blockbuster - final presentation theme and format
TRANSCRIPT
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Hina SamadNaima Khan
Zainab Ali AsgharZobia Makna
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INTRODUCTION
American-based provider of homemovie and video game rental services,originally through video rental shops
(both owned and franchised), lateradding DVD-by-mail, streaming, videoon demand and Cinema Theater.
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INTRODUCTION
At its peak in 2004, Blockbuster had up to60,000 employees and more than 9,000stores.
DAVID COOK - FOUNDER 1985-1987 WAYNE HUIZENGA - CEO 1987-1994
STEVEN BERRARD - CEO 1994-1996
BILL FIELDS - CEO 1996-1997
JOHN ANTIOCO: CEO 1997-2007
JIM KEYES - CEO 2007 Onwards
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Slogans
"Wow! What a Difference!" (1990s) "Make It a Blockbuster Night" (1990s)
"Bringing Entertainment Home" (1990s)
"Go Home Happy" (1990s)
"Bring The Good Times Home" (1990s)
"The New Blockbuster" (2005)
"America's No. 1 Home Entertainment store"(current)
"There's more inside" (current)
"The Movie Store at Your Door" (current,Blockbuster Online)
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Mission Statement
"Our corporate mission is to provide ourcustomers with the most convenientaccess to media entertainment,including movies and game
entertainment delivered throughmultiple distribution channels such asour stores, by-mail, vending andkiosks, online and at home. We
believe Blockbuster offers customers avalue-priced entertainmentexperience, combining the broaddepth of a specialty retailer with local
neighborhood convenience."
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Industry:
Home video and gaming industryLarge number of buyers in relation toindustry rivalsLow or non-existent switching costs
Industry products easily substituted
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Principles of scientific managementinvolves the one best way ofdoing a job.
CASE STUDY
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Arrangement and alignment.
Availability of Online Website
Packages.
Stop Traditional practice ofstocking.
Yearly Membership.
Trained employees.
Principles of ScientificManagement
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Flexible Time.
Empowerment.
Motivation.
Leadership.
Principles of OB
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BLOCKBUSTER CULTURE
EarlyAdvocates
of OB
RobertOwens
Late 1700s
HugoMunsterberg
Early 1900s
Mary ParkerEarly
1900s
ChesterBernard
Early 930s
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BLOCKBUSTER - SYSTEM
Input Point ofSale
TransformationProcess
Collecting Data
Output Titles ofMovies, Games
and otherfacilities (online,
mails etc)
Organization
Feedback
Environment
Environment
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Creating Culture Technology initiatives to strengthen their
relationship with customers Enabling their customers to transact
seamlessly with any Blockbuster location
They also created an inventory transferengine to re-allocate product betweenstores to meet customer demand
Multi-channel customers had their on-
line queues updated with their storerental activity.
DVDs and powered the MOVIECLIQUETMapplication on a leading socialnetworking website
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Emphasis on Diversity
Valuing differences in age Ethnicity
Gender
Sexual orientation
Education and work/lifestyles and alsopeople with disabilities.
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Organizational success in 21stcentury as diversity enables anorganization to understand the
environment better, be sensitive tocultural differences and be morecreative by capitalizing on strengthsof its diverse workforce
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MR. JIM KEYES
JIM KEYES - CEO 2007 - 2013 2007: Sold all Australian stores and Brazilian
stores
2008: Blockbuster attempts to buyout Circut City,but withdrew offer, and launches Blockbusteron Demand
2009: Blockbuster partners with NCR to install
DVD kiosks to compete with Redbox.
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2010: Company closes hundreds of stores in order
to cut costs and attempt to pay back its nearly $1billion in debt.
2011/12: Blockbuster receives a winning bid from
Dish Network for $320 million, and closes allstores in Canada 1985
MR. JIM KEYES
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Past: Penetration strategy
DifferentiationConvenient locationWide selection of titlesCustomer database
Increased efficiency
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SWOT ANALYSIS
STRENGTHS:
1) Brand Familiarity2) Offers movie & video game rentals
3) Located globally
4) No late fees
5) Can return delivered movies in storeas well as via mail
6)More variety7)Partnerships with Movie Studios
WEAKNESSES:
1) Weak, damaged brand2) Unsuccessful3) High operating expenses4)Poor investor confidence5)More expensive than red box.
OPPORTUNITY:
1) Store experience2)Online Distribution3)Lower prices4)Partnership for online downloads5)Blockbuster phone App.6)Video game sales
THREATS:
1)On demand movies2)Netflix3)Internet4)Movie theaters(3D)5)Piracy
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Current Strategy Penetration with cost-leadership
28 day rule
Advertising through our website
Social networking
Telephone In-store promotions
Mail and E-mail
Application for smart phones and tablet Personal selling
Word of mouth
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PLAY VIDEO
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Customer Satisfaction
1) User Friendly technique
2) Offers movie & video game rentals
3) Located globally
4) No late fees charged
5) Can return delivered movies in storeas well as via mail
6) More variety
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COMPETITION AND WAR
Netflix Vs BlockbusterMonthly pricing:
Netflix: Blockbuster:
$7.99(one DVD)$9.99(one DVD or Blu-ray)$43.99for eight DVDs
($52.99
for Blu-ray
$9.99(one DVD, Blu-ray, orvideo game disc)$14.99(two discs)
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Availability
Netflix Blockbuster
More than 100,000movies TV shows
on DVD and Blu-ray
More than 100,000movies and TV
shows DVD andBlu-ray 3,000 videogames.
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Key Differences
Blockbuster: Unlimited onlinestreaming mailed disc titlesavailable 28 days before Netflix
Limitations
Netflix: no stores no games
available
Blockbuster: in store exchange
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CONCLUSION
Tactics to Enhance Functioning OfEmployees
Tactics to capture customer flow
Tactics to Enhance Business
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Recommendations
Decrease debts and overhead costsCost leadership strategy
Expand into emerging markets
Improve marketing strategyGames: an excellent source of revenue
Process innovation: Focus on keeping up withchanging technology
Competing through licensing Strategy
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QUESTIONS