From the establishment of Blockbuster Entertainment in 1985 it has made business of nearly $5.5 billion, but in recent times it is suffering from break neck competition from new companies and also the technologies that have made movie and video downloading from the internet a click away. Though many new technologies are evolved for fighting anti piracy and such things, it one the other hand made the services slow and put financial burden on companies. Jim Keys, the CEO of the company since 2007 admits the situation. The company will take steps to bring back people to watching movies in rental videos.
In the beginning of the 90s, Blockbuster Entertainment was the leading video rental store of the country with more than 400 stores and also an efficient management. But after a short time the initial success began to melt down as the experts predicted that the success of the company will soon be challenged by the drastic development of technology in the field, and it happened. Though it was getting multinational, and tying with various entertainment companies like Viacom, but in the year 1996, the stock pricing for Blockbuster had fallen to the half of its peak time stock value. The problems went on and in 1998; the bankability of the concern was in question. It was in the year that Blockbuster made an agreement with America Online and developed blockbuster.com, a new distribution channel, with embracing the new marketing concept and technologies. But problems went on for the company and in 2005 they lost more than $ 500 million in late revenue fees only.
Competitors
Now the competitors in the market for Blockbuster Entertainment are:
- Family Video.
- Hastings Entertainment, Inc.
- Movie Gallery, Inc.
- Netflix, Inc.
- Redbox Automated Retail, LLC
The products of Blockbuster Entertainment
One of the strengths of Blockbuster Entertainment is their collection and it consists of the very best of movies from the leading production companies like Fox Entertainment Group, Paramount Motion Pictures, Sony Pictures Entertainment, NBC Universal, Buena Vista Motion pictures, Lions Gate International and the Weinstein Company and all of the production companies have great movies under them from not only Hollywood but all over the World. Blockbuster Entertainment tries to cater to all the tastes of people and it strives to do that too (Vorhies 1310-1334).
Strategies used
Some of the recent strategies of the company are keepings prices low and growing in volume, diversifications and modern technologies, along with downloadable movie contents. Also they made partnerships with companies like Coca Cola, Food.com and other companies to make the movie watching experience more relaxing. Also they have grown internationally and in recent times they have expanded their market in Hong Kong, Australia, Costa Rica and other countries too. With a very good supply chain and some really exciting corporate tactics it promises to break new barriers in business.
The main strength of the company is its collection and also it is the pioneer in the industry. They also keep subsequent products like soft drinks and other toys in their outlets, which further enhance the business. And with their newly launched website they also give the options to download movies. The company is in a cross roads and they are really trying to break away from the losses of the past. With new business strategies and a very good management team, they can surely look forward to a very successful future ahead (Shuliang 231-254).
Works Cited
- Shuliang, Li. ‘A multi-agent-based hybrid framework for international marketing planning under uncertainty’. Intelligent Systems in Accounting, Finance & Management 16.3, (2009): 231-254.
- Vorhies, Douglas W. ‘Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and performance’. Strategic Management Journal 30.12, (2009): 1310-1334.