STRATEGIC MANAGEMENT ANALYSIS

Strategic Management Analysis

Strategic Management Analysis

Introduction

Blockbuster is a USA based organization that deals in selling music, movies and games on rent. The company has been able to become one of the leading suppliers in the video and rental game DVD stores. Since Blockbuster has come into existence it has been able to grow its business financially and operationally. During the journey of Blockbuster till today it has also made several joint ventures in order to develop its strategic position in many parts of the world. A good competitive strategy has enabled Blockbuster to become a dominant leader in this industry and thus it has expanded its rental DVD gaming business in not only United States of America but in many other parts of the world. The organization has been able to use several strategic management theories in order to diversify especially in the gaming entertainment market. Thus a detailed research report will try to find out that what other strategic management theories Blockbuster needs to apply in order to retain its leadership position and respond positively to the changes occurring in the external environment. A critical analysis will help in concluding that either application of different strategic theories will help Blockbuster in overcoming the challenges it is currently facing while operating in the High Streets.

Discussion

The video rental industry in UK today is divided into two kinds of players: one is the traditional players and second is the mail order retailers. The traditional players operate through running their retail stores in different streets of UK. On the other hand mail order retailers have been able to give a lot of competition to the traditional operators as they are able to use the information technology in order to sell their products in different parts of UK. The modern retailers or mail orders are able to achieve their sales targets with incurring a small amount of cost in their operations. This is one the reasons that Blockbuster like many other retail stores on the High Street are having difficulty in maintain their leadership position in the market.

Similarly organizations that are currently operating in different parts of the world have to remain informed regarding the changes occurring in the external environment. Organizations that are unable to develop a strong control on the external environment are unable to operate in their respective industries. Apart from keeping informed the organizations also need to adapt a flexible working style that could help in easily implementing the changes occurring in the external environment. Blockbuster like many other retail stores in the High Streets have been affected by the changes in the external environment and thus it has made it difficult for the company to remain ahead of its competitors. Blockbuster due to inability of changing according to the external environment has led to the loss of leadership position in the video rental industry in UK. Since the year, 2000 the whole world has changed and the way of running has also changed from manual to ...