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The Rise and Fall of Blockbuster

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The Rise and Fall of Blockbuster

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  • April 25, 2011
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Page 1 of 19
The rise and fall of Blockbuster.
How the definition of the industry can change your destiny

INDEX

EXECUTIVE SUMMARY1
INTRODUCTION2
THE COMPANY2
TRENDS AND ISSUE4
SITUATION OF THE MARKET4
TECHNOLOGY5
AMERICAN LIFESTYLE6
MARKETING MIX7
PRODUCT.8
PRICE9
PLACE.10
PROMOTION12
RECOMMANDATION AND CONCLUSION13
REFERENCES16
APPENDICES20
Appendix I: Porter’s 5 forces20
Appendix II: PESTLE analysis24
Appendix III: Blockbuster SWOT analysis28

EXECUTIVE SUMMARY

Blockbuster is a provider of rental movie and game entertainment with a worldwide presence. At the beginning the company was considered leader of its industry due to its capacity to customize a store to its neighborhood, offering different products to a wide range of customers. In the last years, since the emerging of new technologies and strong competitors in the market, the company has started to take a negative direction; moreover, due to its high fixed costs and financial problems, Blockbuster filed for Bankruptcy last September 2010. The purpose of this work is to analyze the company in depth, highlighting its main weaknesses and trying to suggest some strategies which could help the company become a profitable and successful business once again. An accurate study of its situational analysis (Porter’s 5 forces, PESTLE and SWOT analysis) reveals new trends and issues of the company which are related to technology and a new American lifestyle. A further focus on the target market and in particular on the marketing mix elements (product, price, place and promotion) helps to understand the marketing objectives of the company, the main one being the achievement of a steady increase in online market penetration by leveraging on its well-established brand image and by protecting its unique position as the operator that provides access across multiple delivery channels such as stores, kiosks and online. Finally some important recommendations related to...