Swot Analysis Of Blockbuster

1599 Words4 Pages
bulb-icon

Recommended: Challenges in strategy implementation

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...

... middle of paper ...

...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/

Show More
Related

  • CenturyLink: A SWOT Analysis of an Emerging Communications Giant

    740 Words  | 2 Pages

    CenturyLink is one of the larger communications companies within the United States and has even expanded abroad to other countries. When analyzing the SWOT analysis for CenturyLink, I was able to identify several strengths that set them apart from their competitors. As mentioned, they are distributing services in over 20 states currently and continue to broaden services to reach more clientele. They pride themselves on exceling in data communications and network systems databases which has allowed them to become one of the desired communication companies.

    Read More

  • Dollarama Financial Statement

    830 Words  | 2 Pages

    Introduction: Dollarama is a public retail company founded in the year 1992 by Larry Rossy. This company becomes well known all around Canada dealing in different consumer products. Now, Dollarama has its store in every province of Canada. It has multiple stores in Ontario only.

    Read More

  • Analysis of Blockbuster Video

    991 Words  | 2 Pages

    According to Jim Collins, the undisciplined pursuit of more is reckless behavior, which sets the company at great risk even though their stock continues to climb. In my opinion, this was evident with Blockbuster as they decided to expand into everything entertainment and away from their ...

    Read More

  • Costco's Business Model: Strengths, Weaknesses, Opportunities, and Threats

    830 Words  | 2 Pages

    Strengths Quality name brand products at low prices. This is the cornerstone of the Costco business model and one of the biggest drivers of its success. Costco has built an identity based on this strength. Fast inventory turnover and High sales volume This is a key strength that directly relates back to the first strength. Fast turnover means they are collecting on their purchases often before payment is due, cutting borrowing costs and further reducing prices.

    Read More

  • Harry Wayne Huizenga

    1443 Words  | 3 Pages

    After much success with waste management, including buying 90 competing trash collection companies and annual revenue at excess of $1 billion a year, Huizenga decided to leave WM and went on to buying hotels, warehouses, pest control companies, office building, etc. In 1987, a former associate a WM had persuaded Huizenga to look into blockbuster. Huizenga then bought 43% of the company at $18 million. By 1991 blockbuster had expanded world-wide with more than 2,000 stores. In 1994 Huizenga sold his shares of blockbuster for $8.4 billion to Viacom Inc. (owners of MTV).

    Read More

  • What Is Swot Analysis Of Walmart

    1245 Words  | 3 Pages

    (a). Within the topic of marketing plans, define and discuss SWOT analysis and their application/significance in building marketing plans.

    Read More

  • Swot Analysis Of Wells Fargo

    1230 Words  | 3 Pages

    Threats to the organization involve the various competitors in the financial services industry as well as key partners in the supply chain. When discussing competitors, an obvious threat will be loss of market share to other institutions. With the negative media, many customers have switched their banking relationships to another financial services provider. Because the products in the financial services industry are generally the same from firm to firm, it is imperative that the service provided sets the organization apart. The threat of a negative image of Wells Fargo & Co. could tarnish the way the public views its service provided. Because of this, it is necessary to switch from a results driven model to that of simply serving the

    Read More

  • The Rise and Fall of Blockbuster

    1623 Words  | 4 Pages

    [2] Poggi, Jeanine. "Blockbuster's Rise and Fall: The Long, Rewinding Road." The Street. N.p., 23 Sept. 2010. Web. 11 Dec. 2013.

    Read More

  • Netflix SWOT Analysis

    1425 Words  | 3 Pages

    S. W. O. T. Analysis Strengths:.. ? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month, which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead the market share of online DVD rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee.

    Read More

  • Blockbuster Case Analysis

    1489 Words  | 3 Pages

    The twenty year journey of Blockbuster has not been without bumps, valleys, road blocks, and detours. Blockbuster has come under legal fire from Netflix, a major online competitor, the Free Trade Commission for attempting a host...

    Read More

  • Netflix

    1034 Words  | 3 Pages

    ...a remarkable opportunity to grow in the industry and lead as an innovative provider, Netflix has much opportunity to satisfy its customers and maintain their attention with their revolutionary business growth (Martala, 2009). Their success goes beyond their product. As stated, it is a combination of their culture of high performance drivers and fosters the “freedom and responsibility” mindset (Elliott, 2010). Because of their innovation and gradual entry into the market, Netflix has the competitive advantage to add layers of products for growth for years to come. Currently, Netflix has the competitive advantage to increase price and retain their current customer base. Even more beneficial, is the opportunity to attract additional subscribers with their new features. To end this, combining their products, price, culture, and strategic plan makes Netflix innovative.

    Read More

  • The History of Netflix

    2022 Words  | 5 Pages

    Although Hastings vowed to be divergent from other video retailers, his goal was to use an identical pricing strategy; however, one that would “appeal to customers [. . .] who used online shopping as an alternative to traveling to retail outlets” due to ease of access and more preferences (Shih, Kaufman, & Spinola, 2009, p. 3). Furthermore, Netflix launched its business at a time DVDs had barely hit the marketplace as the firm anticipated the new technology to be a promising venture. Nonetheless, within a year DVD players became so vast...

    Read More

  • Netflix´s Competitive Advantage and Strategies

    1715 Words  | 4 Pages

    ...mpetitive and it is difficult in order to make greatly effort for the company to keep up its competitive advantages. In addition, the company now already has global brand name and customer loyalty as well as reasonably healthy financial situation after recovering some its mistakes. Netflix could build up further its strategic plans through several viably emerging trends in the marketplace such as network neutrality, video gaming along with transmedia properties and second screen engagement. As mentioned, video games and second screen engagement could be good choices and opportunities for the company to be ongoing health in long-term. However, it should also be noted that Netflix must be committed to take action in the greatest way appropriate to international expansion approach, meeting the challenges forward and finally come out on the top of the ladder once more.

    Read More

  • SWOT Analysis

    1675 Words  | 4 Pages

    The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.

    Read More

  • SWOT Analysis

    576 Words  | 2 Pages

    test whatever it's a bad effect or not. So when it used on humans, we

    Read More

More about Swot Analysis Of Blockbuster

Open Document