...Blockbuster: Movie Rentals in the Digital Era SWOT Analysis Internal Strengths If a strength or a weakness is ambiguous, explain the reasons that you have to classify it as a strength or a weakness. * Overall size of the company: Blockbuster is #1 in the industry. In the entertainment industry size is very important. Large companies are able to get better deals from movie studios. * Management team is open change. The management of the company appears to be open to new ideas. This will allow the company to adopt to new challenges. * Aggressive expansion and acquisition performance. The company seems willing to expand to new areas. They have a successful record of successfully acquiring other businesses. * Established name and customer loyalty. The company has a very widely recognized name. Many consumers are very loyal to Blockbuster. It is very likely that they will purchase the company’s products if they are offered through a different format. * Offers rentals via stores and online * Strong international presence. Blockbuster has established a very strong brand equity in many countries of the world. This is a major strength if the company wants to expand internationally. Internal Weaknesses * Many format changes over its history has created consistency issues. This has resulted in confusion among consumers. Many consumers have negative feelings towards Blockbuster based on their past experiences. * Lack of first mover...
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...Jackie Sutton Case Study Report COMPANY NAME/WEBSITE/INDUSTRY Company Name: Blockbuster Website: www.blockbuster.com Industry: Video rental BACKGROUND/HISTORY Blockbuster was founded by David Cook and opened its first store in 1985 in Dallas, Texas. When the company first began the main focus was on home video rentals but in 1987 Blockbuster won a major lawsuit against Nintendo and paved the way for customers to rent video games as well. The company reached its peak in 2009 and then started to see intense competition from other video rental companies like Netflix. Although the company filed for bankruptcy in 2010, it was purchased by the Dish Network family in 2011 and “is a leading global provider of in-home movie and game entertainment with over 2,500 stores throughout the Americas, Europe, Asia and Australia. The Company is one of the strongest and most recognizable entertainment brands in the world.” (“Company overview,” 2011). Prior to its 2011 Dish Network acquisition, James Keyes served as the CEO. “Dish Network reported that its Blockbuster unit had turned a $13.9 million profit for the first quarter on revenue of nearly $334 million” (Frankel, 2012). SWOT ANALYSIS Strengths * High brand familiarity. * Successful operations in global markets. * Loyal customer base. * Wide array of choices offered to customers. | Weaknesses * High operating costs. * More expensive than some competitors offering same services. * Rentals need to be returned...
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...9-607-138 REV: APRIL 27, 2009 WILLY SHIH STEPHEN KAUFMAN DAVID SPINOLA Netflix Late one afternoon in January 2007, Reed Hastings had just concluded a meeting with his senior management team in the King Kong board room at Netflix’s corporate headquarters in Los Gatos, California. Hastings, the founder and CEO of the company, which pioneered online DVD rentals, was preparing to unveil Netflix’s highly anticipated entrance into the online video market. Many industry observers believed that the ability of customers to order movies through their computers for instant viewing, commonly referred to as video-on-demand (VOD), would quickly impact the large user base for Netflix’s core business. Hastings looked across the third floor of the office building and the conference rooms named for some of his staff’s favorite films. A love of movies clearly ran deep among Netflix employees, and he was confident that one way or another, his team would maintain the company’s position as a leader in the home video market. But, as he reflected upon the years of investment and discussions surrounding the new feature that Netflix would be offering its customers, he could not help but think of the merits of the paths not chosen. As the management team filed out of the board room around him, Hastings returned his thoughts to the present. While he believed that the DVD rental market would remain healthy for years into the future, he knew that this announcement would impact not just the market’s...
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...9-607-138 REV: APRIL 27, 2009 WILLY SHIH STEPHEN KAUFMAN DAVID SPINOLA Netflix Late one afternoon in January 2007, Reed Hastings had just concluded a meeting with his senior management team in the King Kong board room at Netflix’s corporate headquarters in Los Gatos, California. Hastings, the founder and CEO of the company, which pioneered online DVD rentals, was preparing to unveil Netflix’s highly anticipated entrance into the online video market. Many industry observers believed that the ability of customers to order movies through their computers for instant viewing, commonly referred to as video-on-demand (VOD), would quickly impact the large user base for Netflix’s core business. Hastings looked across the third floor of the office building and the conference rooms named for some of his staff’s favorite films. A love of movies clearly ran deep among Netflix employees, and he was confident that one way or another, his team would maintain the company’s position as a leader in the home video market. But, as he reflected upon the years of investment and discussions surrounding the new feature that Netflix would be offering its customers, he could not help but think of the merits of the paths not chosen. As the management team filed out of the board room around him, Hastings returned his thoughts to the present. While he believed that the DVD rental market would remain healthy for years into the future, he knew that this announcement would impact not...
