Economic and Financial Management: Blockbuster's UK Market Failure

This report analyzes the economic and financial factors that led to the failure of Blockbuster LLC, focusing on its UK market performance. It examines microeconomic factors like consumer demand, technical efficiency, and pricing, as well as macroeconomic aspects including demographic shifts, economic environment, and technological advancements. The study utilizes PESTLE and SWOT analyses to understand the external threats and internal strengths/weaknesses. The report highlights the impact of online streaming services like Netflix, changing consumer preferences, and technological advancements on Blockbuster's market share and financial performance. The IS-LM and supply-demand theories are employed to illustrate the economic principles affecting the company's downfall. The analysis concludes with recommendations for improving the company's innovation strategy and adaptation to market changes. The study emphasizes the importance of stable price structures and technological advancement in the face of competition. The report provides a comprehensive overview of Blockbuster's decline in the UK market.