Case 13 - MGT429 Case 13: Blockbusters Challenges in the...

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MGT429 Case 13: Blockbuster’s Challenges in the Video Rental Industry in 2007 Blockbuster managed to grow rapidly through opening new stores quickly, developing a franchise program, and acquiring competitors to increase the number of stores. In the early 1990s, Blockbuster changed its strategy for store location to focus on smaller markets with no less than 20,000 people. They also set up their franchising program, which allowed them to open a number of new stores very quickly without incurring debt to the company. As well, Blockbuster acquired many established video rental chains in certain regions to gain market share. All of these actions led Blockbuster to operate over 2,500 stores nationwide by 1993. Since Blockbuster’s success in the early 1990s, the video rental industry has changed significantly in the 21 st century due to new technology. For example, DVDs and Blu-Ray Discs have replaced VHS cassette tapes and, most importantly, the internet, PPV and On-Demand TV packages, and touch-screen kiosks have changed the way movies
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This note was uploaded on 04/01/2011 for the course MGT 429 taught by Professor Lui during the Winter '10 term at Saginaw Valley.

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Case 13 - MGT429 Case 13: Blockbusters Challenges in the...

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