Premium Essay

Blockbuster vs Hollywood Video

In: Business and Management

Submitted By jes0419
Words 2868
Pages 12
Jackie Sutton
Case Study Report

COMPANY NAME/WEBSITE/INDUSTRY
Company Name: Blockbuster Website: www.blockbuster.com Industry: Video rental
BACKGROUND/HISTORY
Blockbuster was founded by David Cook and opened its first store in 1985 in Dallas, Texas. When the company first began the main focus was on home video rentals but in 1987 Blockbuster won a major lawsuit against Nintendo and paved the way for customers to rent video games as well. The company reached its peak in 2009 and then started to see intense competition from other video rental companies like Netflix. Although the company filed for bankruptcy in 2010, it was purchased by the Dish Network family in 2011 and “is a leading global provider of in-home movie and game entertainment with over 2,500 stores throughout the Americas, Europe, Asia and Australia. The Company is one of the strongest and most recognizable entertainment brands in the world.” (“Company overview,” 2011). Prior to its 2011 Dish Network acquisition, James Keyes served as the CEO. “Dish Network reported that its Blockbuster unit had turned a $13.9 million profit for the first quarter on revenue of nearly $334 million” (Frankel, 2012).
SWOT ANALYSIS Strengths * High brand familiarity. * Successful operations in global markets. * Loyal customer base. * Wide array of choices offered to customers. | Weaknesses * High operating costs. * More expensive than some competitors offering same services. * Rentals need to be returned within a specified time frame. | Opportunities * Increased collaborations with other companies. * Recent acquisition by Dish Network. * Acquisition of online movie download provider Movielink. | Threats * Intense competition from rival companies. * On-demand movie options offered by cable companies. * Slow economy leads consumers to spend less on entertainment. |

ANALYSIS VIA…...

Similar Documents

Premium Essay

Nonlinear Pro vs Quick Takes Video

...NonLinear Pro vs Quick Takes Video NonLinear Pro is threatening Quick Takes Video for breach of contract if they do not pay the $5,000 invoice they received. However, Quick Takes Video is threatening to countersue for loss of employee hours on the software. Also, Quick Takes Video was under the impression that the paper that was signed was nothing more than a packing slip. There was a verbal agreement between Hal, owner of Quick Takes video, and the sales guy from NonLinear pro at the tradeshow. The agreement was that NonLinear Pro would provide Quick Takes Video with a 4 week trial of the program. In a traditional litigation case, NonLinear Pro would be considered the plaintiff. The plaintiff would be required to file a formal complaint against Quick Takes Video. In this complaint, the plaintiff would need to list the facts and the laws that were violated. The court would then notify the defendant of the complaint and allow the defendant to respond. Hal now has the option of deciding to use an ADR. There are different ADR’s that can be used. Three that fit this situation are arbitration, mediation, and mini-trial. Arbitration is when both parties choose an impartial third party to hear and decide the dispute (Cheeseman, p906). Mediation is where a mediator would assist the parties in deciding on settlement of their dispute (Cheeseman, p917). A mini-trial is a private proceeding that the parties volunteer to. During this proceeding, the lawyers present a shortened......

Words: 344 - Pages: 2

Free Essay

Blockbuster Video

...Blockbuster Fights for Survival against Intense Competition - Blockbuster struggling to compete with competition (Netflix, Apple, Amazon, cable providers, etc) - Blockbuster video started in 1985, Wayne Huizenga bought Blockbuster in 1987, took company from 130 stores to 1,500 - Acquired Sound Warehouse and Music Plus in 92, also purchased Cityvision which provided 975 stores in UK - Bill Fields came in as CEO, he had the Wal-Mart attitude and he closed down 50 stores, he also moved the headquarters to Texas from Florida, some upper management did not want to relocate and this caused vacancies. - John Antioco new CEO changes – repositioned back to traditional competitive advantage in home entertainment rentals, finalized transformation of Blockbuster back to focusing on movie and game rental industry - 2003 – Blockbuster launched rental subscription program which allowed subscribers to rent an unlimited numbers of movies - Blockbuster was able to capitalize on home entertainment growth trends, with blockbuster.com - James keys replaced Antioco in 2007, he wanted to use technology to transform the company, and he wanted to change the image of the company from rental shop to a content shop - Stock of blockbuster went from $26 to $4.30 from 2002 to 2007; Keyes joined Blockbuster when they were closing down many shops - Movielink created by 5 major Hollywood studios, blockbuster bought this company because they studios did not have experience. - From 2005 to 2007,......

