Swot Analysis Of Blockbuster

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Strengths & weaknesses
Blockbuster
Blockbuster had developed a successful business model leveraging on its competitive advantage in distribution channels. Blockbuster was able to quickly and efficiently (at least initially) ship videos from one location to another taking advantage of the shifts in customer demand from one location to another. Blockbuster also has the significant advantage of its customer base. This allowed them to negotiate with the media giants to reduce the individual cost of the videos is procured, by now Blockbuster was the largest single purchaser of home video tapes. Under Huizinga Blockbuster was able to quickly identify and obtain the best locations in each geographic area into which they intended to expand. He would do this until the location was saturated. He would then move to another geographic location further stifling potential competition. Using his experience with waste management, Huizinga made a number of acquisitions. He made these acquisitions especially when entering new markets. Leveraging on earlier successes with its superstore’s physical appeal, block buster formed alliances with Domino’s Pizza, Mc Donald, PepsiCo etc to attract customers and build her brand recognition. Blockbuster effectively utilized her advantage in IT and constantly upgraded to ensure customers had the most convenient and stress free experience possible with the added advantage of creating greater efficiency in her distribution channels as the Point of sale systems were linked to an inventory system that allowed better management of her distribution operations.
On the other hand, Blockbuster had difficulty adapting to the changing environment “disruptive technologies “of the video entertainment industry in the ear...

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...ive advantages as an innovator with the help of excellent management. Let us hope she does not make mistakes that would lead to the same conclusion as Blockbuster.

References
0 Strategic Management An Integral Approach (10th edition)
1 https://pr.netflix.com/WebClient/loginPageSalesNetWorksAction.do?contentGroupId=10477
2 http://ir.netflix.com/annuals.cfm
3 http://www.fundinguniverse.com/company-histories/netflix-inc-history/
4 http://www.forbes.com/2010/05/18/blockbuster-netflix-coinstar-markets-bankruptcy-coinstar_slide_8.html
5 http://variety.com/2013/biz/news/epic-fail-how-blockbuster-could-have-owned-netflix-1200823443/
6 http://www.bloomberg.com/quote/NFLX:US/profile
7 http://www.theguardian.com/media/2013/dec/30/netflix-evil-genius-tv-revolution-ted-sarandos
8 http://www.forbes.com/sites/danwoods/2013/01/24/how-netflix-should-recover-from-amazon-addiction/

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