Blockbuster Inc a Strategy and Competitive Analysis

Blockbuster Inc: A Strategy and Competitive Analysis April 27, 2007 Table of Contents Introduction 3 Blockbuster History 4 Competition and the State of the Rental Industry 5 The Strategy to Remain Competitive 6 Economic Factors 10 Supply Chain Strategy 11 Sales, Service and Promotion Strategy 13 Conclusion 16 Appendix 17 Exhibit 1 Blockbuster SWOT Analysis 17 Exhibit 2 17 Blockbuster Video Facts 17 Hollywood Video Facts 17 Netflix Facts 17 Exhibit 3 U.S. Home Video Industry: Historical Statistics†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦19 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20 Introduction Blockbuster Video is facing many challenges in trying to remain†¦show more content†¦Blockbuster has lost significant amounts of money in recent years: $1.6 billion in 2002, almost $1.0 billion in 2003, and $1.2 billion in 2004. The past few years, Blockbuster has been busy reinventing itself for a future in which video rentals may be on the way out. Competition and the State of the Rental Industry Technological and market evolution is finally catching up with the brick and mortar movie rental business. With all the new sources of competition available, Internet subscription services (Netflix), cheap DVDs at Wal-Mart, online movie download services, cable and satellite movie channels plus video-on-demand, Telco entry into the video business, it’s no wonder that Blockbuster and Hollywood Video are struggling. In 2005, Joe Flint and Kate Kelly reported in the Wall Street Journal that â€Å"Blockbuster Inc. is facing new pressures as signs increase that a sharp decline in the video-rental market is putting a strain on the company’s finances.† The company’s stock prices fell by 9.7% in late 2005, hitting a low of $4.60 per share. Then Hollywood Video (Movie Gallery Inc.) reported that sales at many of its stores dropped 10% the same quarter in 2005. Meanwhile, Netflix was gaining momentum and a customer base of almost six million subscribers (see ex hibit 2). Antioco admitted to the Wall Street Journal that the â€Å"rental industry is in the tank† and the firm’s SEC filing in 2005 said that it anticipates a â€Å"faster than expectedShow MoreRelatedCase Study : Video Concepts, Inc.1091 Words   |  5 Pages Business Communication Assignment Case Analysis and Report Writing Case report on Video Concepts, Inc. Submitted to: Professor Indra Nityanandan Submitted by : Vikram Choudhary Section- A Executive Summary Chad Rowan, an Entrepreneur by choice has been interested in doing business. 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