Words: 339 - Pages: 2

Free Essay

The Harmful Effects of Video Games vs. the Benefits

...The Harmful Effects of Video Games Vs. The Benefits Aaron Winterstein October 14, 2012 The Harmful Affects of Video Games Vs. The Benefits There are many questions about video games and how they affect children. I believe that video games are harmful to children in many ways. Many studies have tried to prove that they are harmful, as well that they are also beneficial to children. It is difficult to understand which argument is the truth behind the research. I believe that the harmful effects are greater than the benefits. The benefits that the children can learn through video games can also be taught to them other ways besides just video games. Video games are not the only way to teach the children values and how to live properly. Video games are damaging the way that our children think and act, as well as harming their bodies by teaching them wrong morals about themselves and others. The first way that video games are harming our youth is psychologically. There was a study published in the Journal of personality and Social Psychology that children that were playing video games were reported to be more aggressive than those of children that do not play video games. Previous research has documented that playing violent video games has various negative effects on social behavior in that it causes an increase in aggressive behavior and a decrease in prosocial......

Words: 1501 - Pages: 7

Premium Essay

Blockbuster vs Netflix

...Blockbuster vs. Netflix Introduction Blockbuster opened in 1985 and in its “first 20 years of business, the movie rental giant opened 9.100 stores in 25 countries” (Laudon, 2007, p. 121).   Netflix launched in 1998 using a new business model and became Blockbusters biggest threat. The paradigm shift in the rental industry from having to travel to a store and rent a movie to being able to have a movie delivered to your mailbox changed the way people think about media entertainment. The next shift will be having the technology to download movies and shows directly to a television. Analysis Blockbuster and Netflix are using two different information system strategies. Blockbuster, which is a traditional retail store with a physical location focused on creating a market niche.   It used “an automated point-of-sale system” and was able to use “these data to monitor sales and to analyze the demographics, and rental and sales patterns for each store to improve its marketing decisions” (Laudon, 2007, p. 121).   Netflix came onto the scene with a completely different strategy, product differentiation. Emphasizing convenience, they created a system to allow consumers to order movies sent to their customers homes and returned on the individual’s time schedule. Netflix was able to use mass customization and give consumers an individually tailored service without increasing the needed resources. Using the Business Value Chain Model, Netflix has used information technology on......

Words: 1034 - Pages: 5

Premium Essay

Gov vs Video Games

...Government vs. Video Games Michael Winchester Governments are strongly against kids playing video games and the government is wrong. The government thinks if kids are play video games that have graphic violence, sex, violent scenes, gory scenes, partial nudity, full nudity, portrayal of criminal behavior they will become criminals. There is a wide assortment of games out there and not all of them are bad. The games that those people think are bad are rated for adults only, not for kids and it’s the parents fault for letting kids play them. Video games are for fun, they’re not a reference for how to be a violent person. Parents should be monitoring their kids more often. I am a very firm believer in the thought that video games are meant to be for fun and do not affect how violent a person may become. The Government looks at video games completely the wrong way. One of their thoughts is that when someone plays to many video games it can make them violent and can make them into criminals. Looking at the classic game of "Cops and Robbers" and "Cowboys and Indians": children pretend to rob banks and shoot cops dead; toy guns or imaginary weapons are aimed at opponents; losers are supposed to "play dead." Fast-forward to the present and the debate over video game regulation. (Thierer, 2003) The recently introduced bill H.R. 669 by Rep. Joe Baca (D-CA), "The Protect Children from Video Game Sex and Violence Act of 2003." This bill would impose fines on anyone who sells or......

