Block Buster Inc Essay

3102 words - 12 pages

Executive SummaryBlockbuster's mission is to help transform ordinary nights into BLOCKBUSTER nights by being a complete source for movies and games. Blockbuster over the last 20 years has grown from a single video rental store to more than 8,900 company operated and franchised stores throughout the United States, its territories and 25 other countries. Blockbuster is open 365 days a year from 10am to midnight and averaging 3 million customers on average per day. During these last 20 years Blockbuster has competed with other stores to be the number one leader in providing the most selection of movies and video games. Blockbuster is also committed to strengthening the communities it serves. The Company's outreach programs and partnerships are designed to deliver measurable, positive results, on both national and local levels (www.blockbuster.com).Blockbuster is continuing to lay groundwork in its participation in new opportunities in rental subscriptions, movie, and game trading and store-in-store concepts. In September 2000, the company began marketing DIRECTV System equipment in approximately 3,800 of its U.S. stores. Through the success of this alliance, BLOCKBUSTER co-branded DirecTV's pay-per-view movie service in June 2001, establishing the BLOCKBUSTER brand in the pay-per-view segment of the home entertainment industry for the first time (www.blockbuster.com). In 2004, blockbuster launched the Game Freedom Pass. This pass allows members to rent games without due dates as long as they subscribe to the pass. Also this year, Blockbuster opens its first GAME RUSH store-in-store concept and ends the year with 177 GAME RUSH locations in the U.S. and internationally. This year blockbuster plans to offer the Movie Freedom Pass which will allow users to rent movies without due dates as long as they have a subscription of the pass.Blockbuster has come very far over the past 20 years to market their video rental business by starting with a small idea and turning it into a large company that is recognized all over the world. Blockbuster is continuing their business world wide and continues to come up with new ideas every year to keep their business expanding and staying the number 1 leader in their business.MilestonesBlockbuster has achieved great successes and events of failure throughout their history. These can be attributed to their attention to the entertainment industry and technological environment.Their competitive advantage as a prospector enabled Blockbuster to initially capitalize on market share and continued growth. The number of bricks and mortar locations expanded rapidly throughout the 1980's and 90's. This allowed Blockbuster to become a "first mover" in many market areas to provide an alternative to high movie theater ticket prices.The use of early timing of distribution placed Blockbuster at a competitive advantage. Movie studios rely on distribution channels after theater release to boost movie revenues. Studios use home movie rental...

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