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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. |

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