...Business Failure Analysis LDR 531/Organizational Leadership Business Failure Analysis Businesses are created with the intention to be successful, achieve goals, and create profits. The continuity of business success depends on the capability to forecast changes on markets and economies, and create a plan to adapt to change, if management failure to forecast changes, the business welfare will be unstable. Blockbuster was a leader on the movies rental business, and failure to reinvent as company, leading to failure. Business Failure Analysis determined Blockbuster’s vision and mission, indicators of the business failure and success from research, how organizational behaviors lead company’s failure, and how the role of leadership, management and culture of the organization in business failure. Business Failure Analysis explained techniques that Blockbuster must used to prevent the impending failure, identified potential barriers during the change process, evaluated the power and political issues within the organization, and described the steps followed to implement the organizational change based on John Kotter’s 8-step plan for implementing change. BUSINESS FAILURE ANALYSIS Blockbuster Inc. was an American-based home movie rental provider, and at its peak in the 2000’s had up to 60,000 employees and more than 9,000 stores. Companies objectives were achieved, become number one movie rental provider in United States of America, and spread their branch thru the world with...
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...Team B - Business Failure Analysis Jeffery Rhymes, Terri Zubrod, Abel Dominguez, Eric Paniagua, Su Rodriguez LDR/531 January 11, 2015 Professor David Warren Introduction The mission statement for Redbox and Blockbuster both have focused on providing customer satisfaction with media entertainment that includes movies and games. In the years prior to the inception of Redbox in 2002, Blockbuster offered customers a value price entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience (Poggi, 2010). Blockbuster Inc. was a global business with 8,000 stores and offered movie and game rentals for home use by consumers (Poggi, 2010). Since 1992, Outerwall LLC had looking for ways to provide value, convenience and simplicity to consumers and retailers with the kiosk brands best known, Coinstar a leader in money services and Redbox, the best value in home entertainment. Outerwall LLC has a network of more than 66,000 kiosks and will be re-imagining new retail solutions to fit everyday consumer needs for the present and the future (Outerwall.com, 2015). Blockbuster – Success and Failure Blockbuster’s vision Statement: "At Blockbuster, diversity means valuing differences. It's a corporate value that must be continually developed, embraced and incorporated into the way we do business" (Poggi, 2010). Blockbuster was a video rental store that started in Dallas, Texas the first store was opened in October, 1985 and the...
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...Failure Analysis/Change Strategy: Blockbuster vs Netflix LDR/531 Failure Analysis/Change Strategy: Blockbuster vs Netflix Organizational Behavior Theories The organizational behavior theories which explains Netflix’s success are two; decision-making and systems approaches. Netflix made the monumental decision to become a virtual dvd rental versus a brick and mortor provided a solution in the company’s goal and vision to be ahead of technological advances in the industry. Netflix took on the systems approach in understanding and measuring the company’s input and output processes. Netflix uses the systems approach to integrate and drive processes in developing adaptive capacities, driving innovation. Blockbusters organizational behavior theory focus was on scientific leadership. The company placed a great deal of focus on how to become more effective in the company’s brick and mortor business, redefining company objectives and direction. How employing this theory failed the company was the leadership decision to not pledge the same level or more focus on the click initiative which the company could not capture the needed momentum in becoming competitive with Netflix. Blockbuster could have had a more competitive edge over Netflix sustaining its presence in the industry if only the company could define better performance practices leveraging its click business over its brick and mortor presence. Role of the organization on the Fail/Success So how did an upstart company...
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...* Should Blockbuster have known that dramatic change to their Business Plans would be necessary? Blockbuster didn’t have a technology problem, because digital distribution was minimal, but rather a customer problem. It gave customers no reason to visit stores in lieu of the latest and greatest hit. (www.forbes.com/.../the-internet-didnt-kill-blockbuster-the-compa... Forbes Nov 8, 2013) * When should they have sensed or perceived a change to their business would be necessary? Lack of ease of accessibility and higher prices in connection to other video rental outlets. Blockbusters main competitors such as Netflix, Redbox, and many On Demand services seem to have a much better grasp of the importance of instant access at a lower price. (Blockbuster Inc. (SWOT analysis). http://www.yousigma.com/comparativeanalysis/blockbusterinc.html) * When should they have innovated or changed their plans to comprehend the perceived changes? Blockbuster’s biggest mistakes were that it failed to modernize its business strategy to include a multi-channel avenue for its customers to decide how they wanted to rent movies. Movie renters were and still are moving away from the traditional format of renting movies. Failure to adapt to changing consumer behavior and new technology helped companies like Netflix and Redbox gain considerable ground in the video rental industry. * What should they have considered when looking at their Porter’s Model? What do you think kept them from making...
