Blockbuster Swot Analysis

In: Business and Management

Submitted By tabari
Words 1576
Pages 7
Tabari Holloman
Business Policy
10-23-13

Blockbuster Video Swot Analysis

Blockbuster Inc. is an American-based chain of VHS, DVD, Blu-ray, and video game rental stores currently under Chapter 11 bankruptcy. As of January 3, 2010, there were over 5000 Blockbuster stores in the U.S. and 17 countries worldwide. It is headquartered in the Renaissance Tower in Downtown Dallas, Texas.[1] Because of competition from other video rental companies like Netflix, Blockbuster has seen significant revenue losses. The company filed for bankruptcy on September 23, 2010.

Strengths
* Lead market share of online rentals
* Low fixed costs
* Worlds largest selection of DVDs
* Fastest delivery time of any online DVD rental company with over 35 DCs
* Service: over 90% of DVD's are received by customers within one day of ordering
* Strong website (shopability, navigation, reviews)

Weaknesses
* Can't control most important expense: shipping expenses
* Older demographic has a hard time understanding their concept
* Watch instantly feature only allows a small selection of DVD's
* Distribution time
* presence in only DVD segment

Opportunities
* Pricing segmentation (i.e., different plans)
* Online distribution
* Other types of rentals (Video games, educational, institutional, etc)
* Internationalization
* Expanding to Video Game rental
Threats
Rising stamp costs, Other larger retailers launching into similar space (i.e., Wal-Mart, Online digital distribution iTunes, Napster Redbox, Blockbuster allowing the rental of games in addition to movies Like most brick-and-mortar rental businesses, Netflix often has trouble providing enough copies of new, popular movies

Strategy Used
Blockbuster video began to sell its stock of dvds and video games before they shut down in order to maximize their profits before going out of business.

The Issues and…...

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