Blockbuster Case Analysis
Running head: Blockbuster
Blockbuster Case Analysis
Jane Doe
BUSA, 3280 Strategic Management December 11, 2010
Blockbuster Case Analysis Blockbuster is a company that was started in Dallas, Texas in 1982. It was incorporated in 1985 and reported revenues of $5.5 billion in 2006. It is known as a leader with in-home movie and game rentals. In 2006 it launched a new way to rent movies by introducing a program that gives customers the option to exchange the movies through the mail or return them to the store and exchange them for another movie. By doing this they are the only company to offer the option of a store rental or on-line/mail rental. According to Blockbuster web site, “Blockbuster has been the preferred source for media entertainment for the last 25 years, and we fully intend to keep it that way” (Blockbuster, 2010) James Keyes was appointed CEO of Blockbuster in 2007 and has made some significant changes in the leadership team. He has the customers concerns as his top priority, along with the vision of success for Blockbuster.
Since the inception of Blockbuster in 1982, there have been some serious technological advancements which have allowed other companies to arise and offer different ways of renting movies. The major growth of the internet brought about the era of being able to rent movies over the internet and then receive them in the mail. You never had to leave your house. When the movies became available they were sent directly to you. This was especially appealing to the younger generation which is very technologically savvy and they found it much easier to rent a movie on-line rather than go to a brick and mortar store, walk around the store, find a movie they wanted, hope it was in stock, stand in line to rent it and then come back home. In 2006, Blockbuster invested in their online rental service called Blockbuster Total Access. This allowed on-line customers the option to exchange their DVD’s through the
Blockbuster Case Analysis
Jane Doe
BUSA, 3280 Strategic Management December 11, 2010
Blockbuster Case Analysis Blockbuster is a company that was started in Dallas, Texas in 1982. It was incorporated in 1985 and reported revenues of $5.5 billion in 2006. It is known as a leader with in-home movie and game rentals. In 2006 it launched a new way to rent movies by introducing a program that gives customers the option to exchange the movies through the mail or return them to the store and exchange them for another movie. By doing this they are the only company to offer the option of a store rental or on-line/mail rental. According to Blockbuster web site, “Blockbuster has been the preferred source for media entertainment for the last 25 years, and we fully intend to keep it that way” (Blockbuster, 2010) James Keyes was appointed CEO of Blockbuster in 2007 and has made some significant changes in the leadership team. He has the customers concerns as his top priority, along with the vision of success for Blockbuster.
Since the inception of Blockbuster in 1982, there have been some serious technological advancements which have allowed other companies to arise and offer different ways of renting movies. The major growth of the internet brought about the era of being able to rent movies over the internet and then receive them in the mail. You never had to leave your house. When the movies became available they were sent directly to you. This was especially appealing to the younger generation which is very technologically savvy and they found it much easier to rent a movie on-line rather than go to a brick and mortar store, walk around the store, find a movie they wanted, hope it was in stock, stand in line to rent it and then come back home. In 2006, Blockbuster invested in their online rental service called Blockbuster Total Access. This allowed on-line customers the option to exchange their DVD’s through the
References: Blockbuster Homepage (2010, December,1). Retrieved December 9, 2010 from http//www.blockbuster.com/ Blockbuster Inc. (March 23, 2010). Blockbuster and Warner Bros. Announce New Agreement [Press release]. Retrieved from http://prnewswire.com/ Ireland, R.D., Hoskisson, R.E., Hitt, M.A. (2009) . Understanding business strategy (2nd ed.) . Mason, OH: South-Western/Cengage