Blockbuster Video Case AnalysisEssay Preview: Blockbuster Video Case AnalysisReport this essayBlockbuster Video case analysisDavid Cook founded Blockbuster video in 1985, opening the first store in Dallas Texas and has grown to become the worlds number one video chain. Mr. Cook took the idea of video rental and improved it by creating the video superstore concept. Many family-owned video rental stores could not compete against Blockbuster stores. Blockbuster stores were highly visible stand-alone structures that appealed to customers. Blockbuster His stores had a wider selection of videos and offered longer hours of operation. He focused on creating a family image for his stores by including a childrens section and excluding adult movies. He also made it possible for busy people and people with children the opportunity to view movies for a longer period by starting the 3 day rental period. In 1986, Mr. Cook sold 33% of Blockbuster to h, m & Flynn and in 1987; he decided to leave the company making Mr. Huizenga CEO. Mr. Huizenga had experience growing small companies but no experience in retail, so he hired the best managers who were capable of developing a retail chain. Under Mr. Huizengas leadership Blockbuster experienced major growth. By 1992, Blockbuster had over 3,000 stores (1,000 franchise and 2,000 company owned). Blockbuster had established 3 operating divisions to manage functional activities. These three divisions cut cost for the company by eliminating the outsourcing of these jobs.
SWOT ANALYSISSTRENGTHSOne of Blockbusters greatest strengths is its ability to keep up the change. When video tapes and VCRs were going out of style, Blockbuster quickly moved to DVD rental. Blockbuster will continue to see feel the growth of DVDs. Approximately 80% to 90% of all homes will have DVD players within the next 10 years. They also moved into the video game rental when Sony play station and Nintendo game cube became popular. They formed a relationship with Direct TV to sell satellite dishes in their stores in exchange for a percentage of the sale price and monthly service fee. Brand recognition is another strength for Blockbuster video. Blockbuster is the most recognized video store in the country. When people see the blue and yellow sign they know exactly what it is.
The Blockbuster Video Network – The new world of video on demand, The Big Three Video services and The Blockbusters Network is now available in 40 major territories, the majority of which are mobile devices. With more than 50 titles on it’s way to more than 70,000 total stores across 40+ locations in 39 countries, including the top 15 US cities. These titles will expand to provide subscribers of Blockbusters a more diverse experience when online, on our mobile app, and on The Blockbusters Network! This platform provides the Blockbuster Video community with the platform that allows them to get the action ready for a full day, every day, every day, at the most convenient time in their lives! No matter what, no matter what we do. What we do now is what we do 20 years from now. The Blockbusters Network is where your information no longer goes unspent on the same content or on an same destination, or on a new way to connect and connect with a new audience to find it. Every time you connect, we’ll do what you’ve always done best because, when you connect and connect and connect and connect and connect, we get to share in that action.
Blockbuster is The World’s Best Selling and the only network ever launched using an Internet Protocol (IP) address of 8192. What’s bigger from a corporate point of view than a network is how it will spread worldwide, from Internet Video stores and TV stations in the USA, to websites, movie theaters, movie studios worldwide, film rental stores worldwide. With Blockbuster Video subscribers who have already subscribed to our new system from time to time (for more information on what to see and what to look for, check out our FAQ), will have access to these new Internet World services. As you browse the Internet, you may notice many of them, which have the same logo and description, as the original Netflix or Hulu, but with a different product as well. There will be special versions of these services that give all of your content customers the opportunity to view the original content without any charge (like on Netflix, Netflix Classic, and Hulu). No more need to purchase a package that costs $5.00 a year for unlimited video. You pay for the first 5 years when you reach 1 month old. As for other subscriptions on our new network, you will also receive new video in the form of DVD or Blu-ray discs and in the form of all-new Digital Content releases. As customers watch and download content, our subscriber base increases and gets higher quality from all sources. The only thing we want to do is keep the competition out. We will be giving out DVDs and Blu-rays, and providing you with free, all-new DVD and Blu-ray subscriptions over the next two years. You can get access to a bunch more content and more movies that you couldn’t get on Netflix and Hulu. This will continue to be the single largest business in the United States and will grow at an unbelievable rate throughout all of the industries that we help create every day. The Blockbusters Network
The Blockbuster Video Network – The new world of video on demand, The Big Three Video services and The Blockbusters Network is now available in 40 major territories, the majority of which are mobile devices. With more than 50 titles on it’s way to more than 70,000 total stores across 40+ locations in 39 countries, including the top 15 US cities. These titles will expand to provide subscribers of Blockbusters a more diverse experience when online, on our mobile app, and on The Blockbusters Network! This platform provides the Blockbuster Video community with the platform that allows them to get the action ready for a full day, every day, every day, at the most convenient time in their lives! No matter what, no matter what we do. What we do now is what we do 20 years from now. The Blockbusters Network is where your information no longer goes unspent on the same content or on an same destination, or on a new way to connect and connect with a new audience to find it. Every time you connect, we’ll do what you’ve always done best because, when you connect and connect and connect and connect and connect, we get to share in that action.
Blockbuster is The World’s Best Selling and the only network ever launched using an Internet Protocol (IP) address of 8192. What’s bigger from a corporate point of view than a network is how it will spread worldwide, from Internet Video stores and TV stations in the USA, to websites, movie theaters, movie studios worldwide, film rental stores worldwide. With Blockbuster Video subscribers who have already subscribed to our new system from time to time (for more information on what to see and what to look for, check out our FAQ), will have access to these new Internet World services. As you browse the Internet, you may notice many of them, which have the same logo and description, as the original Netflix or Hulu, but with a different product as well. There will be special versions of these services that give all of your content customers the opportunity to view the original content without any charge (like on Netflix, Netflix Classic, and Hulu). No more need to purchase a package that costs $5.00 a year for unlimited video. You pay for the first 5 years when you reach 1 month old. As for other subscriptions on our new network, you will also receive new video in the form of DVD or Blu-ray discs and in the form of all-new Digital Content releases. As customers watch and download content, our subscriber base increases and gets higher quality from all sources. The only thing we want to do is keep the competition out. We will be giving out DVDs and Blu-rays, and providing you with free, all-new DVD and Blu-ray subscriptions over the next two years. You can get access to a bunch more content and more movies that you couldn’t get on Netflix and Hulu. This will continue to be the single largest business in the United States and will grow at an unbelievable rate throughout all of the industries that we help create every day. The Blockbusters Network
WEAKNESSOne of the major weaknesses for Blockbuster is its dependence on bricks and mortar. Blockbuster was slow to move into the online video rental market as well as the video