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Blockbuster Report


Introduction

It was founded by David Cook in October 1985 in Dallas, Texas. This company has been dealing with matters pertaining to videogames. It has experienced ups and downs and at one time it filed for bankruptcy but it was revived sometimes later.

Corporate Level Strategy

In order to keep going, the company’s top management has to lay a strong foundation by means of capital injection and opening up new branches elsewhere. According to Gary (2003), this company bought Sound Warehouse and Music Plus retail chains for music in the United States of America in 1992.

He points out that this was a strategic move aimed at countering the spread of other businesses similar to it. He claims that the two chains bought had been spread in many parts of the country and therefore provided a good platform for Blockbuster to promote its business.

Later on, Grant (2008) points out that Blockbuster acquired other businesses that helped it remain as one of the best video games outlets. For instance, he claims that in 1994, Spelling Entertainment Group was bought and Xtra Vision from Ireland was bought two years later.

SWOT Analysis

Strengths

The company had many outlets which helped it reach so many people once a new product was launched in the market. According to Gary (2003), the company would use this advantage to make sure that more people get to know what they have to offer.

Weaknesses

According to Grant (2008), the company had accrued a lot of debts which became its major hurdles in progressing. He points out that this made many people shy away from their stores and hence they had to sell some of them in an attempt to offset such debts.

Opportunities

According to Gary (2003), Blockbuster has an opportunity to spread its operations in the world. This is due to many emerging markets beyond USA, Australia and Europe.

Threats

Companies such as Microsoft and Nintendo have become the major threats to the survival of Blockbuster. According to Gary (2003), these companies have adequate resources compared to Blockbuster. They have a better reputation than Blockbuster’s.

Conclusion

Blockbuster is an illustration of how poor management can result to the fall of a big organization. Therefore, having qualified personnel in a business is more important than having people who are just interested in what they get instead of what they offer to the company.

CEMEX

Introduction

It is the biggest cement company in Mexico and in Latin America and third largest in the world after Lafarge, of France and Holcim, of Switzerland. This company was founded in 1906 by Lorenzo H. Zambrano Gutierrez.

CEMEX Acquisition and restructuring

The company embarked on diversification strategy in 1980s. Prior to that, the company was a small scale manufacturer of cement. After 1980, Spulber (2007) argues that the company ventured into other businesses such as engineering, hotels, mining and petro chemicals.

In addition, he points out that this company has established itself in many countries around the world mainly through acquisition of an already existing cement factory. For instance, he argues that between 1997 and 1998, the company acquired a Filipino cement company called Rizal.

The other cement company acquired by CEMEX was Semen Gresik in Indonesia in September 1998. He observes that it further bought cement companies in Spain and in the United States of America.

In an attempt to show the world that it was ready for further expansion, CEMEX announced in 2000 that it had $1.2 billion to spend. According to Prahalad (2010), this target failed to materialize as planned because one of the targeted country (China) had enough cement companies.

SWOT Analysis

Strengths

According to Spulber (2007), cement demand is growing daily. Therefore, since this company has a good reputation in the industry, it has the potential to grow and expand. In addition, he states that establishment of cement companies in different parts of the world will help the company avoid paying exercise duties levied on imported goods.

Weaknesses

This company has invested billions of dollars and therefore, in case of an economic meltdown, it is likely to shut down some of its operating plants. In addition, Prahalad (2010) has said that its product are very expensive compared to others.

Opportunities

CEMEX has taken the advantage of its good reputation to open other business enterprises such as hotels. According to Gerardo (2008), the company has also invested heavily in the information communication technology to cut down on the cost of outsourcing for such services.

Threats

Today, the number of companies making cement is fast increasing with others offering the cement at cheap prices. In addition, Spulber (2007) indicates that this may lead to decreased sales in the future. The issue of staff poaching has affected CEMEX as other companies seek to employ people experienced in cement production.

Conclusion

CEMEX Company has demonstrated that focus and dedication is the key to success. The company started off as a small scale manufacture of cement but over time, it has managed to be one of the largest manufacturers of cement.

Reference List

Gary, S., 2003. Blockbusters: The Five Keys to Developing GREAT New Products. New York: HarperCollins.

Gerardo, R., 2008. Global strategic management. New York: M.E. Sharpe, Inc.

Grant, S., 2008. Blockbusters and trade wars: popular culture in a globalized world. Vancouver: Douglas & McIntyre Ltd.

Prahalad, C., 2010. The fortune at the bottom of the pyramid: eradicating poverty through profits. New Jersey: Pearson Education, Inc.

Spulber, D., 2007. Global competitive strategy. Cambridge: Cambridge University Press.

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IvyPanda. (2019, May 12). Blockbuster. Retrieved from https://ivypanda.com/essays/blockbuster-report/

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"Blockbuster." IvyPanda, 12 May 2019, ivypanda.com/essays/blockbuster-report/.

1. IvyPanda. "Blockbuster." May 12, 2019. https://ivypanda.com/essays/blockbuster-report/.


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IvyPanda. "Blockbuster." May 12, 2019. https://ivypanda.com/essays/blockbuster-report/.

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IvyPanda. 2019. "Blockbuster." May 12, 2019. https://ivypanda.com/essays/blockbuster-report/.

References

IvyPanda. (2019) 'Blockbuster'. 12 May.

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