Hina Samad Naima Khan Zainab Ali Asghar Zobia Makna
INTRODUCTION
American-based provider of home movie and video game rental services, originally through video rental shops (both owned and franchised), later adding DVD-by-mail, streaming, video on demand and Cinema Theater.
INTRODUCTION
At its peak in 2004, Blockbuster had up to 60,000 employees and more than 9,000 stores.
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
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)
Mission Statement
"Our corporate mission is to provide our customers with the most convenient access to media entertainment, including movies and game entertainment delivered through multiple distribution channels such as our stores, by-mail, vending and kiosks, online and at home. We believe Blockbuster offers customers a value-priced entertainment experience, combining the broad depth of a specialty retailer with local neighborhood convenience."
Industry:
Home video and gaming industry Large number of buyers in relation to industry rivals Low or non-existent switching costs Industry products easily substituted
CASE STUDY
Principles of scientific management involves the one best way of doing a job.
Principles of Scientific Management
Arrangement and alignment. Availability of Online Website Packages. Stop Traditional practice of stocking. Yearly Membership. Trained employees.
Knowledge of OB help the companys supervisors to manage their employees. Organizational Behavior (OB) is a field of study and knowledge of human action.
Principles of OB
Flexible Time. Empowerment. Motivation. Leadership.
BLOCKBUSTER CULTURE
Robert Owens Late 1700s
Chester Bernard Early 930s
Early Advocates of OB
Hugo Munsterberg Early 1900s
Mary Parker Early 1900s
BLOCKBUSTER - SYSTEM
Environment
Organization
Transformation Process Collecting Data
Output Titles of Movies, Games and other facilities (online, mails etc)
Input Point of Sale
Feedback
Environment
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 transfer engine to re-allocate product between stores to meet customer demand Multi-channel customers had their online queues updated with their store rental activity. DVDs and powered the MOVIECLIQUETM application on a leading social networking website
Emphasis on Diversity
Valuing differences in age Ethnicity Gender Sexual orientation Education and work/lifestyles and also people with disabilities.
Organizational success in 21st century as diversity enables an organization to understand the environment better, be sensitive to cultural differences and be more creative by capitalizing on strengths of its diverse workforce
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 Blockbuster on Demand 2009: Blockbuster partners with NCR to install DVD kiosks to compete with Redbox.
MR. JIM KEYES
2010: Company closes hundreds of stores in order to cut costs and attempt to pay back its nearly $1 billion in debt. 2011/12: Blockbuster receives a winning bid from Dish Network for $320 million, and closes all stores in Canada 1985
Past: Penetration strategy
Differentiation Convenient location Wide selection of titles Customer database Increased efficiency
SWOT ANALYSIS
STRENGTHS: 1) Brand Familiarity 2) Offers movie & video game rentals 3) Located globally 4) No late fees 5) Can return delivered movies in store as well as via mail 6)More variety 7)Partnerships with Movie Studios
WEAKNESSES:
1) Weak, damaged brand 2) Unsuccessful 3) High operating expenses 4)Poor investor confidence 5)More expensive than red box.
OPPORTUNITY: 1) Store experience 2)Online Distribution 3)Lower prices 4)Partnership for online downloads 5)Blockbuster phone App. 6)Video game sales
THREATS: 1)On demand movies 2)Netflix 3)Internet 4)Movie theaters(3D) 5)Piracy
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
PLAY VIDEO
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 store as well as via mail 6) More variety
COMPETITION AND WAR
Netflix Vs Blockbuster Monthly pricing:
Netflix:
$7.99 (one DVD) $9.99 (one DVD or Blu-ray) $43.99 for eight DVDs ($52.99 for Blu-ray
Blockbuster:
$9.99 (one DVD, Blu-ray, or video game disc) $14.99 (two discs)
Availability
Netflix More than 100,000 movies TV shows on DVD and Bluray Blockbuster More than 100,000 movies and TV shows DVD and Blu-ray 3,000 video games.
Key Differences
Blockbuster: Unlimited online streaming mailed disc titles available 28 days before Netflix
Limitations
Netflix: no stores no games available Blockbuster: in store exchange
CONCLUSION
Tactics to Enhance Functioning Of Employees Tactics to capture customer flow Tactics to Enhance Business
Recommendations
Decrease debts and overhead costs Cost leadership strategy Expand into emerging markets Improve marketing strategy Games: an excellent source of revenue Process innovation: Focus on keeping up with changing technology Competing through licensing Strategy
QUESTIONS
