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Blockbuster Video

In: Business and Management

Submitted By tetratkin
Words 1984
Pages 8
Blockbuster video
Case study
By Ange li n a I., An to n G., N ah ia n U.

понедельник, 5 декабря 11 г.

Introduction ability to analyze the company’s performance over the years is a duty of every manager. Today we are going to try to analyze and look deeper into the case of Blockbuster and it's evolution over the years .In order to do this, we are going to answer several questions, which will help you to understand the problems, that Blockbuster faced and solutions
The it's implemented.

понедельник, 5 декабря 11 г.

понедельник, 5 декабря 11 г.

Business problems and decisions
Changing rental patterns. households acquired As more

cable TV, customers no longer wanted to rent older videos. With the new approach, customers only cared about the new releases. But, at $65 a tape, those costs were high—and after about a month, people moved on to rent the next release, so the store no longer received money to cover the original purchase price.
In 1997, CEO John Antioco found a solution. He negotiated a deal with the leading

Hollywood studios. Blockbuster would purchase tapes for $6 upfront, then give the studios 40 percent of the rental revenue. Competitors could not match the cost savings. About 2,500 of them (10 percent of the U.S. market) went out of business.

понедельник, 5 декабря 11 г.

Business problems and decisions
But, entertainment technology rolled on. By 2001, the world was quickly

switching to DVDs

late 2001, Blockbuster again had to write down its inventory of tapes (and many video games) by $450 million. Eliminating 25 percent of its VHS inventory, the company moved into DVDs. The growth in DVDs continued. By early 2002, U.S. consumers had purchased over 31 million DVD players. for movies. In

Viacom got serious about divesting Blockbuster. In a press release on June 18, 2004, Viacom announced that it would split off…...

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