Premium Essay

Block Buster

In: Business and Management

Submitted By cc77701
Words 13411
Pages 54
Paul Noonan
Micky Thakkar
Carlton Graham
Dave Hasty
Christina Carroll

Busgr 567, Marketing Strategy

Dr. Joyce Hunter

May 25, 2010

Case Study: Blockbuster, Inc.


Table of Contents:

Dave Hasty
Mission Statement, History of Blockbuster, pg. 3-5

Carlton Graham/Paul Noonan
Marketing Strategy, 5-6
Marketing Mix, 6
Target Markets, 6-7

Micky Thakkar
Marketing Objectives and Goals 7-10

Paul Noonan/Micky Thakkar
Advertising and Promotion Strategies 10-13
Environmental Analysis and Porter Analysis 13-15

Christina Carroll
SWOTs 15-19
Netflix SWOT
Redbox SWOT
Blockbuster SWOT
Competitive Advantage
Strategic Focus

Paul Noonan
Financials 19-20
Future Trends 20
Recommendations 20-22

Questions 22-25

Bibliography 26

Compiled by Paul Noonan

The History of Blockbuster Inc.

Blockbuster’s mission statement is “To be the global leader in rentable home entertainment by providing outstanding service, selection, convenience and value.” Blockbuster is an American based chain of retail stores renting DVD, Blu Ray, and video games. They have over 9,000 locations in the US and 25 other countries worldwide. It is headquartered in the Renaissance Tower located in Dallas, Texas. The first store was opened in Dallas, Texas 1985 by David Cook. Cook had started a company called Cook Data Services Inc. in 1982 selling software to Texas’s oil and gas industries.[i] When the industry went flat Cook was searching for another source of revenue. His wife a movie fan suggested getting into the movie rental business. At the time rental stores were small, specialized, and inefficient. These stores were mainly family oriented stores that provided few former big hit movies. Cook recognized if they displayed the movies, provided a large former big hits selection, and set up a computerized system he could provide a higher...

Similar Documents

Premium Essay

Vertex Case Study

...whole that includes Vertex’s own financial position, strategic implications, a quantitative analysis of its Portfolios with realistic estimations and a risk analysis of the portfolios. 1. Vertex finacial analysis As per Vertex’s income statement(exhibit- 2B), it is clear that Vertex R&D expenditures in most of the preceeding years until 2002 has exceeded its revenue to the tune of 120% of its revenue in 2002 . The net income has been negative for all these years and the company is yet to prove itself in the stock market and gain investor’s confidence (exhibit-5). As per exhibit-2a, though Vertex’s cash position is strong, most of it (~50%) is through convertible debt and unless Vertex creates a breakthrough in the market through block buster drugs or substantial revenue it is unlikely that Vertex can attract funds or generate interestes in the market for additional funding for its projects. Also in oder to scale its operations e.g. sales and marketing, additional infrastructure it is impeartive that Vertex has to curtail its spending on R&D. Vertex’s market perception can be observed in its stock position (exhibit-5). Vertex’s shares have been underperforming vis-à-vis the market for the last 8 years except 200-2001. The implications of this financial situation mandates that Vertex, at this stage should chose projects that have a...

Words: 1263 - Pages: 6

Free Essay


...Busters started out as a single kiosk in 2010 under the ownership of JaJa Binks and Manager Dwight Smeadly. We currently employee three part time employees. Due to the success of the current business model over the last three years we are looking to expand to a second location. Should the second store be as successful as the first we would look at expanding every three to five years to avoid rapid expansion. Management has combined experience of eighteen years’ experience. Highlights Objectives Our immediate goal is to expand to our second location. Our long term goals are to grow into a chain throughout the city and perhaps the country. Mission Statement To bring convenience and quality to corporate America by providing high quality food and snacks at a low price. Keys to Success The key to success is to continue to continue to conveniently provide customers a various sundry of items at a fair price to maintain our competitive advantage of convenience. Description of Business Like businesses that operate in fairs and airports, Busters fills the needs of convenience to corporate America. Many employees lack the time to make a separate stop will going into work or on their lunch break. Our competitive advantage is that we are located in the lobby, a central place that is convenient to the entire building. Company Ownership/Legal Entity The company is set up as a sole proprietorship owned and operated by JaJa Binks Location Our current location is on the......

