Synopsis of Blockbuster - Copy - STRA 6232 Synopsis of...

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STRA 6232 - Synopsis of Blockbuster Blockbuster is an outstanding example of a firm that succeeded by building a formidable competitive advantage in the growth and shakeout stages of its industry, only to falter and ultimately fail as technology-driven substitutes emerged in the late stage of industry maturity. The company developed, under Huizenga, a strong dynamic growth cycle based on improving customer value and lowering costs. As the industry grew, thanks in part to the drop in VCR and videotape prices (based on an improved learning curve and scale economies in production), Blockbuster invested in the following value drivers: location, breadth of titles, depth of titles, brand and reputation, store atmosphere and design, and perhaps the presence of ancillary products (candy, etc.) in the stores. As for costs, Blockbuster achieved significant economies of scale in purchasing DVD’s through its own agreement with the studios and in distribution through its facility in McKinney. The high value and lower costs created a shakeout by forcing
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  • Winter '15
  • Blockbuster Inc., Blu-ray Disc, new content medium

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