Words: 2659 - Pages: 11

Premium Essay

Failure Analysis/Change Strategy: Blockbuster vs Netflix

...Failure Analysis/Change Strategy: Blockbuster vs Netflix LDR/531 Failure Analysis/Change Strategy: Blockbuster vs Netflix Organizational Behavior Theories The organizational behavior theories which explains Netflix’s success are two; decision-making and systems approaches. Netflix made the monumental decision to become a virtual dvd rental versus a brick and mortor provided a solution in the company’s goal and vision to be ahead of technological advances in the industry. Netflix took on the systems approach in understanding and measuring the company’s input and output processes. Netflix uses the systems approach to integrate and drive processes in developing adaptive capacities, driving innovation. Blockbusters organizational behavior theory focus was on scientific leadership. The company placed a great deal of focus on how to become more effective in the company’s brick and mortor business, redefining company objectives and direction. How employing this theory failed the company was the leadership decision to not pledge the same level or more focus on the click initiative which the company could not capture the needed momentum in becoming competitive with Netflix. Blockbuster could have had a more competitive edge over Netflix sustaining its presence in the industry if only the company could define better performance practices leveraging its click business over its brick and mortor presence. Role of the organization on the Fail/Success So how did an upstart......

Words: 1224 - Pages: 5

Premium Essay

Blockbuster-V-Netflix

...Case Analysis Blockbuster vs. Netflix 1. Mission/External Analysis 2. Industrial Analysis 3. Internal Analysis 4. Financial Analysis 5. Assumptions/Challenge/Objectives 6. Alternative Analysis 7. Resolution For years Blockbuster dominated the movie rental scene crushing the local competition with its wide selection, huge inventories and longer rental periods. Over the years though, Blockbuster has lost it strangle hold over the competition and filed for Chapter 11 bankruptcy protection in September 2010. Blockbuster competition won because they evolved to meet the demands of the current customer. The biggest rival that Blockbuster competed with was Netflix, which was started in 1997 and established its subscription service in 1999. The competitive forces in the movie rental marketplace expanded in the early 90’s with the creation of the DVD movies. Like pervious attempts to move away from VHS tapes, DVDs players were very costly at first. As time went on, DVD’s players became cheaper to produce and many of them where incorporated with home theater systems due to the demand of people who wanted to watch movies on their own big screen. With this boom in DVDs’ it created a demand in the movie rental marketplace. Since Blockbuster was apart of Viacom, which was a multimedia conglomerate, they were able to provide them with supplier power and buyer power. Blockbuster was able to outspend the competition, which......

Words: 1620 - Pages: 7

Premium Essay

Hollywood vs Bollywood

...Hollywood VS Bollywood Bombay is the largest city in world. Also its economic in power support Indian film industry become one of the largest movie market in world. With the support of the Indian Government and the movie industry. The Indian movie become popular all over the world and be accepted by people from different parts of the world. The unique Indian culture is also the reason making the bollywood movie dynamic. In another hand. Hollywood film has been an important part of our life by and by.and almost every people watched many Hollywood film. Like the Hollywood coverage of the American culture,the culture over the Hollywood culture exhibiton highlighted the gap between scholarly trends and popular understanding of history. The advantage of Bollywood film is that its story including the emotional elements which makes audience get touched easily. Besides,The Indian traditional dance and music in the film also consists the typical bollywood film. For example . An famous Indian movie “DDLJ” ,girl meets guys and girl begin to sing and dance inexplicably,hundred of people singing together ,the location from village in India transfer to the Alps in Switzerland Suddently. These are typical plots in Indian movie but its music and dance have attracted many audience. Give a example,“Bombay Dreams” telling a traditional love story. Even though its story is old fashioned but as a musical film,Its music have combined traditional Indian music and a lot of pieces of......

