Blockbuster Corp. in a Mature Video-Store Industry: Options and Strategies



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Code : COM0063

Year : 2005

Industry : Entertainment

Region : US

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Blockbuster was one of the strongest entertainment brands in the US and a leading global provider of in-house videos, DVDs and video games on rent, with more than 9000 stores across North and South America, Europe, Asia and Australia.

Over the past few years, new technology such as Video On Demand (VOD) and the availability of movies for purchase at low prices on-line and at discount stores such as Wal-Mart and Best Buy had sapped some of the demand for rentals.

Blockbuster saw its business model coming under heavy pressure and found its business labelled as an industry in decline by experts.

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Pedagogical Objectives:

  • To enable the reader understand the DVD rental market in the US
  • To discuss the options and strategies for Blockbuster, as it still puts its future at stake on traditional DVD rentals in-stores and on-line, while rivals like Netflix has embraced the VOD technology to counter to fend off declining sales.


    Keywords : Blockbuster Corp; Product life cycle; Industry life cycle; Video store industry; Video rentals and video on demand; Mature industry; Competitive Strategies Case Study; Business model; Strong consumer-focus; Declining industry; Consumer and buyer behaviour; Innovative alternative technological threat; On-line stores for video sales and rentals; Life cycle extension; Viacom split-off; Growth options and strategies

    Contents :
    » Changed Dynamics of the Video Store Industry
    » Blockbuster Corp. - Background
    » Options and Strategies


    Case Introduction >>


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