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Blockbuster - College Essays

Blockbuster

Who are Blockbuster's main competitors? What advantages does Blockbuster have, and what advantages do competitors hold? Create a SWOT analysis to understand Blockbuster's strengths and weaknesses. Does Blockbuster have a sustainable competitive advantage in the mail rental and video-on-demand industries? What challenges does the company face going forward? What is Blockbuster's business-level strategy? How has Blockbuster attempted to overcome obstacles posed by being a late player in a rapidly changing marketplace? Do you recommend any changes and/or foresee any challenges?

The five underlying forces for an industry's structural attractiveness are the barriers to entry for new ...

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industry. Essentially, this has created many barriers for traditional mom-and-pop video stores to maintain consistent revenues or expand and open new stores, ultimately driving many out of business. In the early '90s, there were some 70,000 stores nationwide that rented movies, compared to 18,000 today (Graham). The appearance of a new brick-and-mortar competitor for Blockbuster is an unlikely event.

Online however, Blockbuster faces different circumstances. In general, the internet will reduce barriers to entry for new companies by eliminating the need for an established sales force and existing channels. In addition, the internet makes applications difficult to keep proprietary. The internet has allowed Netflix to enter and become the leader in the online video rental business. Netflix has lower proportional upfront capital requirements than a chain of traditional movie rental stores. In addition, its distribution centers can be built in low-cost areas, and ...

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market for movie rentals and also created new competitors. Netflix, Wal-Mart, and Amazon.com are all competing with Blockbuster for online customers. With this new competition, Blockbuster was also forced to try and keep its brick and mortar side of the business as strong as possible. This caused a fight between Blockbuster and Hollywood Video for the acquisition of Movie Gallery, a fight Blockbuster ultimately lost.

These rivalries have also migrated competition to price. Netflix had been advertising its $17.99 price for its most popular three-movies-out, unlimited rental plan. Once Blockbuster entered the online segment, it cut its price to $14.99 for its ...

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PAPER DETAILS
Added: 12/15/2012 05:22:20 PM
Submitted By: amardc
Category: Business
Type: Premium Paper
Words: 3311
Pages: 13

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