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.
At the height of the movie rental industry revenues hit $11.6 billion (“Video Tape Rental” 2012). Blockbuster Video was the largest video rental company in the US and around the world until it was bought by Dish Network in 2011 (Sakthi Prasad 2011). The movie rental industry was attacked by digital rentals since pay per view emerged, but it wasn’t until digital rentals online became popular that any real dent was made in the video rental revenues. Netflix emerged with a new concept of renting DVD’s via mail order with no late fees and as long as a customer desired to have the DVD. Their business concept included a subscription with unlimited rentals at one movie at a time.
The convenience stores and supermarkets are the dominant off-premise retail channels for energy beverages. 2) Does your characterization bode well for a new energy beverage brand introduction generally and for DPSG, in particular? It is very hard for new energy beverage brand to survive as one of the best beside the five most popular energy beverage brands: Red Bull, Hansen Natural Corporation, Pepsi-Cola, Rockstar, Inc and Coca-Cola. Those brands are well known all over the world and they invested a lot of time and money to be recognized as one of top five brands. The new beverage brand and generally the DPSG will need invest much more money than they
Rivalry Among Existing Firms (SIC 7812) is low. Iwerks is the only competitor for large format films and their main focus is on ride simulation; (SIC 3861) is low as there is no direct competition for development of large format projection systems. While the traditional film industry is highly competitive with many competing firms, the same cannot be said about the large format/3D film industry. Here the threat of new entrants is low, buyer power is medium/high, supplier power is low, threat of substitutes is medium and rivalry among firms is low. Opportunities: a global industry, Hollywood film industry and 3D movies, and educational entertainment increasing in popularity.
The industry wide capacity is growing much faster than the demand growth. Three main causes to the isolation of IT Department Strategy to the whole business plan are analyzed as follows. To begin with, the matter of money counted for the most obvious excuse for the blackout of previously on-going Leapfrog Project. Actually, the problem is that RCCL did not figure out how best to spend its budgets, not just to meet growing demand but to boost repeat bookings. Further more, the decision of shelving the whole Leapfrog plan indicated that RCCL lost its
Bloomingdales is a higher end store that sells high quality products at a high price. They are currently losing many customers because the economy will not move out of the stagnation period. Right now the customers need to be saving their money in case they need it later to pay bills rather than spending it on clothing. Many consumers are starting to shop at stores like Macy’s or Kohl’s where they are offered almost the same quality products at lower prices. Some of Bloomingdales biggest competitors are Neiman Marcus, Saks Fifth Avenue, Bergdorf Goodman, Barneys New York, Lord & Taylor and Nordstrom.
BLOCKBUSTER WRITTEN ASSIGNMENT #1 Submitted to: Ms. Violet Christopher Submitted by: Christopher Allen Peek March 10, 2011 MGT 101 ANTELOPE VALLEY COLLEGE Not too long ago Blockbuster was on top of the world, they were the golden age for the video store. They had the movie rental business in the palm of their hand. But after a series of mistakes and unwillingness to see were the future was taking them now threatens to bankrupt them completely. Blockbuster didn’t have a good Business model or strategy. They didn’t plan or analyze what the general environment was doing and were it could take them.
Tight appropriability regime- the industry hasn’t changed much since the development of the camera, the market was slowly developed and Kodak with it “Kodak Yellow” brand monopolized the market. The industry was based on physical assets like cameras and films that could well protected by patents (chemicals and mechanics), Kodak invested heavily on IP and owned many patents. Kodak put all the building block correctly, and just as Teece projected Kodak was very successful and made huge profits from capitalizing it IP- grossing 16 B$ revenues in 1996 and 2.5 in profits. Kodak’s management lodged in one company town, cherishing a slow adaptive, “perfect products” and complacent corporate culture (due to its dominant position). As long as the industry’s pace was slow the company bloomed, but once the industry started to raise its pace and the world moved to the digital area, Kodak began its sinking.
Kodak both invented and successfully marketed professional and consumer digital cameras. It held the professional market alone in the 1990s and peaked at 29% of the US consumer market in 1999 (12). However its equipment failed to match products from more aggressive digital camera companies from Japan (5) and sales fell. Furthermore, camera phones have been rising rapidly in the picture taking market at the cost of point and shoot cameras. Kodak eventually exited the digital camera market in 2012 (7).
Prior to polices established by Law of Commerce Henkel Iberica participated in aggressive pricing to increase market share. The consequences of this were a negative effect on margins, contribution margins, and profits on sales. To contend with its competitors, Henkel invested in promotions and additional product mix to increase sales, but due to lack of accuracy in long range forecast it was often left with either over stock that is difficult to reallocate or loss of sales due to out of stock products which eventually led to a decrease of net earnings in sales year before. Accurately forecasting demand is the key to every strategic, tactical, and operational decision designed to keep our business competitive. Obviously it is evident that Henkel Iberica current process isn’t working due to challenges of forecast exactness and demand variability for all the products it offers.