Man 3025 Essay

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“Blockbuster Is Fighting for Survival” Bart Sztykowski Management 3025: Principles of Management, Section 791 5/23/2014 1.) How successful do you predict that Blockbuster’s recent moves (agreements with TiVo and major movie studios) will be? Please explain. Blockbuster is simply too late in its courageous attempts to salvage what is left of its foundation. As is stated in the article, the company used to have a major competitive advantage in terms of movie selection, where, “…customers could browse through thousands of titles…” (Hitt 106). Now, the entire scope of the market has changed and Blockbuster was much too slow to respond. The recent moves that it has made will surely generate profits, but not enough to sustain the company in the long run, seeing as there is nothing that differentiates Blockbuster’s services from that of its competitors. In order to fully gain lost market share back, the company would have to create some sort of highly innovative way of viewing or renting movies that none of its competitors has already thought of; It would have to be something that is rare, difficult to imitate, not easily substituted, and able to generate above-average returns. Unfortunately, at this point it looks as if none of this will come into fruition because Blockbuster has essentially decided to latch on to other companies, creating a sort of symbiotic relationship where the company feeds off of the success of its competitors. 2.) Can Blockbuster avoid bankruptcy and survive? Justify your response. As was previously stated, in order to fully re-establish itself in the market, Blockbuster would have to invent something that completely separates it from its competitors. It can also try to target segments of the market that do not particularly enjoy or have access to digital-on-demand technology, but even this may be a futile effort because these

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