this case a rental movie. Considering the movie market now a days this means that renting the movie should be quick, cheap and easy. This might be hard if you like blockbusters have actual stores. However, it might improve customer relationships and feedback on products as they get a personal connection with their customers. As Blockbusters in recent years started offering online alternatives as well as vending machines they actually reach all potential target markets (consider people without internet-connection)
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Identify the most vital areas for change Blockbuster had numerous areas for change beginning with their upper management, because as a leader in a top company they must be prepared for change. With the ever changing demographics of an organization Blockbuster should have been able to change with the competition, faster technology, and change with the times. The bottom line is in order to survive Blockbuster needed to change the direction of how they do business. This means they should have went
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Table of Contents Introduction……………………………………………………………………........1 Industry Overview………………………………………………………………2-8 Client Profile & Competitor Analysis……………………………………9-17 Comparative Analysis……………………………………………………….18-19 Consumer Analysis………………………………………………………….20-23 Consumer Insights………………………………………………………….24-29 Survey…………………………………………………………………………….30-31 Results……………………………………………………………………………32-41 Recommendations…………………………………………………………..42-45 Appendix I……………………………………………………………………..46-48 Appendix II…………………………………………………………………
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Purpose of report (and recommendation) This reports aims to analyze the situation in 2011. -‐In first understand the market evolution and competition, (Blockbuster: finding his business model, confronting with Netflix, finding his reaction and analyzing it) -‐Analyze Netflix’s innovation, what kind of change it made
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options for customers that want to catch up on TV shows. Netflix also offer their customers online queues for desired discs, and postage-paid return envelopes, and no late fees. One unsuccessful outcome for Blockbuster is that Blockbuster did not offer the same accommodation that Netflix have. Blockbuster offered customers a paper-per-view video-on-demand service and you rent or buy each movie individually. This is a disadvantage for customers who do not have access to cable or satellite services or if
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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
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their rentals. Effect on Competition The trends in the 1990s were good for the competition, mainly Blockbuster. Blockbuster had the geographical advantage with 5194 locations across US. It was said that “70% of the U.S. population lives within a 10 minute drive of Blockbuster”, giving the convenience needed for impulse buyers. With shelf space mainly dedicated for new releases, Blockbuster
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and Pop Shop in the local town or down the street to the business model that Blockbuster had implemented. Location, Location, Location was the model. Open more stores and increase your market penetration. Blockbuster had approximately 7,800 brick and mortar stores, each carrying approximately 1000 titles.1
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the two branches into different businesses without changing the entire business. Blockbuster was more of an Operational Excellence value company. They had the contacts, supply chain, and managing that brought about the success of the movie rental business. Their enormous late fees takes away the customer intimacy value. They cared more about how to make the most money rather than how their customers felt. For Blockbuster it was systemic. Because they were a brick and mortar only business for many years
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these principles. A specific service that I use for a good example is Netflix. There is no tangible product, since the entire service is data streaming in the form of shows and movies. Netflix is a marketing genius. They have been able to put Blockbuster out of business, and have expanded into nearly all markets of electronic delivery available! They are available on several gaming platforms, on demand applications built in to hardware, computers, tablets, and even mobile phones. All while they
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