Has e-marketing and the use of the internet hurt Blockbuster's dominance in the movie rental business and if it has what will they have to change in their business plan to regain their market shares? This case has studied the influence of new technologies for delivering movie rentals along with downloading movies directly to your television at home without a customer even getting off their couch. It also examines the impact DVD recorders are going to have on Blockbusters main products like DVD players and VCR's. The case talks about the threats these new innovations are going to have on Blockbusters business potential. Along with what Blockbuster has done to compete with their new competitors like Wal-Mart and Netflix. With the internet changing the way most profitable companies do business Blockbuster has to adapt and follow the new trends our generation. While studying this case, our group analyzed what Blockbuster's strengths and weakness are, combined with what opportunities they have to excel in the new way consumers watch movies and we established the threats that exist with new technology and competitors. Last our group has thought of some new idea's that could help them thrive in the future.
The problem that this case states is, will Blockbuster make the right business plan choices to allow them to compete with the innovation of products and technology of distributing movie rentals. Also is Blockbuster going to be able to adapt and succeed in this new era of renting movies?
The SWOT (Strengths, Weakness, Opportunities, and Threat) analysis for Blockbuster is both positive and negative. The major strength that Blockbuster Inc. has is a brand image over the competition. When new movie releases come out on Video o...
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...ir own movie channel that allows customers to buy and watch movie directly on their television. From their surveys, they should find out what their customers want and implement their suggestions into their business strategy. They need to train their employees to have the utmost customer satisfaction rating. This will keep customers coming back and hopefully attract new customers into the store. They also need to be able to help and answer customer's questions about movies. They should also have sales such as, buy one movie get one free, running periodically throughout the store. This will draw customers in to shop for the deals. They should also promote new movies available for sale in the store. They should always try to keep as many movies in stock so the movie is always there for the customer. This will keep them happy and coming back to rent more movies.
This formal report will show the history of Staples and Circuit City. Why did Staples is still in business as of today and why is Circuit City out of business? What were the business model or strategy used by Staples, and the strategy used by Circuit City? This report will analyze the history, business strategy, and financial history of the companies. The case also highlights the importance of sound strategic business decisions, target marketing, and customer input. Moreover, the case points to the need for a retailer in such a competitive marketplace, with both brick and online competitors, to find its competitive advantage and adhere to it.
According to Jim Collins, the undisciplined pursuit of more is reckless behavior, which sets the company at great risk even though their stock continues to climb. In my opinion, this was evident with Blockbuster as they decided to expand into everything entertainment and away from their ...
Marketing at the Vanguard Group. In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers. SITUATION ANALYSIS Highlighted SWOT Strengths Low fees strategy - a good idea.
When testing if a corporate strategy is leading the company to success, there are techniques that can be used to project data collected from the company. Long term attractiveness, competitive strength, and the nine cell industry attractiveness/business strength matrix are used to highlight strategic positions of each business in a diversified company. The industry attractiveness gages the prospects for long-term performance. Competitive strength measures how strong the units are positioned in a business in their industry. Lastly, the nine cell industry attractiveness/business strength matrix merges information on attractiveness and competitiveness to show where in the industry does a unit fit when it comes to long-term success. Walt Disney
The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in strategic focus has allowed Netflix to grow into the largest online entertainment subscriptions service in the United States with over 6.3 million subscribers (Netflix).
(1) Michel G. Rukstad, David Collis; The Walt Disney Company: The Entertainment King; Harvard Business School; 9-701-035; Rev. January 5, 2009
Summary of Major Risks and Factors that Blockbuster has Faced and Will Face in the Future
[3] Gandel, Stephen. "How Blockbuster Failed at Failing." TIME.com. N.p., 17 Oct. 2010. Web. 10 Dec. 2013.
The coexistence of films in America can be broken down into two categories the blockbuster film and the independent. Blockbuster films according to Lewis is a film that is enormously popular or was so costly to make that it must be successful to make a profit. An independent film also known as indie are films that are produced outside of the typical studio systems and are distributed by independent agencies. Blockbusters usually have a large marketing campaign to ensure the success of the film. Independent films tend to have smaller marketing and look for word of mouth after they have been released. Film festivals often provide smaller indie films the opportunity to screen their films with the hope of generating a buzz for the film.
be affected by the increased use of new technology such as televisions. now being attached to DVD?s and VCR?S, downloading, buying illegal. products. The.. Processes? the need to cut costs, speed up production and compete.
In Conclusion, the SWOT analysis shows that Redbox has many strengths to be profitable and has the potential for future growth in the industry. The DVD movie rental industry is still s...
The term Blockbuster was first defined as a significant audience response to a film, but later the term came to mean a high budgeted film that targeted mass markets with associated merchandising and the financial returns studios now depended on. Hollywood studios take a gamble each year relying on a small number of highly budgeted movie releases that can be extremely profitable or prove significant loss. Independent featured films are produced differently from the blockbuster because independent films are produced outside of the major film studio system and are distributed by independent entertainment agencies. The independent-movie began in the 1980s and 1990s, and some films were accidental as long as the movie stayed in toe with the blockbuster formula. Independent films in the 1990s had a significantly smaller budget with highly profiled directors (p. 389).
This work will determine the baseline of the current market situation for the company, which is essential for any further exercise and analysis. To understand how the business model correlates with the product marketing, need to see if there is any evident cause-effect relationship between product characteristics and the nature of the product company. If such correlation exists, it will be important to see the transition of such characteristics into the company marketing strategy. It can show how company’s strategies can be successfully addressed in a real-world scenario. Both internal and external analysis, SWOT matrix will help to determine the company’s current market position.
Although Hastings vowed to be divergent from other video retailers, his goal was to use an identical pricing strategy; however, one that would “appeal to customers [. . .] who used online shopping as an alternative to traveling to retail outlets” due to ease of access and more preferences (Shih, Kaufman, & Spinola, 2009, p. 3). Furthermore, Netflix launched its business at a time DVDs had barely hit the marketplace as the firm anticipated the new technology to be a promising venture. Nonetheless, within a year DVD players became so vast...
In conclusion, the vast technology change opens many opportunities for Netflix to grow. By assessing the market environment and challenges, it enables Netflix to overcome the obstacles to remain as the market leader. To achieve the future growth, Netflix should implement both strategic and tactical approaches to compete with others. The strategic and tactical business plans for Netflix are improving content libraries, developing more partnership with production firms, and staying with the low-pricing strategy.