Blockbuster Case 01

Department of Agribusiness Management and Entrepreneurship

College of Economics and Management

University of the Philippines at Los Baños College, Laguna

The New Blockbuster Image

Case Study no. 1 submitted to

Dr. Jimmy B. Williams

In Partial fulfillment of the requirement for

MGT 201

By

Group 2

Patrick Val T. Mallari

Melanie A. Mapoy

Gonver S. Valencia

August 27, 2016

Department of Agribusiness Management and Entrepreneurship

College of Economics and Management

University of the Philippines at Los Baños College, Laguna

The New Blockbuster Image: Case Study

I.

Point of view:

The point of view of the Top Management, Chairman H. Wayne Huizenga shall be taken

since the problem requires critical thinking and planning for the betterment of the company.

II.

Major Problem:

Started in 1985 as a video rental store and eventually became Video Rental Giant in the

United States, Block Buster Company with its Chairman H. Wayne Huizenga started to

diversified and venture to another related business platform. What business strategy approach the

company will institute to maintain its leadership in the market?

III.

Case Facts

A. The Company and its framework



Blockbuster began its operation in 1985 with one store and within 8 years, it increased to

3,200 stores in 10 countries around the world.



By year 1989, Blockbuster was known as the “America’s Family Video Store”.



The chief marketing officer of Blockbuster Tom Gruber, former McDonald’s marketing

executive, stated that Blockbuster exhibits same marketing principles with McDonald,

described as having a fast-service, convenient locations, family oriented and appealing to the

kids.



In November 1992, Blockbuster acquired Sound Warehouse and Music Plus Chains (a music

retailing business).



In December 1992, Blockbuster joint-ventured with Virgin Retail Group (an entertainment

retailing chain) to open “megastores” in United States, Europe and Australia.



In February 1993, Blockbuster bought Republic...