Sep
27
Blockbuster Busts
Posted by: douglasfeltham | September 27, 2010 | Leave a Comment
Recently in the economist there was article talking about how Blockbuster had too file for chapter 11 in the states. Their problem appears to be that they are losing market share to Netflix when it comes to people wanting to find obscure movies, and Redbox for mass market titles. I think that this shows the advantage that a company has when it focuses on one area or approach. Like with Ryan air which we studied in class one These other movie renters are able to beat Blockbuster because they focus on one business model. If Blockbuster tries to expand it’s catalog, this rises the price of business and makes it hard to compete with Redbox, while if they try to be more minimalist in their catalog and prices, they are hit by Netflix’s superior catalog. To make it worse either way they go, they can’t compete with the convenience of either ordering over the net and having it delivered, or picking it up when grocery shopping. By trying to get all of the consumers in the rental market, Blockbuster ends up getting none of them.