Blockbuster Entertainment: A SWOT Analysis

1. Introduction

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 Strengths
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
3.2.1 Management

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.


A SWOT analysis is a tool that businesses use to assess their strengths, weaknesses, opportunities, and threats. It is important for businesses to conduct a SWOT analysis because it helps them to identify areas where they can improve and also provides insights into how they can capitalize on their strengths and overcome their weaknesses.

A SWOT analysis of Blockbuster Entertainment would reveal that its strengths include its large customer base, its wide selection of movies and games, and its convenient locations. Its weaknesses include its high prices, its lack of online presence, and the competition it faces from other rental companies such as Netflix.

Some of the key internal factors that Blockbuster should be aware of are its high prices, lack of online presence, and competition from other rental companies.

Some of the key external factors that Blockbuster should be aware of are changes in technology (such as the rise of streaming services), changes in consumer tastes (such as the preference for watching movies at home), and economic conditions (such as recessions).

A SWOT analysis can help Blockbuster to develop strategies to overcome its weaknesses and capitalize on its strengths. For example, Blockbuster could focus on improving its online presence in order to better compete with Netflix, or it could offer discounts or promotions in order to attract more customers during periods of economic downturns.