Before long, in 1999 Netflix launched its major line of business, the online subscription service, which radically changed the way consumers viewed movies and television. For a young company in an innovative and growing industry, Netflix has set itself up for a tremendous journey. The company has had much success due to its adaption of a modern business model and strength in operations management. Its continued reliance on and improvements of operation management principles is necessary to continue growing and bringing in profits.