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...4-1-2013 A Blockbuster Failure: How an Outdated Business Model Destroyed a Giant Todd Davis John Higgins Recommended Citation Davis, Todd and Higgins, John, "A Blockbuster Failure: How an Outdated Business Model Destroyed a Giant" (2013). Chapter 11 Bankruptcy Case Studies. http://trace.tennessee.edu/utk_studlawbankruptcy/11 This Article is brought to you for free and open access by the College of Law Student Work at Trace: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Chapter 11 Bankruptcy Case Studies by an authorized administrator of Trace: Tennessee Research and Creative Exchange. For more information, please contact trace@utk.edu. A Blockbuster Failure: How an Outdated Business Model Destroyed a Giant Todd Davis, John Higgins Table of Contents I. Introduction 1 II. Background Information 1 a. Business Model 5 b. Key Events Leading to Chapter 11 7 III. Chapter 11 12 a. “The Plan” 12 b. Filing 14 c. Petition Schedules: Liabilities, Creditors, and Assets 15 d. First Day Motions 19 e. DIP Financing 28 f. The Unsecured Creditors Committee 32 g. Administrative Expenses – Professional Fees 32 IV. The § 363 Sale 38 a. Road to the § 363 Sale 38 b. The Motion 41 c. Sale Terms 42 d. Blockbuster’s Business Justification for the § 363 Sale 46 e. Assumption and Assignment 48 f. Administrative Relief Requested 49 g. Creditors Object to the Proposed...
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...To: Reed Hastings, Founder and CEO From: Omar Medina Consulting RE: Growth strategy/Penetration of the video-on-demand (VOD) market Netflix’s competitive environment is becoming hostile; a strategy for entering the video-on-demand (VOD) market must be selected in order to achieve growth targets. This strategy must address issues related to user connectivity, content limitations and initial target market. It is recommended (Exhibit 1) that Netflix develop, and integrate, a VOD platform for its core offering. Netflix’s current subscriber base is built on early adopters; these individuals, with free VOD access, will support and help market the VOD platform. Partnerships must be established to expand connectivity options (Exhibit 2) to overcome a key barrier. Strengthening relationships with studios and TV networks is a primary focus in order to obtain digital distribution rights. As a content risk management measure, Red Envelop Entertainment will continue to aggressively pursue high quality content for acquisition. Several alternatives (Exhibit 1) were evaluated and ranked against key decision criteria. Customer satisfaction (quality of the experience) is the most important element to Netflix’s business. Netflix has one channel for customers, their website. With high customer acquisition costs, a positive experience is necessary to reduce churn rates. High customer satisfaction will increase revenue growth by adding and retaining subscribers. As a public company...
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...Table of Contents Company and Background....................................................................................................................................4 Rationale..................................................................................................................................................................4 Target Audience.......................................................................................................................................................4 Company History.....................................................................................................................................................5 Legal Status..............................................................................................................................................................5 Company Issues.......................................................................................................................................................5 Vision Statement......................................................................................................................................................6 Mission Statement....................................................................................................................................................6 Ethics.....................................................................................................................................
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...2010 Santa Clara University MGMT 162- Capstone Professor Schneider Winter Quarter:2010 NETFLIX: A COMPANY ANALYSIS Prepared By Group 5: Alex Krengel, Annie Dudek, Rick Momboisse, Trish Paik, & Tyler Martin  Table of Contents I. Wall Street Journal Article and Executive Summary ..4 I A. Wall Street Journal Article 4 I B. Executive Summary ..5 II. External Analysis ..7 II A. Industry Definition ..7 II B. Six Industry Force Analysis ..8 II C. Macro Environmental Forces Analysis, Economic Trends, and Ethical Concerns ..15 II D. Competitor Analysis ..17 II D. 1 Netflix’s Competitors ..17 II D. 2 Netflix’s Primary Competitors ..17 II D. 3 Primary Competitors’ Business Level and Corporate Level Strategy ..18 II D. 4 How Competitors Achieve Their Strategic Position ..18 II D. 5 Willingness to Pay ..21 II D. 6 Comparative Financial Analysis ..22 II D. 7 Implications of Competitor Analysis ..23 II E. Intra-Industry Analysis ..24 III. Internal Analysis ..24 III A. Business Definition/Mission ..24 III B. Management Style ..24 III C. Organizational Structure, Controls and Values ..25 III C. 1 Organizational Structure ..25 III C. 2 Organizational Controls ..25 III C. 3 Organizational Values ..25 III D. Strategic Position Definition ..26 III D. 1 Corporate Level ..26 III D. 2 Business Level ..27 III D. 3 Resource & Capability Level ..28 Value Minus Cost Profile ..28 Value Chain ..28 VRIO Analysis ..28 Consumer Retention Analysis ..29 4Ps Analysis ...
