Blockbuster

Blockbuster Incorporated

A Strategic Analysis for the Troubled Movie Rental House (Internal Analysis)

Erin M. Clark

December 4, 2007

BUSA 499: Strategic Management Pacific Lutheran University Dr. Pham

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Table of Contents

I.

Introduction/Strategic Profile A. B. Executive Summary Company Overview

II.

Appendix B: Internal Analysis A. B. C. D. E. Financial Analysis Resources Value Chain Analysis Capabilities Distinct Core Competencies

III.

Appendix C: Strategy Formulation A. B. C. Major Issues Sustainable Solutions Implementation Plan

IV.

Works Cited

Clark 3 I. A. Introduction/Strategic Profile Executive Summary The purpose of this case analysis is to evaluate the internal and external environment of Blockbuster Incorporated to determine the strategic position of the firm. This evaluation will be further used to identify and recommend solutions to problems being faced by Blockbuster. Blockbuster is the largest retail movie rental store in the world. Responsible for over a billion rentals of DVDs and video games per year, the organization operates in over twenty-two countries with over eight thousand stores. In addition to further expansion into other countries, they have recently made the transition into a new market. Utilizing a web based rental system, they are taking on serious competition such as Netflix and Comcast by offering both DVD by mail and downloadable, or streaming, rentals. Blockbuster is currently undergoing an organization-wide overhaul and divesting from foreign interest and refocusing on their core businesses in the United States. (1) B. Company Overview The company was founded in 1982 in Dallas, Texas. Since then Blockbuster has spread out and made their brand a household name. They contribute their success to great customer service and loyal customers. As cited in their website, Blockbuster prides themselves in their products and has launched a totally new way to rent movies, through its Total...