Blockbuster

Blockbuster Overview

Blockbuster Inc. incorporated in 1985 and headquartered in Dallas, Texas, with approximately 6,500 in-store locations in the U.S. This company currently is offering traditional rental services, retail movie and game entertainment through various distribution channels. Blockbuster is oriented to please customers for the purpose of their satisfaction and convenience based on a value-priced entertainment experience (10-K). However, the company could not properly confront other growing competitors. Blockbuster had experienced significant decline in their growth rate and struggled with more than a million dollars in debt. Finally, Blockbuster Inc. filed for bankruptcy protection (Ben Fritz, 2010). Therefore, Blockbuster is required to correct implementation to re-survive in the rental service market with ultimate competitive strategies. Also, to properly implement its strategies, external and internal analysis of Blockbuster are needed, so we are going to talk more about those two later on.

External Analysis

General Environment

In order to understand how a company can operate within its industry, it is important to first understand the general environment. To do this, we created a STEEP analysis to reach every aspect within this environment.

For the social segment of the analysis, it involves looking at the particular trends of how and where people are watching movies today. People are definitely not going to movie theatres as much as they once did. This could be because of the increased ticket prices in this poor economy, and/or because many on-demand services have movies that are still in theatres available to purchase at home.

Consumers are also not renting as many DVDs from actual brick-and-mortar stores as they once did because of this service and being able to rent and watch movies all from within the comfort of their home. It is convenient in the way that they purchase the movie and are billed at the end of the month, and also...