Blockbuster Is Fighting for Survival
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- Date Submitted: 07/04/2014 02:53 PM
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Principals of Management: Module 2
Blockbuster is fighting for Survival
A SWOT analysis is a structured planning method used to evaluate a firm’s strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. Blockbuster was the world’s largest video rental chain. They provided rental movies and game entertainment that saw record high numbers when they opened their doors in 1985. However over the past few years they have seen record losses. Changes in the entertainment industry and new technology led to increased competition currently making Blockbuster in great significant trouble. To survive, Blockbuster needs a new strategy to the current market conditions. It needs a good SWOT analysis, which then can be followed through.
Blockbuster's effort to establish itself in the fast-growing Internet video-on-demand business will get a boost today when the No. 1 video rental chain unveils a deal to transmit movies and TV shows to TiVo digital video recorders (Lieberman). Blockbuster has also signed an agreement with major movie studios for access to popular movies for in-store and online rentals. Later, they will be offering Blockbuster on Demand to Internet connected Blu-ray players, television, mobile phones and portable entertainment products. Blockbuster has also bundled with Dish Network to provide a Blockbuster Movie Pass. This however, is not a direct Netflix competitor because it is a $10 monthly add on fee for existing Dish Network subscribers. These deals are an effort to try to re-establish themselves as the world’s largest video rental chain. I believe Blockbuster was too slow to respond to the changes the consumer wanted. Everyone in home entertainment is jockeying for position. It is just too easy and inexpensive for a consumer to order a movie from there on demand Cable Company. I do not believe Blockbuster will be successful with their agreements with TiVo and the major movie studios. They are already at a...
Blockbuster is fighting for Survival
A SWOT analysis is a structured planning method used to evaluate a firm’s strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. Blockbuster was the world’s largest video rental chain. They provided rental movies and game entertainment that saw record high numbers when they opened their doors in 1985. However over the past few years they have seen record losses. Changes in the entertainment industry and new technology led to increased competition currently making Blockbuster in great significant trouble. To survive, Blockbuster needs a new strategy to the current market conditions. It needs a good SWOT analysis, which then can be followed through.
Blockbuster's effort to establish itself in the fast-growing Internet video-on-demand business will get a boost today when the No. 1 video rental chain unveils a deal to transmit movies and TV shows to TiVo digital video recorders (Lieberman). Blockbuster has also signed an agreement with major movie studios for access to popular movies for in-store and online rentals. Later, they will be offering Blockbuster on Demand to Internet connected Blu-ray players, television, mobile phones and portable entertainment products. Blockbuster has also bundled with Dish Network to provide a Blockbuster Movie Pass. This however, is not a direct Netflix competitor because it is a $10 monthly add on fee for existing Dish Network subscribers. These deals are an effort to try to re-establish themselves as the world’s largest video rental chain. I believe Blockbuster was too slow to respond to the changes the consumer wanted. Everyone in home entertainment is jockeying for position. It is just too easy and inexpensive for a consumer to order a movie from there on demand Cable Company. I do not believe Blockbuster will be successful with their agreements with TiVo and the major movie studios. They are already at a...