Academic Work

Introduction

            A lot of time has passed since the case study on Blockbuster, and the corporation is facing many of the challenges presented by the case as well as a whole set of new ones.  The past twelve years have also brought about new opportunities and markets as well. 

Among the many things that have changed besides the external challenges and opportunities, are things such as expansion, sources of revenue, and the industry environment as a whole.  Movie production, distribution, technology, and nervous investors are changing the industry dramatically and are causing Blockbuster to adapt quickly.  Also addressed are Blockbusters strategic alliance with Philips, the Dutch electronics giant and other new undertakings.

External Challenges and Opportunities

            Blockbuster Entertainment Corporation is an adaptive company that sees opportunity and is aware of the challenges.  Blockbuster must be aware of upcoming companies that offer the same services such as Netflix Inc., Hollywood Video and Movie Gallery.

Blockbuster has seized the opportunity to expand the products from movies to new movies and video games.  Video games make up a major part of Blockbuster’s products.  Blockbuster is expanding its presence in the console games and games trading market with the acquisition of American Satellite and Video Inc.  American Satellite operates Rhino Video Games which is a games retail chain.  Rhino Video buys, sells, and trades video games.  Rhino has 40 retail stores in the Southeast, including Florida, Alabama, Tennessee, Georgia, North Carolina and South Carolina (“Blockbuster Acquires Video Game Retailer”).  This acquisition will allow Blockbuster to expand its video game market share.  

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