Words: 919 - Pages: 4

Free Essay


...caused him to drive off the road and wreck. He was saved by a woman named Annie Wilks. Early morning the next day he wakes up in pain and Annie introduces herself to him as his number one fan. Paul is flattered by her remarks on how talented he is at writing. As the time passes Paul starts to see what Annie really is like as she unveils her crazy self. While the people that know Paul are concerned about his disappearance. The sheriff later finds his car buried under the snow but was presumed dead since he had gotten out of the car. Back at Annie’s she introduces her pet pig named Misery to Paul, she then explains why she named her pig Misery. She first started reading Misery when her husband left her because reading the book helped her block her from the problems she had to face outside. When she purchased one of Paul’s newest books she had started reading it but later that night she went into his room angry asking why he killed Misery in the book then angrily started to shake the bed violently. She goes into the bedroom and forces him to burn his newly written book just so he can bring Misery back from the dead. Paul stops taking his pain killers because he thinks they are not helping him at all. He decides to save the medicine powder from the pills in a paper envelope. Annie buys him a used typewriter and the materials necessary to begin...

Words: 914 - Pages: 4

Premium Essay

The Chronicle expand Busters from a one-store to two-store operation. b) Busters is a small retail store located in the lobby of a thriving large office building. It currently has three employees and sells snacks, sandwiches, beverages, cards, newspaper, books and small gift items. c) Ultimately, we hope to expand Busters so that it becomes a chain of 10-15 stores situated in the downtown office buildings. Statement of purpose The purpose of this Business Plan is to outline our current operations and map out our plans for expansion. Our goals are to raise additional capital through private loans and private equity injections from individuals who see the potential in this opportunity. This business plan provides a description of a proposed venture to expand our current retail operation from a onestore operation to a two-store. The reason for developing this new business plan is to include our second store to be located in the Luhrs Building in the Downtown Sector in Phoenix, Arizona. This location is approximately four blocks from the current Buster’s. We have secured a lease, effective Jan 15th, 2014. This building is currently under construction with an expected completion date of 30 Mar 2014. This space, in the building will house Buster’s Inc when the multiple, state of the art office building opens for business. 2. Organization of the business and key players Marsha Jones is the owner and principle manager of Busters. The......

Words: 2019 - Pages: 9

Free Essay

Packet Sniffing Prevention

...Packet Sniffing Prevention Blocking a Wireless Sniffer-Public Connection • Disable the automatic connection feature in wireless settings • Configure a firewall that is automatically installed with Window updates. Enhance the strength of the firewall and increase security settings to “block all incoming connections” • Confirm the public network’s home page includes a privacy policy. (Networks that use encryption to protect other users from accessing files on the computer will come complete with a privacy policy. Networks that don’t have a privacy statement on the home page do not use encryption.) • Use sites with ‘https’ at the beginning of the URL instead of ‘http’. The ‘s’ = security Tips to Defend against Sniffing • Restrict the physical access to the network media to ensure that a packet sniffer is not able to be installed • Use encryption to protect confidential information • Permanetly add MAC address to the gateway to the ARP cache • Use static IP and static ARP table –prevents attackers from adding the spoofed ARP entries • Turn off network identification broadcast and restrict the network to authorized users • Use IPv6 instead of IPv4 • Use encrypted sessions like: SSh, SCP, SSL • Use security :PGP and S/Mipe, VPN, IPsec, TLS and OTP Packet Sniffing Prevention • Best way – Use Encryption • Secure Socket Layer –encapsulates data with help of original certificates and digital signatures • IP Security- adds security at packet......

