We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The problems associated with the Blockbuster company - Essay Example

Comments (0) Cite this document
Summary
The opening of the report consists of the Diagnosing Blockbuster’s Present Situation and Comparison of Blockbuster and Netflix. The SWOT analysis has been performed to find the internal and the external environmental situation of the company and present factors that are important for success. …
Download full paper
GRAB THE BEST PAPER
The problems associated with the Blockbuster company
Read TextPreview

Extract of sample
The problems associated with the Blockbuster company

Download file to see previous pages... The firm that is analyzed in the paper is Blockbuster. It was started in the year 1985 in Dallas as a single movie-renting store. With its aggressive growth strategy, the company managed to grow to nearly 7,265 stores in 24 nations around the world. Though the company remained as the world leader in movie rental during 1990s, problems emerged as new technologies developed in the area of entertainment distribution. New technologies that allowed online booking and online delivery of content developed as time passed, but the company management was adamant to give up its basic brick and mortar movie renting stores. As a result, while its competitors like Netflix effectively shifted to, and excelled in, methods like online booking, mail delivery and VOD, Blockbuster went on struggling with the already declining in-store movie renting systems and fell into debts. This resulted in a lot of issues in customer service that again made many existing customers leave the company. Firstly, the number of titles on offer declined dramatically, and secondly, popular items often went out-of-stock. Also, the delivery system was too slow as compared to that of its rivals. Thus, the company closed its year 2007 with a net loss of $ 85.1 million. This work looks into the various reasons behind the existing issues and tries to suggest ways for improvement in the future. A look into the performance of Blockbuster proves that once glamorous Blockbuster where everyone stopped to pick up a few movies has become a shadow of its past. There are a number of issues ranging from stiff competition, indifferent and doubtful management, lack of clear objectives, and finally, the continuously changing industry dynamics. Until the end of 1990s, Blockbuster was at the top of the rental business, and it never considered Netflix or any such other companies as consequential competitors. So the company paid little attention towards the emerging technologies and the changing customer preferences. Soon, the company found that its profits were going dramatically down. Thus, the stock price of the company fell from $29 to $2 per share. This was mainly the result of the emergence of other forms of entertainment delivery like rental by mail and video on demand. As these technologies emerged, a significant proportion of customers found them more convenient than in-store renting. It was at that juncture that the company made the most terrible mistake in its history. Instead of adapting itself to the emerging trend, the company decided to strengthen its in-store business. However, as the in-store business was destined to fail as technology allowed more convenient renting options, the effort proved futile. On the other hand, its rivals like Netflix who successfully adopted rental by mail and video on demand technologies found significant improvement in business and profit. As the company found itself in trouble, it started new strategies like kiosks, rental by mail and video on demand. However, each of the new strategies had its own defect too. For example, the rental by mail offered by Blockbuster was not as effective as that of Netflix. While Netflix managed to deliver the order in a single day, Blockbuster took one to three days. Also, while Netflix ensured successful delivery in more than 95% of the cases, many of the Blockbuster visitors found their favorite titles out-of-stock. Admittedly, the company has taken beneficial steps that will improve the position of the company in future. First of all, it has widened the product array in its brick and mortar stores by adding electronic appliances and video games. Secondly, it has started VOD though it has not been seriously explored. In fact, most of the problems faced by the company are associated with the lack of a specific objective. The management goes on changing its strategies in very short intervals, and hence, the customers get too puzzled to take a decision. Also, even the company representatives find it ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The problems associated with the Blockbuster company Essay”, n.d.)
Retrieved from https://studentshare.org/business/1395744-the-problems-associated-with-the-blockbuster-company
(The Problems Associated With the Blockbuster Company Essay)
https://studentshare.org/business/1395744-the-problems-associated-with-the-blockbuster-company.
“The Problems Associated With the Blockbuster Company Essay”, n.d. https://studentshare.org/business/1395744-the-problems-associated-with-the-blockbuster-company.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Problems Associated with Eyewitness Testimony
Eyewitness testimony is widely used in many judicial settings all over the world. Juries and judges place much attention on information presented by people claiming to have observed the occurrence of a particular event. The judges are exclusively assigned the task of determining the credibility of the information and determining how true the information presented is.
10 Pages(2500 words)Research Paper
Problems Associated With Racism. Emmett Till and Trayvon Martin
Emmett Till and Trayvon Martin In the radical years that racism was rampant, the execution of Emmett Till came as a result of him whistling at a white female. His brutal murder came during a very crucial age (Metress 56). He was just fourteen years old. The killing of African American boys and men was quite rampant at that period.
8 Pages(2000 words)Essay
Netflix versus Blockbuster
In 1999 Netflix came up with a program wherein customers could rent DVDs by mail for a flat monthly fee. The customers can choose movies via the website, choose one to eight discs at a time, and through a prepaid envelope, return such DVDs after they finished their viewing.
4 Pages(1000 words)Essay
Evaluate the main Problems Associated with Using Plastic Bags
According to the report plastic bags are used to litter the environment. This litter not only result in significant environmental and other costs but also leads to blocked drains and choked soil; contamination of ground and waterways; health hazard and death in human beings and negatively impact animal, marine and plant life.
5 Pages(1250 words)Essay
Questions: Netflix and Blockbuster
Technology advances regularly, thus, by engaging customers in the latest technology, it allows them to keep in pace with the advancing technology. In addition, despite the company being in the industry where profitability is the priority, it promotes ethics by ensuring that customers are well informed of the movies so that they may make their own choices.
4 Pages(1000 words)Research Paper
Blockbuster Organizational Failure
As a result, the Multinational Organizations (MNCs) were largely eligible to avail the opportunities persisting in the international market place in terms of marketing and distribution of goods and services and improving their product quality to a large extent.
8 Pages(2000 words)Research Paper
Challenges to the pharmaceutical industry's blockbuster-driven business model, and the effectiveness of GlaxoSmithKline's strate
According to this model, the pharmaceutical company needs to invest huge sums of money in their own research and development process. This model helps the pharmaceutical company to invest the same in several projects out of which only few would turn out to be successful.
8 Pages(2000 words)Essay
Expatriates and the problems associated with international diemensions
These factors include the cultural differences between the host country and the parent country, role-specific cultural qualities required and the personal outlook and the living standards of the expatriate executives. Apart from these factors there are other personal issues of expatriates while working on the overseas assignment as well as other issues after their repatriation to the home country with regard to their position in the organization.
11 Pages(2750 words)Essay
Feedback for solutions for brewing company problems
ter markets of the company, the company needs to concentrate on its local markets and further give attention to its important markets to sustain its good image. Other problems faced by Molson Coors are the price of raw materials, inability to maintain raw materials, reliance on
2 Pages(500 words)Essay
Blackberry (The Phone Company), Market Research Problems
Regulations concerning concealing respondent information are stringent now than it was in the last decades. The requirement posed on the researcher is to keep the privacy of a person even in a situation where they know them
4 Pages(1000 words)Essay
Let us find you another Essay on topic The problems associated with the Blockbuster company for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us