Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
Blockbuster; Product life cycle; Industry life cycle; Video store industry; Video rentals and video on demand; Mature industry; 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
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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 9,000 stores across the North and South Americas, 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 witnessed its business model come under heavy pressure and found its business labelled as an industry in decline by experts. The case study offers scope to discuss the options and strategies for Blockbuster, as it was still putting its future at stake on traditional DVD rentals in-stores and on-line, while rivals like Netflix had embraced the VoD technology to counter the threats of the declining DVD-rental market.
Location:
Industry:
Size:
USD6.5 billion (2004 sales)
Other setting(s):
2001-2005
About
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 9,000 stores across the North and South Americas, 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 witnessed its business model come under heavy pressure and found its business labelled as an industry in decline by experts. The case study offers scope to discuss the options and strategies for Blockbuster, as it was still putting its future at stake on traditional DVD rentals in-stores and on-line, while rivals like Netflix had embraced the VoD technology to counter the threats of the declining DVD-rental market.
Settings
Location:
Industry:
Size:
USD6.5 billion (2004 sales)
Other setting(s):
2001-2005