Words: 551 - Pages: 3

Premium Essay

Management Skill Test

...1. Explain (trang 38) leadership and management skills organized by the competing values ? Give example for each skill. Incubation refers to an approach to creative activity through teamwork, involvement, and coordination among individuals. Creativity occurs by unlocking the potential that exists in interactions among people and networks of people. Individuals who approach creativity through incubation encourage people to work together, foster trust and cohesion, and empower others. Creativity arises from a collective mindset and shared values. Incubation is a better approach to achieving collective effort and involvement. Imagination focuses on experimentation, unique ideas, and revolutionary thinking. Fast competitive responses are more representative of investment creativity. Improvement focuses on incremental improvements, systematic approaches, and careful methods. Improvement is most appropriate when you are seeking to make incremental improvements to existing processes Investment focuses on fast responses, competitive approaches, and directly attacking problems. Investment is most appropriate when you are seeking to obtain competitive market advantage. 2. Distinguish terminal value and instrumental value. Give example A terminal value prescribes a desirable end, while an instrumental value prescribes the means. (nêu ra 18 cái) Instrumental values prescribe desirable standards of conduct or methods for attaining an end. (nêu hết) (điều kiện để gặt hái được...

Words: 1350 - Pages: 6

Premium Essay

Compare Tectonic Activity Impacts and Management Between Contrasting Case Studies (20 Marks)

...Tectonic activity can range from volcanic eruptions to earthquakes which themselves create many other effects that will impact the surrounding environment and people. In all recent eruptions at the volcanos I am going to discuss there has been no deaths to the local people. Apart from at the Chaiten volcano, in Chile, where 1 person died, reportedly from stress. At this volcano an eruption in 2008 caused 5000 people to be evacuated from nearby towns. An eruption at Montserrat in 1995 also caused 5000 people to be evacuated and placed into temporary shelter. Whereas when the Eyjafjallajokull volcano, in Iceland, erupted in 2010 around 500 people were evacuated from the area, although 10 million airline passengers were affected due to the vast ash cloud. In the 1991-1993 eruption of Mount Etna many people were evacuated and subsequently lost their homes to the lava flows. Other impacts of volcanic activity at Mount Etna were that there was a contaminated water supplies which was also seen at the Chaiten and Eyjafjallajokull volcanic eruptions. There was also many crops and farmland destroyed at Etna along with Montserrat. In The Chaiten eruption 80-90% of the town was damaged with 20-30% of it being completely destroyed, which when compared the eruption in Iceland is far more as there was no towns surrounding the volcano. At the Chaiten Montserrat and Icelandic eruptions, airports were closed which resulted in a huge fall in trade, however in Chile it was completely destroyed!......

Words: 612 - Pages: 3

Premium Essay

Impact of Personal Computer

...cannot be sent electronically, the post office and other similar service will continue to be sidelined in favor of electronic means. The old fashioned industry will be decimated but not entirely. The PC industry has also dramatically changed the entertainment industry. In years past, people had to go to theatres, and cinemas and video library stores to get VHS and watch movies. They even had to make a trip to the music store to buy a record. The PC has changed all of this. Movies can be downloaded in the comfort of your home or streamed through streaming services. Music can be downloaded instantly from the comfort of your home without a trip to the music store. The Video library and music store industry is dying a slow but sure death as block buster has shown. The PC has also led to the expansion of the video game industry. In the next 20...

Words: 688 - Pages: 3

Premium Essay

Karl Marx

...Karl maex A Marxist Analysis of an Italian Block Buster - By Vrinda Aggarwal Post the cold war Communism and Marxism remained mere philosophies which couldn't stand the test of time. They were either “impractical" modes of organizing economy and polity or rather were theories which were more advanced than the ages in which they were tested. It is thus the farsightedness of Marx which makes his theory extremely relevant for people to at least study. Marx principally focused on observation and historical analysis. According to him there were two Classes in the society - The Bourgeoisie and the Proletariat. The former was the class which owned all the resources and organized production, the later is the laboring class who own nothing but their own physical power to run the machines. Thus both the producers and the workers are in a symbiotic relationship. Still we see that the capitalist can survive for a longer time without the worker as compared to the vice versa, putting the workers in a compromising position. Thus in the fight of wage determination, the capitalists tend to win, thereby fixing the wage rate which is sufficient for survival (which according to Marx s living like cattle). According to the Marxist ideology, “when the capitalists and the laborers suffer equally, the worker suffers in his very existence, the capitalist in the profit on his dead mammon. The......