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...Failure Analysis/Change Strategy LDR/531 October 27th, 2014 Professor Timothy De Long Failure Analysis/Change Strategy Introduction Comparing and contrasting failing and thriving businesses provides insight into best business practices. Examining a failed company, Blockbuster, and a successful company, Intuit, offers an opportunity to learn from managerial mistakes and triumphs. Failure and Success Blockbuster Inc. is an example of a failed business. Their updated mission, objectives, and vision were altered too late to keep up with the changing demand for convenient internet streaming videos. The company stated their “mission is to provide our customers with the most convenient access to media entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, by-mail, vending and kiosks, online and at home. We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience" (Farfan, 2014 Blockbuster's Mission Statement). Their vision was to “provide our customers with the most convenient access to media entertainment delivered through multiple channels…. Offer customers a value-prices entertainment experience… broad product depth… with local neighborhood convenience” (Blockbuster Goes Bust – Outfoxed by Redbox, Licked by Netflix," 2014, para.8). The updated objectives were reasonable but were implemented...
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...Failure Analysis/Change Strategy LDR/531 October 27th, 2014 Professor Timothy De Long Failure Analysis/Change Strategy Introduction Comparing and contrasting failing and thriving businesses provides insight into best business practices. Examining a failed company, Blockbuster, and a successful company, Intuit, offers an opportunity to learn from managerial mistakes and triumphs. Failure and Success Blockbuster Inc. is an example of a failed business. Their updated mission, objectives, and vision were altered too late to keep up with the changing demand for convenient internet streaming videos. The company stated their “mission is to provide our customers with the most convenient access to media entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, by-mail, vending and kiosks, online and at home. We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience" (Farfan, 2014 Blockbuster's Mission Statement). Their vision was to “provide our customers with the most convenient access to media entertainment delivered through multiple channels…. Offer customers a value-prices entertainment experience… broad product depth… with local neighborhood convenience” (Blockbuster Goes Bust – Outfoxed by Redbox, Licked by Netflix," 2014, para.8). The updated objectives were reasonable but were implemented...
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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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...teenagers, and adults in their 20’s and 30’s. The key issue facing Infogrames is whether name branding is a source of sustainable competitive advantage. Conclusion and Recommendations Infogrames’ implementation of a name branding strategy will not be successful for two reasons. First, the following analysis reveals that there are three key success factors for software companies participating in this industry. Infogrames’ acquisition of Hasbro does not help them to better meet any of these three objectives. Second, Infrogames has rationalized the acquisition of Hasbro based on the name branding strategy using the Atari moniker. The analysis, however, reveals that there is no competitive advantage gained on the software side of this industry for name branding. In short, consumers do not appear to make their game purchases with any regard whatsoever for the company that produced the game. As such, the acquisition of Hasbro, and the name branding strategy, will be a failure for ISEA because neither the acquisition nor the branding strategy contributes to the key success factors identified for this industry or to achieving a sustainable competitive advantage. Analysis External Environmental Conditions (General Industry): The gaming industry is growing, but it is consolidated, which produces a high level of competition between companies fighting for market share....
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...Blockbuster Videos Environmental Impact Analysis Once considered the leader in the video rental industry, Blockbuster Videos now finds the business in a downward spiral and is now in the process of filing for Chapter 11 reorganization. Most of the stories about the demise of Blockbuster focused on Netflix and the move to digital technology, but the underlying reason Blockbuster failed was a lack of strong and credible leadership. While battling against its external environment such Redbox and Netflix, Blockbusters was also dealing with internal power struggles from top executives. From an external standpoint, there were several factors that led to Blockbuster’s decline. First, DVD costs declined substantially through increased economies of scale and reduced manufacturing costs. This led to a lower price for DVDs and had many consumers buying the videos outright, instead of opting to rent. Second, rental copies were expensive for Blockbuster to manage, which is why most of the company’s revenue came from late fees on returns. In addition, these DVD rentals are only made once and are costly to replace if lost or stolen. Third, large retail chains, such as WalMart, started to sell DVDs below wholesale, further diluting the market. However, despite all of these threats, the one external threat that had the largest impact was Netflix. Netflix stole market share by combining video sales with on-demand streaming videos at a fraction of the cost. Not only...
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...Blockbuster Video Customer Survey Kurt Dessert, Shevonne Kilpatrick, Erik Kraft, Stephanie Upchurch QNT/561 November 11, 2013 Hui Zhang/Thomas Allen Blockbuster Video Customer Survey Background and Description of Problem For many years, Blockbuster led the pack in the home movie, video, and game rental services. The company had a sound and simple business model that enabled customers to watch top-billing movies in the comforts of their living room for a fraction of what it would cost to attend the movies. In addition to providing customers with low cost video service and comfort, Blockbuster housed more than 5,000 retail stores conveniently located in every community. It was a solid business model until technology and a new competition displaced it. Team A will address the causes that led to the fall of Blockbuster such as declining profits, low adaptability, and low accessibility. Furthermore, Team A will develop a survey questionnaire to address the company’s problems and determine possible solutions for Blockbuster LLC. Blockbuster LLC, formerly Blockbuster Inc., is an American-based provider of home movie and video game rental services. Blockbuster distributes its products to customers in four ways: in-store rentals/sales, DVD-by-mail, vending machines, and online streaming (Wikinvest, 2013). The company’s in-store selection offers both new/used movies, and game rentals to include Blu-ray DVDs. Their mail service offers their customers an Internet-based subscription...
