abhishreshthaa

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SWOT ANALYSIS ON Blockbuster Inc : Blockbuster Inc. is an American-based chain of VHS, DVD, Blu-ray, and video game rental stores currently under Chapter 11 bankruptcy. As of January 3, 2010, there were over 5000 Blockbuster stores in the U.S. and 17 countries worldwide. It is headquartered in the Renaissance Tower in Downtown Dallas, Texas.[1] Because of competition from other video rental companies like Netflix, Blockbuster has seen significant revenue losses. The company filed for bankruptcy on September 23, 2010.

Strengths

* Lead market share of online rentals
* Low fixed costs
* Worlds largest selection of DVDs
* Fastest delivery time of any online DVD rental company with over 35 DCs
* Service: over 90% of DVD's are received by customers within one day of ordering
* Strong website (shopability, navigation, reviews)

Weaknesses

* Can't control most important expense: shipping expenses
* Older demographic has a hard time understanding their concept
* Watch Instantly feature only allows a small selection of DVD's
* Distribution time
* presence in only DVD segment

Opportunities

* Pricing segmentation (i.e., different plans)
* Online distribution
* Other types of rentals (Video games, educational, institutional, etc)
* Internationalization
* Expanding to Video Game rental

Threats
  • Rising stamp costs
  • Other larger retailers launching into similar space (i.e., Wal-Mart)
  • Online digital distribution (iTunes, Napster)
  • Redbox
  • Blockbuster allowing the rental of games in addition to movies
  • Like most brick-and-mortar rental businesses, Netflix often has
    trouble providing enough copies of new, popular movies.
 
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Swot analysis consists of 4 parts:Strength, weakness, opportunity and threat.Company cannot flourish and reach the altitude which is desired. Swot analysis is ignored by myriads of MNC but, now they have understand the difference in their sales and directly get dragged from the competition. Blockbuster was recently stable in its sale but they kept on improvising their marketing as well as advertising plans and it seems like working for them.
 
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