Words: 907 - Pages: 4

Free Essay


...but Growth is Optional Growth is the result of a Positive Outlook to CHANGE If you are not changing, you are not growing. Charles Darwin said: It is not the strongest of the species that survive, or the most intelligent, BUT the one most responsive to change: When something is inevitable your best bet is to: 1. Prepare for it 2. Adapt to it 3. Don’t be surprised by the next by always looking for it. Live a Life Of Expectancy…..expecting change. Dr. Spencer Johnson, #1 Best Seller of the Book “Who Moved My Cheese?” said Noticing small changes early helps you adapt to the bigger changes that are to come. If you don’t change your will become extinct: E.g.…is like Block Buster Video and Movie Gallery….with the event of RED BOX $1.00 There are no more Movie Galleries and Block Buster’s around why….change in movie rental industry. Lets establish here that GOD does not need to change, we do. And in fact he said “I am The LORD and I Change NOT” So if change is inevitable then we don’t have a choice but to change. Change What? LIFE: by that we talking Experience, Life Experiences The SUM total of your life now is made up of your experiences and the decisions you have made in the past. If you notice, it’s really how well you adapted to life’s changes determined your success today. If you change your life you change your experience and Vice Versa. By Experience we mean Spiritually, Emotionally, Mentally, Educationally, Financially, Physically We need to......

Words: 1331 - Pages: 6

Free Essay

Case Analysis

...In a world where being first is usually equated with being the best, celebrated management guru and author Jim Collins’ article ‘BEST BEATS FIRST’ debunks the myth of First Mover Advantage. He outlines with examples, how it is that the apparent ‘Johnny come lately’ endures in a market that swallows its very first players. The article, written in August 2000, cites many examples to show that for FMA to be applicable, there are strict conditions, which rarely hold true in reality and in the author’s words “…being first seldom proves to be a sustainable advantage and usually proves to be a liability” The author starts by pointing out how the inertia of late movers or followers is not a sustainable advantage to those who are first to build market share. This is especially true is the followers are established industry giants who move into a new market much later with their “vast pre-existing customer sets”. This often spells end-game for the pioneers who, in their complacence, have fallen prey to a more detrimental kind of inertia- Incumbent Inertia. Mr. Collins cites the example of VisiCalc, now virtually forgotten as the first major PC spreadsheet, as the late entrant Excel still reigns supreme. The author moves on to the now widely referenced example of how the PalmPilot learnt from the technical and design loopholes of the much-publicized Apple’s Newton MessagePad. The PalmPilot entered the market with a product with the script Graffiti which had none of Newton’s glitches,......

Words: 914 - Pages: 4

Premium Essay

Organization and Structure Paper

...Running head: Organizational Structure Paper Organizational Structure Paper Gina Fox MGT/230 Management Theory and Practice Axia College of University of Phoenix Patricia Ford March 4, 2013 AutoNation is the largest automotive retailer in the United States; it was founded in 1996 by entrepreneur H. Wayne Huizenga also founder of Block buster and Waste Management. The company headquarters in Fort Lauderdale, Florida. The current CEO is Mike Jackson, former CEO of Mercedes Benz of North America. The company owns and operates 215 dealerships across the USA, and has approximately 20,000 employees. It sells 32 different manufacturer brands nationwide and outsells every other automotive retailer in the U.S. it was ranked 197 in 2011 Fortune 500. Having so many stores in operation the structure of management has a strong foundation consisting of customer service, sales, internet, finance, insurance, vehicle service, and parts sales. Customer tracking of purchases, customer retention, vehicle inventories, vehicle purchasing, Marketing and sales trends in so many markets have followed a strong growth trend during tough economic times due to a foundationally strong company. Not having strong management, inventories, employees and sales goals in place have been the cause for like auto retailers to close their doors. All departments have to be linked together to stay competitive in any type of retail...

