8-Step Approach

8- Step Approach

MGT435: Organizational Change

Introduction

Every company goes through period of time where change is needed in order to maintain consistent and growing revenue and profits. In order to have a successful transition there are several steps that need to be completed to ensure each phase runs smoothly without sudden failure.

Company Overview

Let’s look at Blockbuster Inc., they opened their first store in 1985 and took hold of the home video rental chain. There was not much competition to rival the fast growing brand and it also seem like no one could much their huge catalog of new releases and specific titles. The 1990’s brought a merger with Viacom and acquisitions of several other businesses like Sound Warehouse, Xtra-vision and Music Plus. These were significant signs that Blockbuster Inc was going to be around for a long time. After about 10 years or so Blockbuster Inc. separated from Viacom and Launched an Online DVD Subscription plan in 2004. This would be the battle that Blockbuster Inc. would have never imaged what was going to unfold in the next coming years.

Diagnosis

The need for change was very certain since the digital age was quickly establishing a new brand of customers and a new brand of demands. Their closet competition had already been in the online DVD subscription business many years before Blockbuster Inc. started and they would use their knowledge and forward thinking to increase their growth and profits. Blockbuster Inc. new that they needed to shift from only in store rentals and purchases and begin the online DVD subscription because of customer convenience and the growing competition like Netflix and Redbox. The online customers love the idea of searching thousands of titles without leaving home and it showing up at their doorstep within a day a two.

Kotter’s 8-Step Approach

The sense of urgency was clearly on the rise at Blockbuster Inc. and customers were leaving the stores in favor of...