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Blockbuster Case Study

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Submitted By nafiz332
Words 1596
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Blockbuster Meaning
A thing of great power or size, in particular a film, book, or other product that is a great commercial success

About Blockbuster:
Blockbuster Inc. is a leading global provider of in-home movies and games entertainment.

Introduction: provides Blockbuster Video stores and Online rental services. worldwide brand operating in more than 20 countries majority in USA
Its stores are ubiquitous more than 8,000 stores

Slogan:

"The Movie Store at Your Door"

PRODUCTS: Retailing and renting of DVD
Blu-ray
Video games.

SIGNIFICANCE:
Easily available
Unlimited selection
Wide variety of movies from different genre
Small stores cannot compete

Changes:
2004: launched online rental service
Gain market share
No late fees
Video rental stores
Important change was hiring a new CEO, James W. Keyes.

CEO:
James W. Keyes(since july 2007) former CEO of 7-Eleven(2000-2005)
Vise president and chief operating officer of 7-Eleven

DOWN FALL: unable to determine profitable goods missed sales opportunities financial difficulties
Lost customer to Netflix
REVIVAL:
Quantitative approach

JAMES W. KEYESQUANTITATIVE APPROACH: 1) computer models to figure out the best way by saving both money and time.
2) Inventory model
3) Queuing theory
4) Capital budgeting
5) Production scheduling
6) Planning for manpower development programs.
7) Transportation and aircraft scheduling
8) Preventive control and replacement problems
9) Competitive problems

BLOCKBUSTER VS NETFLIX:

Monthly pricing: Netflix: $7.99 (one DVD)
$9.99 (one DVD or Blu-ray)
$43.99 for eight DVDs
($52.99 for Blu-ray). Blockbuster: $9.99 (one DVD, Blu-ray, or video game disc )$14.99 (two discs) Number and type of titles available: Netflix: More than 100,000 movies
TV shows on DVD and Blu-ray Blockbuster: More than 100,000 movies and TV

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