BLOCKBUSTER

Blockbuster Going Out of Business

Blockbuster Going Out of Business

Introduction

Established in 1985, Blockbuster is a large organization with over 8,000 locations globally and offers a full range of products including online rentals, DVD and VHS in store rentals, games, gift and membership certificates as well as low cost movie products such as previously viewed movies and games. Blockbuster offers a variety of membership packages that address all lifestyle needs called BLOCKBUSTER Total Access Premium, BLOCKBUSTER Total Access, and BLOCKBUSTER By Mail.

In addition to their products and services, Blockbuster believes in their social responsibility and is a contributor to the Boys & Girls Clubs of America as well as the Children's Miracle Network. In addition they have been recognized by minority groups as one of the top 100 companies providing opportunities of employment to Black and Hispanic communities. Amongst the organizations they support are; NAACP, LULAC, GLAAD and the National Urban League. With a leadership position in the entertainment industry, Blockbuster has the opportunity to capitalize on their popularity and reputation for high quality products and services and is committed to continual improvement as the movie rental industry continues to evolve to higher quality goods.

Discussion

Key issues facing Blockbuster's online line products are the same as the issues faced by its competitors. Online rental services are intended to be easy, convenient and flexible to the end users life styles. Some issues that arise as a result of the online rental process is availability of movies online, time delays related to shipping, accessibility for individuals who do not own computers and variety in products available and competing with cable rentals through On Demand or Pay Per View services.

Addressing these customer needs in the most efficient way will differentiate them from the rest of the online rental options. On July 26 th of this year, Blockbuster announced a new, low cost membership package as low as $4.99 per month for online movie and video game rentals. (http://www.blockbuster.com/corporate/newReleases). "We want to give consumers the most convenient access to media entertainment, whether that's through our stores or by mail, and are dedicated to doing that with flexible plans and pricing." aid Jim Keyes, Blockbuster Chairman and CEO.

As one can see, Blockbuster is committed to providing all their customers with the flexibility to choose membership options that suit them best. In addition, from personal experience, Blockbuster could address the inconvenience associated with only being able to return videos to the store they were first rented from. Oftentimes, there may be a need to return a film at a different location and doing so even accidentally could cost the customer at least the value of the movie if not additional costs.

Key issues that need to be addressed through marketing concepts are services from their main competitors Netflix and On Demand, shipping delays and selection availability for new releases. From our reading, Marketing, 8 th Edition, marketing concepts that apply are ethics and social responsibility, developing new products and services and reaching global ...