I am including this case as it contains background information concerning Blockbuster from its inception through 2006. This case details the history of Blockbuster, the massive video rental chain, noting in particular the points along the way where BB changed its strategy. It offers wide latitude for practicing many of the analytical tools presented here
After years of successful growth, Blockbuster, the world's largest video rental chain, is gearing up for change amid a potential sell-off by its parent company, Viacom. Video and DBD rental sales have begun to flatten and new technology, including digital movies on demand, threatens Blockbuster's original core business. To ensure growth, it needs a new strategy.
1. How aggressively should Blockbuster move into selling video game players, games, and accessories versus its past focus on rentals? Why do you think it was slow to enter the DVD sales market?
2. Has the Blockbuster concept lost its novelty in the U.S. market? Can a subscription strategy help revive it?
3. Should Blockbuster push harder into international markets, where digital-on-demand technology is not yet available?