Blockbuster Case 3

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Case Analysis 3: Blockbuster Identification of the strategic issues and problems Beginning with minimal competition, Blockbuster is a company recognized in its industry as one of the first worldwide powerhouses in media and game rentals. As technology and competition continuously grows, Blockbuster increased their strategic focus to preserve their brand’s global power through strategic alliances. Their multiple channels in media entertainment keep them at a competitive advantage but the concern remains that their dependency on assets and relationships isn’t what will keep the company ahead in the future. Blockbuster’s reliance on this alone, as a strategy to continuously compete with evolving times, will be their biggest weakness. Opportunities are still available for Blockbuster to reevaluate and implements new strategies. The suggested strategic options include: focusing closely on competitors while making it a goal to always stay ahead innovatively; adding more quality to the customers experience whether it be in store, online, or kiosk; finding efficient ways to drive prices even lower to attract quantity in rentals while focusing on cost leadership. Analysis and Evaluation The Media entertainment industry has changed drastically since Blockbuster was established in 1985. Blockbuster has come a long way with revenues of more than 5 billion in 2008 considering the vast changes in technology over the years. While keeping in consideration all of the threats that the Internet imposes, Blockbuster must continue to evolve with technology and if possible be a step ahead of their competitors. Although Blockbuster has established relationships and customer loyalty this is not a guarantee of what the future has in store. The emergence of new competing technologies is a great possibility within Blockbuster, specifically with their strategic alliance partners.

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