Blockbuster Essay
Blockbuster LLC, also known as Blockbuster and previously known as Blockbuster Video Entertainment, Inc., was established and founded in Dallas, Texas in 1985 by David Cook. The company was a provider of home movie and video game rental services by video rental shops, DVD-by-mail, streaming, video on demand and cinema theater. When Blockbuster was at its peak success, it comprised of nearly 60,000 employees and over 9,000 stores. But the company could not sustain much with the emerging competitive market such as Netflix and RedBox, went bankrupt by the end of 2010, after its 25 years of foundation (Why health insurers may be destined to follow Blockbuster into Irrevelence, 2015). Dish Network took over the company on 2011 and closed many of
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But in spite of all these knowledge he was shrewd and failed to see that the Netflix merger though didn’t seem right in the beginning could lead the company to a greatest downfall. In the last 15 years, scientists and many of the industrialist have found out how these networks function and fate of the company could have been avoided (Greg, 2014).
When Hastings went to Dallas and gave a proposed in 2000, Blockbuster was well established and a renowned video rental industry. The company was located at thousands of retail places with millions of customers and had huge budget in the market along with great operating team, sufficient enough to compete with the market. Thus it was very obvious that Antioco and his team hesitated to just handing over the brand to a just the beginner company as the team had worked hard to maintain the status and reputation of the firm.
But Blockbuster’s concept had certain weakness that was not known during that time. It had earned much amount of money by charging the late fees of their customers, and that was the essential part of Blockbuster’s revenue model. But the ugly truth of the company was that the company’s profits had highly relied on disciplining its
But in spite of all these knowledge he was shrewd and failed to see that the Netflix merger though didn’t seem right in the beginning could lead the company to a greatest downfall. In the last 15 years, scientists and many of the industrialist have found out how these networks function and fate of the company could have been avoided (Greg, 2014).
When Hastings went to Dallas and gave a proposed in 2000, Blockbuster was well established and a renowned video rental industry. The company was located at thousands of retail places with millions of customers and had huge budget in the market along with great operating team, sufficient enough to compete with the market. Thus it was very obvious that Antioco and his team hesitated to just handing over the brand to a just the beginner company as the team had worked hard to maintain the status and reputation of the firm.
But Blockbuster’s concept had certain weakness that was not known during that time. It had earned much amount of money by charging the late fees of their customers, and that was the essential part of Blockbuster’s revenue model. But the ugly truth of the company was that the company’s profits had highly relied on disciplining its