Words: 544 - Pages: 3

Premium Essay

Netflix vs Blockbuster

...consumer awareness of Netflix name, its logo, and its movie rental service. Netflix had 2007 revenues of $1.2 billion (up from $501 million in 2004) and its 100,000 movie titles (up from 55,000 in 2005).By July 2008 Netflix had 8.4 million subscribers. Block Buster: Blockbuster was founded in Dallas Texas in 1985. Blockbuster had followed an extensive growth strategy, and achieving a peak of 9,094 companies operated and franchised movie stores worldwide by the year-end 2004. Blockbuster had 3,291 international store locations at the year end 2004 were all over among almost 24 countries, but 87% of their stores were in following countries: Great Britain (897), Canada (426), Australia (408), Mexico (317), Italy (241), Ireland (199), Brazil (131), Taiwan (128) and Spain (106). During 2005 and 2007 due to amid adverse market and competitive conditions and high losses Blockbuster closed 700 company operated sites in United States and 500 of its company operated sites outside United States. The total numbers of franchised stores were fallen slowly from 1,829 to 1,757 as of year-end 2007. An additional 137 company owned stores were closed and sold worldwide in the first six months of 2008. As of July 2008, Blockbuster had a total of 7,619 in the United States and 20 other countries, including 3,939 company-operated stores in the United States, 2,013 company-operated stores outside the United States, and 1,630 franchised stores domestically and internationally. Block Buster had......

Words: 2629 - Pages: 11

Premium Essay

Case 8 Netflix Versus Blockbuster Versus Video-on-Demand

...UNIVERSITY OF TECHNOLOGY, SYDNEY FACULTY OF BUSINESS GRADUATE SCHOOL OF BUSINESS SCHOOL OF MANAGEMENT Written Case Analysis Case 8 Netflix versus Blockbuster versus Video-on-Demand Report to: Martin Completed as part of the requirements for Strategic Management (21715) Contents Executive Summary p. 3 Introduction p. 4 Volkswagen AG Pre-1993 p. 4 Issues facing the auto industry and Volkswagen AG in the 1990’s p. 5 Financial performance between 1993 and 2001 p. 6 Labour policies p. 7 Leadership p. 8 Recommendations p. 9 Conclusion p. 9 References p. 10 Appendices Executive Summary With the autocratic management style of Ferdinand Piëch, VW was able to expand and grow during a time when there were increasing cost pressures on automakers world wide. Innovations in the manufacturing process through integration and redesign of the value chain helped VW group reduce set up costs, manufacturing costs and labour costs while significantly reducing development times and costs of new models. Although Piëch was basically a one man band having control of the R & D, Quality, Production and Purchasing departments, his direction has left the incoming CEO with a solid base to further develop and grow the VW group. His vision and drive have placed VW in the position of number one automaker in Europe with market share well ahead of the nearest competitor. He has also......

Words: 3296 - Pages: 14

Free Essay

Blockbuster

...* Should Blockbuster have known that dramatic change to their Business Plans would be necessary? Blockbuster didn’t have a technology problem, because digital distribution was minimal, but rather a customer problem. It gave customers no reason to visit stores in lieu of the latest and greatest hit. (www.forbes.com/.../the-internet-didnt-kill-blockbuster-the-compa... Forbes Nov 8, 2013) * When should they have sensed or perceived a change to their business would be necessary? Lack of ease of accessibility and higher prices in connection to other video rental outlets. Blockbusters main competitors such as Netflix, Redbox, and many On Demand services seem to have a much better grasp of the importance of instant access at a lower price. (Blockbuster Inc. (SWOT analysis). http://www.yousigma.com/comparativeanalysis/blockbusterinc.html) * When should they have innovated or changed their plans to comprehend the perceived changes? Blockbuster’s biggest mistakes were that it failed to modernize its business strategy to include a multi-channel avenue for its customers to decide how they wanted to rent movies. Movie renters were and still are moving away from the traditional format of renting movies. Failure to adapt to changing consumer behavior and new technology helped companies like Netflix and Redbox gain considerable ground in the video rental industry. * What should they have considered when looking at their Porter’s Model? What do you think kept them from......

