Blockbuster Business Analysis
Table of contents
1 Introduction
The rental movie market is a high competitive and dynamic market, dominated for several years by Blockbuster, with its pioneer business model of delivering convenience to the costumers looking for home entertainment. The company was a model for the industry during the 80’s, 90’s, but with the new age of online movies, the consumer behavior changed drastically, and other companies, as Netflix and Redbox, providing online content and innovative services, started to dominate this new market. Nowadays, Blockbuster’s business model seems to be obsolete, since the company could not keep up with the changes, almost closing the doors in 2010 when a bankruptcy process was open, the company struggles to reinvent itself, and regains its position in a reformed market.
This Business Review and Analyze Report aims to present an overview of the rental movies industry, how the company is inserted therein, the competitive advantages that still has, the factors which can affect the business, the new strategy model proposal and the changes which can be made, with its properly analysis, to reinsert the company in the market. The report will consist in the Company Analysis (background and current situation), the Industry Analysis (PESTEL Analysis and Porter’s 5 forces), the SWOT Analysis, GAP Analysis and Cost-Benefit Analysis, following this structure, to present all the main data and analysis needed to change the Blockbuster new way of doing business.
2 Company Analysis
Blockbuster is a North American provider of home movie and video game rental services. The first store was opened in October/1985 in Dallas, Texas, by its founder David Cook, who innovated the market using his experience with managing databases. The chain began as a competitor to smaller video rental stores with a strategy to provide a much wider selection of movies and eventually game rentals. Throughout the year, as the business became stronger, the
1 Introduction
The rental movie market is a high competitive and dynamic market, dominated for several years by Blockbuster, with its pioneer business model of delivering convenience to the costumers looking for home entertainment. The company was a model for the industry during the 80’s, 90’s, but with the new age of online movies, the consumer behavior changed drastically, and other companies, as Netflix and Redbox, providing online content and innovative services, started to dominate this new market. Nowadays, Blockbuster’s business model seems to be obsolete, since the company could not keep up with the changes, almost closing the doors in 2010 when a bankruptcy process was open, the company struggles to reinvent itself, and regains its position in a reformed market.
This Business Review and Analyze Report aims to present an overview of the rental movies industry, how the company is inserted therein, the competitive advantages that still has, the factors which can affect the business, the new strategy model proposal and the changes which can be made, with its properly analysis, to reinsert the company in the market. The report will consist in the Company Analysis (background and current situation), the Industry Analysis (PESTEL Analysis and Porter’s 5 forces), the SWOT Analysis, GAP Analysis and Cost-Benefit Analysis, following this structure, to present all the main data and analysis needed to change the Blockbuster new way of doing business.
2 Company Analysis
Blockbuster is a North American provider of home movie and video game rental services. The first store was opened in October/1985 in Dallas, Texas, by its founder David Cook, who innovated the market using his experience with managing databases. The chain began as a competitor to smaller video rental stores with a strategy to provide a much wider selection of movies and eventually game rentals. Throughout the year, as the business became stronger, the
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