Blockbuster - Final Presentation Theme and Format

8/14/2019 Blockbuster - Final Presentation Theme and Format

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Hina SamadNaima Khan

Zainab Ali AsgharZobia Makna


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INTRODUCTION

American-based provider of homemovie and video game rental services,originally through video rental shops

(both owned and franchised), lateradding DVD-by-mail, streaming, videoon demand and Cinema Theater.


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INTRODUCTION

At its peak in 2004, Blockbuster had up to60,000 employees and more than 9,000stores.

DAVID COOK - FOUNDER 1985-1987 WAYNE HUIZENGA - CEO 1987-1994

STEVEN BERRARD - CEO 1994-1996

BILL FIELDS - CEO 1996-1997

JOHN ANTIOCO: CEO 1997-2007

JIM KEYES - CEO 2007 Onwards


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Slogans

"Wow! What a Difference!" (1990s) "Make It a Blockbuster Night" (1990s)

"Bringing Entertainment Home" (1990s)

"Go Home Happy" (1990s)

"Bring The Good Times Home" (1990s)

"The New Blockbuster" (2005)

"America's No. 1 Home Entertainment store"(current)

"There's more inside" (current)

"The Movie Store at Your Door" (current,Blockbuster Online)


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Mission Statement

"Our corporate mission is to provide ourcustomers with the most convenientaccess to media entertainment,including movies and game

entertainment delivered throughmultiple distribution channels such asour stores, by-mail, vending andkiosks, online and at home. We

believe Blockbuster offers customers avalue-priced entertainmentexperience, combining the broaddepth of a specialty retailer with local

neighborhood convenience."


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Industry:

Home video and gaming industryLarge number of buyers in relation toindustry rivalsLow or non-existent switching costs

Industry products easily substituted


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Principles of scientific managementinvolves the one best way ofdoing a job.

CASE STUDY


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Arrangement and alignment.

Availability of Online Website

Packages.

Stop Traditional practice ofstocking.

Yearly Membership.

Trained employees.

Principles of ScientificManagement


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Flexible Time.

Empowerment.

Motivation.

Leadership.

Principles of OB


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BLOCKBUSTER CULTURE

EarlyAdvocates

of OB

RobertOwens

Late 1700s

HugoMunsterberg

Early 1900s

Mary ParkerEarly

1900s

ChesterBernard

Early 930s


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BLOCKBUSTER - SYSTEM

Input Point ofSale

TransformationProcess

Collecting Data

Output Titles ofMovies, Games

and otherfacilities (online,

mails etc)

Organization

Feedback

Environment

Environment


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Creating Culture Technology initiatives to strengthen their

relationship with customers Enabling their customers to transact

seamlessly with any Blockbuster location

They also created an inventory transferengine to re-allocate product betweenstores to meet customer demand

Multi-channel customers had their on-

line queues updated with their storerental activity.

DVDs and powered the MOVIECLIQUETMapplication on a leading socialnetworking website


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Emphasis on Diversity

Valuing differences in age Ethnicity

Gender

Sexual orientation

Education and work/lifestyles and alsopeople with disabilities.


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Organizational success in 21stcentury as diversity enables anorganization to understand the

environment better, be sensitive tocultural differences and be morecreative by capitalizing on strengthsof its diverse workforce


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MR. JIM KEYES

JIM KEYES - CEO 2007 - 2013 2007: Sold all Australian stores and Brazilian

stores

2008: Blockbuster attempts to buyout Circut City,but withdrew offer, and launches Blockbusteron Demand

2009: Blockbuster partners with NCR to install

DVD kiosks to compete with Redbox.


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2010: Company closes hundreds of stores in order

to cut costs and attempt to pay back its nearly $1billion in debt.

2011/12: Blockbuster receives a winning bid from

Dish Network for $320 million, and closes allstores in Canada 1985

MR. JIM KEYES


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Past: Penetration strategy

DifferentiationConvenient locationWide selection of titlesCustomer database

Increased efficiency


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SWOT ANALYSIS

STRENGTHS:

1) Brand Familiarity2) Offers movie & video game rentals

3) Located globally

4) No late fees

5) Can return delivered movies in storeas well as via mail

6)More variety7)Partnerships with Movie Studios

WEAKNESSES:

1) Weak, damaged brand2) Unsuccessful3) High operating expenses4)Poor investor confidence5)More expensive than red box.

OPPORTUNITY:

1) Store experience2)Online Distribution3)Lower prices4)Partnership for online downloads5)Blockbuster phone App.6)Video game sales

THREATS:

1)On demand movies2)Netflix3)Internet4)Movie theaters(3D)5)Piracy


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Current Strategy Penetration with cost-leadership

28 day rule

Advertising through our website

Social networking

Telephone In-store promotions

Mail and E-mail

Application for smart phones and tablet Personal selling

Word of mouth


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PLAY VIDEO


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Customer Satisfaction

1) User Friendly technique

2) Offers movie & video game rentals

3) Located globally

4) No late fees charged

5) Can return delivered movies in storeas well as via mail

6) More variety


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COMPETITION AND WAR

Netflix Vs BlockbusterMonthly pricing:

Netflix: Blockbuster:

$7.99(one DVD)$9.99(one DVD or Blu-ray)$43.99for eight DVDs

($52.99

for Blu-ray

$9.99(one DVD, Blu-ray, orvideo game disc)$14.99(two discs)


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Availability

Netflix Blockbuster

More than 100,000movies TV shows

on DVD and Blu-ray

More than 100,000movies and TV

shows DVD andBlu-ray 3,000 videogames.


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Key Differences

Blockbuster: Unlimited onlinestreaming mailed disc titlesavailable 28 days before Netflix

Limitations

Netflix: no stores no games

available

Blockbuster: in store exchange


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CONCLUSION

Tactics to Enhance Functioning OfEmployees

Tactics to capture customer flow

Tactics to Enhance Business


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Recommendations

Decrease debts and overhead costsCost leadership strategy

Expand into emerging markets

Improve marketing strategyGames: an excellent source of revenue

Process innovation: Focus on keeping up withchanging technology

Competing through licensing Strategy


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QUESTIONS

Documents

Blockbuster - Final Presentation Theme and Format