Blockbuster Case Essay

1913 Words Oct 26th, 2012 8 Pages
Fall 2011 | BlockBuster Case Analysis | |

1. What role has Netflix played in the development of Blockbuster’s strategic planning? How important is Netflix to Blockbuster’s future strategic plans?

Before answering this question ,I would like to highlight that It s clear after reading the case that blockbuster main problem was making strategic plan without considering its scorecard as they never anticipated change or tried to early explore strategic alternatives and they never examined consumer or competitive responses.
In a nutshell they were always reactive and not proactive and they never considered that new entrants always seek market space that leaders ignore.

To answer this question, I will try to answer the three
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* Timing for launching products or new services is very important and Blockbuster was always a step behind Netflix and that affected their market share dramatically

* Finally Blockbuster should invest more in market researches and try to be first in offering new ideas and services that best fit customer changing needs .

2.How will new competition from Redbox and digital content providers force Blockbuster to alter its strategy?

In answering this question I we will follow same criteria which is trying to answer the three major strategic marketing questions Where-How-When to compete.

Where to Complete:

* As previously mentioned Blockbuster’s targeted the whole market of home movie rentals in the US and then expanded to target international markets and that worked fine at the beginning but they kept using the same old approach which is rental stores that later narrowed their market segment as consumer behavior changed .

However Redbox followed same approach but they were smarter as they figured out that it doesn’t matter how big are your stores or how many but what really matters is how are they convenient to customer needs and buying behavior.

Digital content providers where innovative and they knew that rental stores is aging so they used a different approach depending on technology targeting internet users which gave them massive new market and internet was a fast effective tool to reach customers worldwide.

How to

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