Blockbuster's Innovation and Technology Analysis for Market Remergence

This case study provides an in-depth analysis of Blockbuster, the American movie provider, focusing on its potential re-emergence in the market through innovation and new technology. The analysis utilizes various models and theories, including PESTEL analysis, SWOT analysis, Porter’s Five Forces, and McKinsey’s 7S Framework, to evaluate Blockbuster's market position and identify strategic opportunities. The report highlights the impact of political, economic, social, and environmental factors, as well as the competitive landscape and internal capabilities. Ultimately, the study suggests that Blockbuster should focus on technological innovation, particularly by introducing online movie rental services, to regain its market presence and address the challenges posed by movie piracy and evolving consumer preferences. Desklib provides access to this and similar case studies to aid students in their academic pursuits.

INNOVATION AND NEW
TECHNOLOGY
Blockbuster Analysis

INTRODUCTION
 Blockbuster is an American movie provider
that offers variety of movies services and
these include movies products and games,,
rental shops, mails and movie streaming
services or within movie theatres.
 The report provides company analysis based
on different models and theories that have
been undertaken to help the company
remerge in the market.

BLOCKBUSTER ANALYSIS
PESTEL ANALYSIS
Further political factors especially issues of employment, safety, taxes and
regulations, political stability and tax guidelines that have impact on the
operation of the company.
 Economic factors such rate of internal unemployment and external policies, inflation and
decrease in the economic growth has impact on the company.
 Social factors such as rising awareness of consumers towards the green initiative that comes with
the adoption of digitization
 technological advancements such internet and digitalization of sector has affect the external
market conditions of Blockbuster

SWOT ANALYSIS
 Strength of the company lies on good control
over its prospective customers.
 The weakness of the company is based on
little or no control over the shipping logistics
of movies
 The market demand provide opportunities that can be
use by Blockbuster is innovative with most products
pricing during some seasons such as holidays
 The threat include movies piracy currently
presents an extremely critical concern and
this hinder the future growth process

PORTER’S FIVE FORCES
 New firms entering into movie market poses
high threat in the market.
 The bargaining power of customers in the market is high
as company offers customers chance to determines prices
 The threat from products substitute is low since there are
minimal substitutes for movies and games in the market
 The bargaining power of suppliers is low
within the movie market
 The rivalry threat in the movie market is high
as many players in market offers fierce
competition in the market

FURTHER ANALYSIS
 MCKINSEY’S 7S FRAMEWORK entails analysis of
structure, staff, style, skill, systems, strategy
and shared values
 Phases of innovation model involves various phases
that include Fluid phase, Transitional phase,
Specific phase
 The solution for remerge of Blockbuster
 Blockbuster has technological innovation
option for remerging the movies market
 The company can introduce movie rental
services especially on the online platform

REFERENCE
 Blockbuster CEO passed up chance to buy Netflix for
$50 .... Retrieved 2018, from
http://www.businessinsider.com/blockbuster-ceo-passed-
up-chance-to-buy-netflix-for-50-million-2015-7
 Blockbuster Inc. - The New York Times. Retrieved 2018,
from https://www.nytimes.com/topic/company/blockbuster-
inc
 Blockbuster still exists in a couple of places, but they ....
Retrieved 2018, from
http://www.businessinsider.com/blockbuster-still-exists-in-
a-couple-of-places-2017-4
 Jr., B., & Schacknow, P. (2018). Wall Street is set to open
higher after blockbuster earnings. CNBC. Retrieved 18
April 2018, from https://www.cnbc.com/2018/04/18/wall-
street-is-set-to-open-higher-after-blockbuster-
earnings.html