Words: 1075 - Pages: 5

Premium Essay

Myth in Movies

...Lecture I: Myth in Culture and the Arts Good morning and welcome to Prince George’s County Memorial Library system. Today’s topic is “Myth in culture and the arts,” we will discuss the 2004 version of Achilles as shown by the movie Troy. Most of you will remember the Hollywood block buster for its start studded cast of Brad Pitt, Eric Bana, and Orlando Bloom, but are you aware that this story is almost three thousand years old? The story of Achilles as a Trojan War hero is chronicled in The Iliad and is estimated to have been written Homer around 700 B.C.E. I’d like to spend the next hour or so discussing what the film version has in common with the ancient story as well as those sections that may have been altered to make the film more exciting. We will discuss this historical timeline behind Achilles’ entrance into the Trojan War, his perceived “invulnerability,” and the two phases of his involvement in the final battles. Much like Homer’s Iliad, the film is focuses on the hero Achilles of the Trojan War, but each story has a slightly different time span. The Trojan War was started over the abduction of Helen (of Sparta) wife to Menelaus, brother of the Mycenaean king, Agamemnon. Paris the youngest prince of Troy visits Sparta, seduces Helen, and sets sail for Troy with Helen at his side. According to the myths of Achilles’ life it wasn’t until the Trojan War started that Achilles’ mother, Thetis, received a prophecy that revealed Achilles would die at Troy and......

Words: 1054 - Pages: 5

Premium Essay

Cash Flim Review Social Prespective

...In the 2005 block buster movie titled “Crash” one of the three sociological perspectives can be observed in this movie regarding to equality and life in America. Set in Los Angeles, this movie probed social and cultural stereotypes, race and social biases, and the conflict perspective that often ensues as a result. The blatant manner in which these sociological issues are revealed is often startling for the viewer, but the shocking nature is intentional in order to promote self-examination and reflection. The conflict perspective is presented in this movie dons on tension between groups over power or the allocation of resources, including housing, money, access to services and political representation. This movie uses tension to advance the story line of each character forcing them into positions of conflict as well as dependence, and emphasizes the status of equality in America. In order to progress to a more equal society it is essential that Americans examine the biases presented in the movie Crash, especially those most often seen in modern society such as stereotyping, hate crimes, color blind racism and ethnocentrism. Stereotypes are defined as unreliable generalizations about all members of a group that do not recognize individual differences within the group. From the opening scene the movie depicts a car crash involving two police detectives and an Asian woman. The stereotyping begins immediately when the Asian woman tells the police officer writing the traffic......

Words: 1068 - Pages: 5

Free Essay

Briefly Explain Why Catel May Not Succed in Any Economy Including Kenya

...1. Briefly explain why cartels may not succeed in any economy including Kenya. A cartel is a formal (explicit) agreement among competing firms. It’s a formal organization of producers and manufacturers that agree to fix prices, marketing and production. Cartels usually occur in an oligopolistic industry, where there are a small number of sellers and usually involve homogenous products. Cartels members maybe agree on such matters as prices fixing, total industry output, market shares, allocation of customers, allocation of territories and the division of profits. There are either private or public cartels. One can distinguish private cartels from public cartels. In the public cartel a government is involved to enforce the cartel agreement, and the government's sovereignty shields such cartels from legal actions. private cartels are subject to legal liability under the antitrust laws now found in nearly every nation of the world. Many price fixing or market sharing agreements eventually either collapse or whither on the vine - here are some reasons: 1. Falling demand creates excess capacity in the industry e.g. during an economic downturn / recession - the classic example here is the deep tension within the OPEC oil cartel caused by the world economic recession which is causing a steep fall in the global demand for crude oil. Will OPEC deliver on planned output cuts in order to stabilize the price of crude at or around $50 a barrel? 2. Disruption caused by the entry of......

Words: 1120 - Pages: 5