Black Buster

Problem – Black baster consider one of major top video rental industry, few years ago BlackBuster start to lose share market due to new technology such as on line movies (digital downloads and electronic distribution ), cable providers, and increase competitors such as Red box , Amazon, and Netflix. What black Buster has to do in order to stop losing share market and traditional; DVD rental industry is clearly heading in to its decline phase?

Facts and analysis

• In 1985 Blockbuster started as small entrepreneurial venture (computerize video rental stores).

• In 1986 Blockbuster transformed his company in to blockbuster Entertainment

• In 1987 Blockbuster expansion in USA from 130 stores – 1500 stores by investor Wayne Huizenga

• From 1990 – 1994 blockbusters expand international with 875 stores in UK.

• From 1994- 1997 blockbuster experienced upper management turnover,

• In 1998 new CEO John Antioco for blockbuster make major changes suck as reformatted the stores as rental facilities for movies and game, and harvesting of the blockbuster back to focus on the movies and game rental industry

• In 1999 Antioco restructure blockbuster to the three major operating unite, retailer-commerce and data based and brand and DVD introduced instead VHS tape

• In 2002 the share Blockbusters market increases due to introduce DVD.

• In 2003 Blockbusters lunched website and rental subscription program the customer no longer worry about the extend viewing fees and Dropped late fee Caused to Major lose $400 Million revenue.

• In 2004 Movie Gallery successfully outbid Blockbuster in $1.2 billion acquisition of Hollywood Entertainment

• In late 2008 Netflix enjoy increase sales on line $320 Million

• In 2009 Netflix enjoy first quarter increase sales on line $394 Million

• Today Blockbusters face extensive competition from 21 major competitors in sales and rental industry, Wal-Mart, Target, BestBuy, Amazon, and Time Warner and Blackbuster continue...