Blockbuster case study analysis
Netflix's original series and documentaries, HBO's own TV shows are examples of content that is exclusive to these competitors of Blockbuster.
They alienated customers with strict late fees, unimaginative, warehouse-style stores, and no way to acquire the latest releases in a more convenient manner Newman, Those who seek to get a hold of the latest release without incurring the expense of buying it or trying to find space to store a collection of DVDs or those hoping to catch an oldie that has been on the shelf for a while.
The data that they can gather from these resources is essential for knowing when to introduce new products that adapt to the evolving needs of customers and how to develop an assortment plan that offers the products and services that are relevant.
This allows customers to be able watch the same movie that they rented on multiple watching devices without any issues because all of these systems are cohesive. At the same time, Netflix had certain advantages.
Pricing Strategy Blockbuster currently has an effective pricing strategy and should not stray too far from what is currently being implemented; consumers could be quite sensitive to any increase or change in rental prices. Dunkin' Brands Group, Inc. Cv cover letter for internal position The internet has expanded the geographic market for movie rentals and also created new competitors. Even though their mismanagement and blatant disregard for advancing technology brought Blockbuster down considerably, they are not out completely. How strong are the competitive forces in the movie rental marketplace? Running out of stock on a regular basis is not acceptable, especially while the company is on the brink of a comeback. The writer completed this assignment beautifully. They need to re-negotiate deals with vendors that will allow them to repay a portion of their debt while rebuilding strong relationships. Over the past 15 years, scientists have learned much about how these networks function and how his fate could have been avoided. The other method should be to copy a system similar to Wal-Marts Redbox vending machine. Some threats that Blockbuster and the entire video rental market experience are related to the increased rate of piracy, a declining market for video rental, and a struggling economy Miller, As it stands, Blockbuster is trying to repair the damage it has done to its relationship with its customers by offering the products and services they desire, at the right price, right time, and right place. Identification of Environmental Opportunities and Threats and Firm strengths and Weaknesses As a strength Blockbuster kept up with the trends changes and rise in technology in order to compete with its rivals, this was demonstrated when the firm invested significantly in their online subscription service in , including the launch of their Total Access plan in November. Location Strategy One retail location strategy that Blockbuster should consider is placing smaller retail stores in popular community strip shopping centers and power centers, specifically ones that contain electronic specialty stores like Best Buy or Radio Shack.
Blockbuster should also shift focus from movies to Television series as that segment is generating mss viewership. The main advantage that Blockbuster has over its competitors that is keeping it afloat is that it is allowed to carry videos as soon as they are released as opposed to the twenty-eight day rule many of its competitors, such as Netflix, face Merced, Although stores tend to be large and spacious now, Blockbuster plans to make future stores smaller with less merchandise and with a better layout for quick finds.
With clues hinting towards these possible advancements, customers wait in hopes of what changes Blockbuster is planning and promising to the masses. For the new and improved Blockbuster, value is a promise. In order for Blockbuster to continue to build and keep a strong relationship with its customers, the following positioning strategies need to be implemented. Partner with production houses or create its own: In an online webscape where streaming any form of media is a click away, exclusivity of content is key. Today, Hastings is widely hailed as a genius and Antioco is considered a fool. This was the main reason why I did not want to work there anymore. In August , Blockbuster introduced an online DVD rental service to compete with the established market leader, Netflix , and to be able to keep up with the current trends and technology. The case method should be to copy a system similar to Wal-Marts Redbox blockbuster machine. Nicholas Shepherd also mentioned: Look for a new ad campaign to hit in the spring of that focuses on what we provide over the competition and that brings to light the same friendly Blockbuster we all grew up with, but with all the improvements the digital world can provide N. With the evolution of the movie rental industry, providing thousands of movie titles in one place has turned into an easy feat and has forced changes upon the industry. It may as well be seen by consumers as still outdated and too late and entrant into the digital entertainment world. The goal of the company was to make it a lot easier for customers to select and rent movies and to eliminate the hassles involved in picking up and returning them Developing and keeping strong relationships with their vendors is also essential to having satisfied customers and keeping a sustainable competitive advantage.
For any given idea, there are going to be people with varying levels of resistance. Cook and Associates, Inc.
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