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Strategic Analysis

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Submitted By dblacks1823
Words 2020
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Failure Analysis/Change Strategy
LDR/531
October 27th, 2014
Professor Timothy De Long
Failure Analysis/Change Strategy
Introduction
Comparing and contrasting failing and thriving businesses provides insight into best business practices. Examining a failed company, Blockbuster, and a successful company, Intuit, offers an opportunity to learn from managerial mistakes and triumphs.
Failure and Success
Blockbuster Inc. is an example of a failed business. Their updated mission, objectives, and vision were altered too late to keep up with the changing demand for convenient internet streaming videos. The company stated their “mission is to provide our customers with the most convenient access to media entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, by-mail, vending and kiosks, online and at home. We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience" (Farfan, 2014 Blockbuster's Mission Statement). Their vision was to “provide our customers with the most convenient access to media entertainment delivered through multiple channels…. Offer customers a value-prices entertainment experience… broad product depth… with local neighborhood convenience” (Blockbuster Goes Bust – Outfoxed by Redbox, Licked by Netflix," 2014, para.8). The updated objectives were reasonable but were implemented too late to save the company.
Although Blockbuster had a strong brand name, large market share, had been in business for a relatively long time, a positive financial situation, and many retail stores, management failed to recognize changing demand in time to respond with a successful business plan (Wooldridge, Matulich, & Riddick Jr., 2007). In the 1990’s, Blockbusters business

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