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Blockbuster Case

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Blockbuster: Movie Rentals in the Digital Era

SWOT Analysis

Internal Strengths

If a strength or a weakness is ambiguous, explain the reasons that you have to classify it as a strength or a weakness.

* Overall size of the company: Blockbuster is #1 in the industry. In the entertainment industry size is very important. Large companies are able to get better deals from movie studios. * Management team is open change. The management of the company appears to be open to new ideas. This will allow the company to adopt to new challenges. * Aggressive expansion and acquisition performance. The company seems willing to expand to new areas. They have a successful record of successfully acquiring other businesses. * Established name and customer loyalty. The company has a very widely recognized name. Many consumers are very loyal to Blockbuster. It is very likely that they will purchase the company’s products if they are offered through a different format. * Offers rentals via stores and online * Strong international presence. Blockbuster has established a very strong brand equity in many countries of the world. This is a major strength if the company wants to expand internationally.

Internal Weaknesses

* Many format changes over its history has created consistency issues. This has resulted in confusion among consumers. Many consumers have negative feelings towards Blockbuster based on their past experiences. * Lack of first mover advantage in online rentals. Most consumers do not associate the Blockbuster name with online rentals. This may make it harder for the company to move into new markets. * Struggling with the success of its online business * Struggling with failed marketing initiatives in response to competition.

External Opportunities

As you can see these opportunities are not controlled...

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