Blockbuster Case Study

In: Business and Management

Submitted By armeemom
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How will new competition from Redbox and digital content providers force Blockbuster to alter its strategy?
At their physical retail locations, Blockbuster sells movie theatre type food items to enjoy while watching your movie rental. Blockbuster has recently weighed in with kiosks in locations to compete with Redbox. One of the advantages is promoting these new kiosks is promoting the availability of new releases as compared to Redbox or Netflix in addition to the available choices. I believe Blockbuster’s strategy should be one that capitalizes upon availability and choices. I also believe Blockbuster’s strategy should encompass or revising their distribution channels. Retail stores pose higher overhead and therefore cut into the pricing strategy. As technology advances, moviegoers are now looking for access to movies and entertainment that is instant and convenient. Blockbuster has answered this demand with their Total Access online program.

What value-added components could Blockbuster offer to the movie studios that might entice them to more closely align with Blockbuster as a distribution channel? The value-added components would be to collaborate with channels such as cable or satellite providers such as Dish Network. The opportunities this present are channels such as pay per view that are offered by satellite and cable companies. The Total Access can then be acclimated online on the cable and satellite companies, which provides virtual guarantee for movie studios.

In the long term, how can Blockbuster increase the value-added components of its product offering in order to offset the inconveniences associated with its traditional brick-and-motor movie rental business? Will Blockbuster survive, as we know it today? Explain.
I feel Blockbuster has a fresh an opportunity to now reassess their marketing strategy and how they will move…...

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