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...Battle of the Bottle Continues, 395 2. Arun Ice Cream, 409 3. Gujarat Co-Operative Milk Marketing Federation Limited (GCMMF), 421 4. The Park, Calcutta, 439 5. Kanpur Confectioneries Private Limited (A), 461 6. Kanpur Confectioneries Private Limited (B), 467 7. Aravind Eye Care System: Giving the Most Precious Gift, 473 8. ITC Limited, Bangalore (A), 495 9. ITC Limited, Bangalore (B), 499 10. The Living Room: Redefining the Furniture Industry, 505 11. Cognizant: Preparing for a Global Footprint, 515 12. One Mission, Multiple Roads: Aravind Eye Care System in 2009, 535 13. Wal-Mart Stores, Inc. (WMT), 555 14. Alibaba.com, 583 15. Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV, 597 16. Blockbuster Acquires Movielink: A Growth Strategy?, 615 17. A Horror Show at the Cinemaplex?, 627 18. JetBlue Airways: Challenges Ahead, 635 19. Blue Ocean Strategy at Henkel, 655 20. Nucor in 2009, 663 21. TNK-BP (Russia) 2008, 687 22. Barclays: Matt Barrett’s Journey—Winning Hearts and Minds, 701 23. Nintendo’s Disruptive Strategy: Implications for the Video Game Industry, 707 Coca-Cola vs. Pepsi in India: The Battle of the Bottle Continues Case 1 S. Manikutty Soft drinks or cool drinks, as they are known in India, refer to non-alcoholic drinks served in bottles or other packaging, to be distinguished from hot beverages such as coffee and tea, or cold beverages such as squashes and fresh lemon syrups or syrups of different flavors mixed with water...
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...Omgevingsanalyse digitale (online) distributiemodellen in de filmindustrie (in opdracht van BAM) Sophie De Vinck (FWO, IBBT-SMIT) 1 juli 2009 1 1 1 2 3 4 Inhoud Inhoud ................................................................................................................................ 2 Lijst van Afbeeldingen ........................................................................................................... 4 Inleiding .............................................................................................................................. 5 Kansen en uitdagingen voor de (Europese) filmdistributie ten gevolge van digitalisering: een 4.1 4.2 Impact van digitalisering op de filmsector: van waardeketen tot waardenetwerk ...................... 7 Online on demand distributie van film: cruciale issues .......................................................... 9 De long tail revisited ................................................................................................ 10 Rechten beschermen versus piraterij .......................................................................... 12 De chronologie van de verschillende media ................................................................. 13 Specifieke struikelblokken voor het online aanbieden van Europese films......................... 14 De problematiek van de multi-territoriale licenties .................................................. 15 Culturele diversiteit...
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...informationInformation Rules A STRATEGIC GUIDE TO THE NETWORK ECONOMY Carl Shapiro Hal R. Varian HARVARD BUSINESS SCHOOL PRESS BOSTON, MASSACHUSETTS Copyright © 1999 Carl Shapiro and Hai R. Varian All rights reserved Printed in the United States of America 03 02 01 00 99 5 Library of Congres§ Cataloging-in-Publication Data Shapiro, Carl. Information rules : a strategic guide to the network economy / Carl Shapiro and Hal R. Varian. p. cm. Includes bibliographical references and index. ISBN 0-87584-863-X (alk. paper) 1. Information technology—Economic aspects. 2. Information society. I. Varian, Hal R. II. Title. HC79.I55S53 1998 658.4'038—dc21 98-24923 GIF The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984. To Dawn, Eva, and Ben To Carol and Chris Contents Preface ix l The Information Economy 2 Pricing Information 19 3 Versioning Information 53 4 Rights Management 83 5 Recognizing Lock-In 103 6 Managing Lock-In 135 7 173 Networks and Positive Feedback 8 Cooperation and Compatibility 9 Waging a Standards War 10 Information Policy 227 261 297 viii I Contents Further Reading 319 Notes 327 Bibliography 329 Index 335 About the Authors 351 Preface Luck led us to write this book. Each of us became economists because we wanted to apply our ...
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...Information Rules A STRATEGIC GUIDE TO THE NETWORK ECONOMY Carl Shapiro Hal R. Varian HARVARD BUSINESS SCHOOL PRESS BOSTON, MASSACHUSETTS Copyright © 1999 Carl Shapiro and Hai R. Varian All rights reserved Printed in the United States of America 03 02 01 00 99 5 Library of Congres§ Cataloging-in-Publication Data Shapiro, Carl. Information rules : a strategic guide to the network economy / Carl Shapiro and Hal R. Varian. p. cm. Includes bibliographical references and index. ISBN 0-87584-863-X (alk. paper) 1. Information technology—Economic aspects. 2. Information society. I. Varian, Hal R. II. Title. HC79.I55S53 1998 658.4'038—dc21 98-24923 GIF The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984. To Dawn, Eva, and Ben To Carol and Chris Contents Preface ix l The Information Economy 2 Pricing Information 19 3 Versioning Information 53 4 Rights Management 83 5 Recognizing Lock-In 103 6 Managing Lock-In 135 7 Networks and Positive Feedback 173 8 Cooperation and Compatibility 227 9 Waging a Standards War 261 297 10 Information Policy viii I Contents Further Reading 319 Notes 327 Bibliography 329 Index 335 About the Authors 351 Preface Luck led us to write this book. Each of us became economists because we wanted to apply our analytical training to better understand...
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