Blockbuster leadership and stratigic failures

They had the world at their feet, dominating the video rental market with thousands of outlets across the world. Then video streaming came along and it all fell apart. Netflix, the online subscription streaming service, now dominates the sector with more than 50 million subscribers. All that remains of Blockbuster is a few stores in Alaska, after the company declared bankruptcy in

Blockbuster leadership and stratigic failures

This month he briefly examined Blockbuster. But, just six years later it was bankrupt. I will explain how they could have built a market winning strategy. So what happened to Blockbuster? Amongst other issues, there are three elements on which I believe the company failed to focus that contributed to bankruptcy in However, the market was moving away from the high street.

Initially this happened through DVD mail order.

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Then as home broadband penetration-levels increased, the distribution of films and TV using streaming became possible. The physical stores, which they had grown out and invested in, suddenly became its biggest weakness. The market was changing, video streaming a new disruptive technology was being adopted, but Blockbuster failed to adopt the new skills and infrastructure needed for the changing competitive landscape.

It lacked customer focus It appears as though ultimately, Blockbuster, a brand loved by its customers, lost its way by failing to remain customer centred. I believe the company thought that it understood the customer; that having a physical store to visit was an attraction of using the Blockbuster service and that this had become part of the night out.

Whilst this may have been true in the past, the market was changing. Instead, Blockbuster refocused on retail.

Blockbuster leadership and stratigic failures

In doing so, it lost its focus on serving the customer and instead retrenched to offering what it knew, what had worked in the past, rather than what its customers wanted now and in the future. Inamidst declining revenues, the company recruited James W.

He introduced a new business strategy that included de-emphasizing the unprofitable Total Access online service, in favour of an in-store, retail-oriented model. Blockbuster needed a better long-term strategy What the leadership team at Blockbuster needed was a market forecast model.

This would have highlighted the scale of their folly and explained why continuing to invest in DVD rental stores was a mistake. Using this deep understanding of the changing market dynamics would have supported the creation of a new long-term direction for the business.

The market model might have had a structure that looks like this: A model would have allowed the future dynamics of consumer and then competitor behaviour to be explored and documented for each target country.

We see here, that the model can be drilled into and analysed. This creates a very detailed and rigorous analysis of the future competitive landscape, which would have clearly shown the declining consumer demand for physical DVD rental.Ten Pitfalls of Strategic Failure; View (active tab) PDF; Strategy - BLOG.

Video rental chain Blockbuster is an example of a business that failed to move with the times and saw its business model collapse. The message here is simple - be ruthlessly honest and receptive to new ideas / models or you may wake up one day and find your business.

Blockbuster leadership and stratigic failures

Whole Foods Market offers more than 1, items in four lines of private-label products (such as the premium Whole Foods and a line of organic products for children, Whole Kids).

Task Environment There seems to be limited amount of forces in the health food industry that drives competition. Whole Foods Market offers more than 1, items in four lines of private-label products (such as the premium Whole Foods and a line of organic products for children, Whole Kids). Task Environment There seems to be limited amount of forces in the health food industry that drives competition.

the pay of the paparazzi, receiving money from them in exchange for' providing details of guest movements, enabling the photographers to be in position to snatch pictures of the celebrities.'(53) Richard Tomlinson believed that he was an MI6 informer paid to spy on Diana and Dodi.

The stronger our market leadership, the more powerful our economic model. Market leadership can translate directly to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital/5(79).

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