Kyle C. Cooper
MGT450: Strategic Planning for Organizations
Instructor Sandra Watts
22 October 2012
The always changing world of technology creates a challenge for many older businesses that once thrived years ago. Americans along with many other countries are becoming centered around immediate gratification and in a way, lazy. Fast is better and right now wins. When Netflix came into the homes of millions, it almost seemed like the end of all other movie rental providers. A change in leadership from a recent buyout has saved Blockbuster and has placed them as a leader once again in the entertainment business. Blockbuster has a new strategic plan that seems to be working, but a look into a new strategic plan that analyzes the good and bad, might suggest that a new strategic plan is needed. My strategic plan will not only point out the opportunities, areas that need improvements, and distinctions, but layout the new strategic plan that will create success in Blockbuster for years down the road. Blockbuster Video has been around for many years providing new and old movies along with video games to be either purchased or rented for a small fee. David Cook left the oil business to open his first store, “He opened the first Blockbuster store in Dallas in October of 1985…With more than 8,000 VHS tapes in more than 6,500 titles” (Poggi, 2010). The company kept growing and overcoming obstacles to stay alive and compete with new technologies. Cook sold shares in his store, went international and “by 1993 there were more than 3,400 stores and Blockbuster was looking beyond its core video chain business to fuel growth” (Poggi, 2010). But with competitors like Netflix and Redbox, Blockbuster went bankrupt in 2010.
Dish network bought out Blockbuster after they filed for bankruptcy early in 2012. The new Blockbuster and its partner, Dish Network, have been working hand in hand to beat out Netflix and other DVD rental services. Netflix has raised their prices again and actually had to split their company in to two in late 2011, creating some hope for Blockbuster. Streaming Blockbuster is a good deal and you are now able to receive DVD’s in the mail and exchange them at any store in your local town, but the catch is that you have to have Dish network in order to have the new Blockbuster streaming option. Blockbuster still offers DVD’s, Blu-rays, and games at the one low price to be mailed out, but again you have to pay for the Dish network to be eligible for the streaming videos.
The new face lift on Blockbuster is distinct because they offer DVD, blu-ray, and game rental from the convenience of your own home. You can stream videos just like Netflix or Hulu, or you can have them sent directly to your home in the mail. Other companies only offer one of these services, but Blockbuster has them all along with Dish Network television. Another distinction is that when you receive a video in the mail, you can exchange them at an actual store where you can browse through a selection and pick it up immediately. The option of being able to do what you want right away surpasses any other service offered. If you select to have the video or game mailed, it is free and it only takes one to two days. If you went with the Netflix option you would be paying more and have to have two different providers to get what you can from Blockbuster.
Since Blockbuster was purchased by Dish, the company has been on the rise and doing well. The new vision is working and the two companies are seeing profit. They are creating a path to take over both satellite television and the DVD rental service. As of late 2011 the two started showing the world of their new vision but ran into a mild speed bump. Consumers did not like the fact that to have the streaming video they have to switch satellite providers. This is all happening after Dish decided to drop popular channels like AMC and MTV....
References: About.com (n.d.). About.com, Retail Industry. Blockbuster Company Mission Statement - Media
Entertainment, Local Convenience. Retrieved from http://retailindustry.about.com/od/
Abraham, S. C. (2012). Strategic management for organizations. San Diego, CA: Bridgepoint
Education, Inc. ISBN: 9780984182381
Shedd, D. (April 19, 2011). 9 Keys To Driving Cultural Change. Retrieved from
Poggi, J. (23 September, 2010). Blockbuster 's Rise and Fall: The Long, Rewinding Road.
Retrieved from http://www.thestreet.com/story/10867574/6/the-rise-and-fall-of-blockbuster-the-long-rewinding-road.html
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