Words: 980 - Pages: 4

Premium Essay

The Fall of Blockbuster Video

...The Closing of Blockbuster Video’s Stores The Closing of Blockbuster Video’s Stores Hanna, Peter Southern New Hampshire University OL-500 Hanna, Peter Southern New Hampshire University OL-500 Abstract: With increasing competition and the growth of technology, it is important that organizations maintain focus on an innovative and clear strategic direction as well as always striving for customer satisfaction. There are four major issues, inefficient and arrogant strategic direction, customer dissatisfaction, fiscal irresponsibility and a lack of innovation that ultimately led to the demise of the video rental “Kingpin” also known as Blockbuster Video. Introduction: Organizational strength relies on its infrastructure and strategic management. The study of organizational behavior within any organization is intriguing. Success relies on many factors that involve leadership, strategic vision and a motivated team poised for the challenges of the day to day operations of the organization. Blockbuster Video skyrocketed to the top of the movie entertainment empire. A Leader in the entertainment industry, Blockbuster Video was plagued by challenges and failures that eventually led to their ultimate demise after a short lived 25 years. This research paper will attempt to answer how the King of the video entertainment empire withered away, even after years of company acquisitions and finally merging with Dish Network. Blockbuster Video faced fierce......

Words: 3480 - Pages: 14

Premium Essay

Blockbuster Video

...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...

Words: 1984 - Pages: 8

Premium Essay

Blockbuster vs Netflix

...Blockbuster vs Netflix Q1. (a) What is Blockbuster’s Business Model? (b) How successful has it been? Ans: (a) We can define Blockbuster’s Business Model as a- Bricks Model. Because, * It has video rentals & sales stores. * Customers have to come to the stores to buy or rent movies from these stores. * It is a total physical process. (b) It was a successful model before Netflix entered into the video rental market. The reason behind that is, * They’ve 40% share of the whole U.S. video rental market . * From the video sales they’ve got $16 billion. * Enjoying a market share that will be gaining by very few firms in any industry. Q2. (a) What industry & technology for as have challenged that business model? (b) What problems why’ve created? Ans: (a) Industry -- Netflix Inc, 1998. Technology -- Online based video rental & sales. * Also offering postal service. * No need for a physical verification. (b) Problems created by that industry are, * They’ve offering value to this customer’s by giving the internet service. * People don’t need to go out to buy movies. * No more transportation cost will occur. Q3. (a) Is Blockbuster developing successful solutions to its problem? ...

Words: 715 - Pages: 3

Premium Essay

Blockbuster

...(Block)Busting the Movie Rental Industry June 1, 2005 BEM 106 Final Paper Zhan Wang Harrison Stein Chin Yeung Siu Ruiqi Rachel Wang Introduction: Since the 1910s when Charlie Chaplin created his first silent films, movies have been a staple in American culture. For over half a century, “the big screen” was the only link between first released Hollywood films and captivated audiences nationwide. The advent of modern technology like the VHS tape and the DVD, however, has provided viewers with a convenient way of viewing movies, new and old, no longer playing in theaters. In addition, cost considerations have made DVDs and VHS tapes ideal for short-time rentals. Thus these inventions and the terms of their usage have helped to create a movie-rental market within the larger movie industry. Rentals and other theater substitutes have become essential to the movie watching experience because the theater no longer holds the monopoly it once did. While movie theaters are still widely popular, many people dislike the inconvenience of finding a local theater playing the right movie, driving there, and then standing in long lines to buy a ticket. Some do not appreciate the large crowds that often include cell phone talkers and loquacious teenagers. And some simply don’t want to shell out ten dollars to a movie that has the chance of being Ishtar. For whatever reason, there is a large demand for rentals and substitutes from audiences who want to see the movies......

Words: 4822 - Pages: 20