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... quality, and pricing schemes. Blockbuster quickly emerged in 1985 and began buying every small store they could, becoming the de facto sole franchise for movie rentals. This changed in 1999 when Netflix first began their DVD by mail service. Netflix rentals allowed viewers and movie watchers to rent movies from the comfort of their own home. Additionally, the customer wasn’t penalized for returning the movie late. The years that followed produced a long, protracted battle that Netflix appears to have survived on top. That being said, both companies made significant mistakes and have lost millions of potential customers in the process. In this paper, a brief history of each of the company will be presented, a diagnosis of the major problems, analysis into these problems, an evaluation of potential solutions and finally, recommendations for Blockbuster and Netflix to be able to address their problems. ANALYSIS Scott Cook founded Blockbuster Video and opened the first store in Dallas, Texas on October 26, 1985. Later bought by entrepreneur Wayne Huizenga, Blockbuster Video grew to over 4,000 stores in the mid-2000’s and earned the spot as the number one video rental store in the country. Blockbuster made frequent changes to their business model, by first adding video games; later music was added. In 1993, Viacom purchased Blockbuster for $8.4 billion dollars but by 2006, they were only worth $500 million dollars. In 2004, Blockbuster launched their online DVD rental...
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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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...Hunter May 25, 2010 Case Study: Blockbuster, Inc. [pic] Table of Contents: Dave Hasty Mission Statement, History of Blockbuster, pg. 3-5 Carlton Graham/Paul Noonan Marketing Strategy, 5-6 Marketing Mix, 6 Target Markets, 6-7 Micky Thakkar Marketing Objectives and Goals 7-10 Paul Noonan/Micky Thakkar Advertising and Promotion Strategies 10-13 Environmental Analysis and Porter Analysis 13-15 Christina Carroll SWOTs 15-19 Netflix SWOT Redbox SWOT Blockbuster SWOT Competitive Advantage Strategic Focus Paul Noonan Financials 19-20 Future Trends 20 Recommendations 20-22 All Questions 22-25 Bibliography 26 Compiled by Paul Noonan The History of Blockbuster Inc. Blockbuster’s mission statement is “To be the global leader in rentable home entertainment by providing outstanding service, selection, convenience and value.” Blockbuster is an American based chain of retail stores renting DVD, Blu Ray, and video games. They have over 9,000 locations in the US and 25 other countries worldwide. It is headquartered in the Renaissance Tower located in Dallas, Texas. The first store was opened in Dallas, Texas 1985 by David Cook. Cook had started a company called Cook Data Services Inc. in 1982 selling software to Texas’s oil and gas industries.[i] When the industry went flat Cook was searching for another source of revenue. His wife a movie fan suggested getting into the movie rental business. At the time rental stores were small...
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...Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Overview/Introduction Through an analysis of the case study of Apple, Inc. this paper will describe key elements that helped make Apple the successful company it is today. The analysis of the three key environments of a business will be examined, including; general, industry, and competitor environments. Also explored will be the available lessons that readers and other companies can garner from Apple’s success. Apple’s Success Story Apple’s success rests squarely on the shoulders of innovation. In the beginning, the founders of Apple, Stephen Wozniak and Steve Jobs focused on providing something new to the market. They not only brought innovative products to consumers like the Mac computer and iPod, they did it in an innovative manner. Memorable advertising campaigns based on consumer reaction rather than technological jargon made the beginnings of a cult-like following. Apple lost its way in the mid to late eighties as it struggled to find its focus and protect its core competencies, resources, and capabilities. Steve Jobs returned to the company after a decade removed, recognized the speed with which technology moves and took steps to insure that Apple, Inc. was strategically focused to be the leader in new technology. The key to Apple’s success is their mission to make the Mac “the hub of the consumers’ digital lifestyle” (Ireland, 2009, p. C-16). From this point...
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...wide selection of films. SWOT Analysis Strength: * Netflix is the world’s largest subscription service for streaming movies. It had attracted 14 million subscribers as of April 2010. * Netflix has the fastest delivery time compare with any other online DVD rental companies. As of 2010, additional improvement in Netflix’s distribution and shipping network had result in one-business-day delivery capability for 98 percent of Netflix’s subscribers * Netflix has no late fees and no due dates which eliminated the hassle of getting DVDs back to local rental stores by the designated due date * Netflix had been highly rated in online retail customer satisfaction by Nielsen Online and ForeSee/FGI Research. Weaknesses: * Netflix accesses only to internet users * Subscriber cancellations are increasing from 3,113,000 in 2006 to 6,444,000 in 2009. (To grow its subscriber base, Netflix should attract new subscribers as well as avoided cancellation.) Opportunities: * As the result of growing demand of streaming video, online movie rental is rising. Netflix has a large capacity to attract more subscribers. * Expansion into foreign markets * Price for wide-screen HDTVs had been dropping rapidly, and picture quality was exceptionally good. Threats: * DVD competition from Redbox and Blockbuster * Technology...
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