Blockbuster Entertainment: A SWOT Analysis
Blockbuster Entertainment is a leading provider of movie rental and video rental services. The company offers a wide range of movies, from the latest releases to classics and indie films, to its customers through its rental stores, online rental service, and downloadable content.
2. Company Overview
Blockbuster Entertainment was founded in 1985 and is headquartered in Los Angeles, California, USA. The company operates a chain of retail stores across the United States, as well as an online rental service and a downloadable content service. Blockbuster Entertainment has a presence in over 50 countries and territories around the world.
3. SWOT Analysis
3.1. Blockbuster Entertainment’s Collection
One of the strengths of Blockbuster Entertainment is its collection and it consists of the very best of movies from the leading production companies. The collection has something for everyone, from the latest releases to classics and indie films. This gives Blockbuster Entertainment an edge over its competitors who do not have such a wide variety of movies to offer their customers.
3. 1.2 Blockbuster Entertainment’s Technology
Another strength of Blockbuster Entertainment is its technology. The company has developed a proprietary technology that allows it to offer its customers a superior experience when they rent movies from the company. This technology includes a streaming service that allows customers to watch movies on their computer or mobile device without having to download them first, as well as an anti-piracy system that protects the rented movies from being copied or illegally distributed.
3. 2 Weaknesses
One of the weaknesses of Blockbuster Entertainment is its management team. The team has been accused of being slow to adapt to changes in the industry and has been slow to embrace new technologies, such as streaming and downloadable content. As a result, Blockbuster Entertainment has lagged behind its competitors in terms of innovation and customer experience.
3. 3 Opportunities
3.3.1 The Home Video Market
The home video market is estimated to be worth $40 billion globally and is growing at a rate of 5% per year. This presents a significant opportunity for Blockbuster Entertainment as the company can tap into this market with its collection of movies. Additionally, the growth of the home video market presents an opportunity for Blockbuster Entertainment to expand its business into new markets, such as selling or renting movies online or through digital platforms such as cable television or pay-per-view services.
3. 3.2 Expansion into International Markets
Another opportunity for Blockbuster Entertainment is to expand its business into new international markets. The company has a presence in over 50 countries and territories around the world, but its main focus is on the United States market. Expanding into new markets would allow Blockbuster Entertainment to grow its customer base and increase its revenues.
3. 4 Threats
3.4.1 The Download Revolution
One of the biggest threats to Blockbuster Entertainment is the download revolution. With the advent of high-speed internet connections, customers are increasingly turning to online movie rental services, such as Netflix, which offer a wider selection of movies to choose from and do not require customers to physically go to a store to rent or return movies. Additionally, customers can now download movies directly to their computer or mobile device, which makes online movie rental services even more convenient. As a result, Blockbuster Entertainment is facing stiff competition from these online movie rental services and is losing market share.
3. 4.2 Anti-Piracy Efforts
Another threat to Blockbuster Entertainment is the increasing anti-piracy efforts of the movie studios. Movie studios are releasing movies on home video formats, such as DVD and Blu-ray, later and later in an effort to discourage customers from renting or buying movies that have been illegally copied or downloaded. This is having a negative impact on Blockbuster Entertainment’s business as customers are waiting longer to rent or buy movies, which reduces the number of transactions and revenues generated by the company.