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Hotel Continental

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blockbuster

A NEW BLOCKBUSTER IMAGE
Case Study I
MGT 201

Submitted by:

Group II: Ada Ballesfin Cel Dizon Reyvs Firmalino
A New Blockbuster Image

I. Point of View

Harry Wayne Huizenga, Chairman, Blockbuster

II. Major Problem

What steps should Blockbuster Inc. take to ensure the company’s sustainability in the long run?

III. Case Facts

To determine Blockbuster Inc’s market position and future business strategy, SWOT analysis was conducted and company traits and overall environment categorized as follows:

SWOT Summary

|Strengths |Weaknesses |
|High market share in the video rental industry |Company resources are finite/spreading resources too thin |
|High capital used to purchase new companies/products |No clear sense of direction for the future |
|Various business units |Over confidence in current market share |
|Opportunities |Threats |
|Video-rental business is thriving |Stuck in a market promising little or no growth in the future |
|Product integration possible through acquisition of related |Other media for home entertainment |

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