Has e-marketing and the use of the internet hurt Blockbuster's dominance in the movie rental business and if it has what will they have to change in their business plan to regain their market shares? This case has studied the influence of new technologies for delivering movie rentals along with downloading movies directly to your television at home without a customer even getting off their couch. It also examines the impact DVD recorders are going to have on Blockbusters main products like DVD players and VCR's. The case talks about the threats these new innovations are going to have on Blockbusters business potential. Along with what Blockbuster has done to compete with their new competitors like Wal-Mart and Netflix. With the internet changing the way most profitable companies do business Blockbuster has to adapt and follow the new trends our generation. While studying this case, our group analyzed what Blockbuster's strengths and weakness are, combined with what opportunities they have to excel in the new way consumers watch movies and we established the threats that exist with new technology and competitors. Last our group has thought of some new idea's that could help them thrive in the future.
The problem that this case states is, will Blockbuster make the right business plan choices to allow them to compete with the innovation of products and technology of distributing movie rentals. Also is Blockbuster going to be able to adapt and succeed in this new era of renting movies?
The SWOT (Strengths, Weakness, Opportunities, and Threat) analysis for Blockbuster is both positive and negative. The major strength that Blockbuster Inc. has is a brand image over the competition. When new movie releases come out on Video or DVD, Blockbuster has 48 day leeway period to prevent other competitors such as Pay per View & TiVo from renting them. It helps studio's earn more money when customers rent movies from Blockbusters then with On Demand programs. There are new technological products out there in the market, but are not as reliable as blockbuster. In every store they offer the option of customer service to guide their customers in picking the best movie rental. Plus blockbusters suggest a customer rent a movie for more then one night. All US households own at least one or two DVD players and can choose to go the store for a movie rental. Blockbusters provide customers with a deal that can give them two whole months of free movie rentals for those customers who cancel their services with Netflix or from Wal-Mart.
However, all of these strengths that Blockbuster has to offer there are always weakness lingering around. The most popular one is not responding quickly enough to the technological advantages of direct digital distributions, and waited until Netflix come into the market. Blockbuster co-brand their movie sells with the Direct T.V in which they lose some of there market shares. Another thing is that Blockbuster stores are...