mr keyes obviously is a big fan of the quantitative approach

On the horizon, Blockbusters number of competitors should steadily increase from new emerging technologies. If Blockbuster extends into the realm of VOD, Legal Movie Downloads, or Digital Video Recorders (DVR), it must realize there are existing and powerful players in these markets already. This new technology is shaping the market for many deals or partnerships. They will face fierce competition, but in the future, Blockbuster must not find it self on the outside looking in.

Netflix is in a fairly favorable position on the strategic group map. Where Added value is measured in terms of instant movies and recommendations, and market coverage is measured in number of stores, vending machines, and online presence.

Blockbuster implemented a new strategy for customers to access their rentals in “five channels of distribution: in-store, by mail, through vending machines and kiosks, online, and at home (direct to the TV)” (DATAMONITOR, 2009). However, this strategy was a reactive approach to the problem produced ten years behind schedule. Wooldridge et al., (2007) stated that Blockbuster should select and adapt their strategy to respond to the fast changing market and maintain a competitive position. This was an obvious failure for Blockbuster. The changes in the market produced a decline in profit at a faster pace than the strategies that Blockbuster implemented to combat these losses.

The first failure of Blockbuster’s strategies, which lead it to bankruptcy, was the negative relationship with their consumers. While Netflix’s chief executive, Reed Hastings, recognized the technology had been grown rapidly and would change the transmission of movie rental industry, Blockbuster’s CEO, James Keyes, believed that consumers would still prefer to the brick-and-mortar rental structure. Thus, Keyes planned to focus on expanding Blockbuster’s stores into various departments

It appears that Netflix has control over the vast majority of the movie rental business. Consumers are renting less than they used to and the convenience that Netflix incorporates into its service, such as online streaming and mail orders eliminates other competitors from considering entering the movie rental business.

* Being an on-line DVD rental store, Netflix combines the growing Home Entertainment Market and

The movie studios want customers to be able to get their movies and entertainment as easily as possible. The easier it is for people to acquire their products the more likely it is that they will. By offering many different options for customers to obtain movies and entertainment, Blockbuster has a strategic advantage over its competitors. The convenience that Blockbuster can offer in their ability to distribute the movie studios products is a definite advantage. Another advantage

Blockbuster Out of Business In order to maintain a thriving business, the company must be able to meet all the requirements needed in order to be successful. There are many different factors that contribute to company's shutting down and becoming bankrupt, one of the main reasons why companies go out of business is because either the customer service was questionable, the establishment wasn’t properly ran, and or they were taken out by other newer more competitive counterparts. One business in particular that used to be the go to place to pick up the hottest and latest movies was Blockbuster. Blockbuster shortly went out of business after their 29 year long reign of being at the top.

The world is occupied multi billionaires. Many of them are willing to invest they're hard earned money in startups. They even dedicated multiple shows to the premise. Thousands of lucky business owners have received investments. But one still remains. The proud franchise used to play a pivotal role in the entertainment industry. Now it's dead. A series of large investments could restore it to it's former glory. Blockbuster has hope it just needs the right people.

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

Competition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership

Netflix exhibits dominant economic characteristics in the online movie rental business. They enjoy strong market size and growth rate when compared to rivalry competition. The number of rivalries are increasing, and the market remains dominated by only a few sizeable rivalries like Blockbuster Video, Wal-Mart, Walt Disney Movies and Movielink’s Downloadable Movies. Netflix is determined to offer new and innovative technology to sustain their competitive advantage.

Before the advent of movie rental stores, to watch a new movie, people had to go to theatres or cinemas spending a lot of money. Video rental was the answer to the new needs. Since the 90s, video rental industry has become a very big business; in those years, rental prices rose as more and more people began renting movies. At the same time, new players entered the market creating strong competition inside the industry. In the last years, the field of home entertainment has changed dramatically because of the presence of Internet and new technologies (Recorded DVD & Video in the United States, 2009).

Currently, there are only a few stores in existence; “it continues to operate in Alaska and Texas for those last of the hardcore video renters”. Blockbuster will soon be extinct.

Step 1: Identify the specific competitive pressures associated with each of the five forces Step 2: Evaluate the strength of each competitive force Step 3: Determine whether the collective strength of the five competitive forces is conducive to earning attractive profits. (Thompson, Strickland and Gamble 2008:54) Competitive rivalry Blockbuster reached a peak of 9,094 company-operated and franchised movie rental stores worldwide. However, when Blockbuster launched an online subscription service in 2004, it met the strong competitor, Netflix, which already had more than 2 million subscribers. Netflix offered a wider choice of subscription plans from $8.99 to $47.99. And it also developed proprietary software to provide subscribers with detailed information about each title in the Netflix library. Netflix offered a high quality service by giving one-business-day delivery capability for most of the subscribers. These kinds of service and performance cause the rivalry to be