Blockbuster video
MGT 201 CASE ANALYSIS
A New Blockbuster Image
POINT OF VIEW
The group will take the point of view of the Chairman of Blockbuster, H. Wayne Huizenga. As Chairman, he is director, decision maker, leader, manager and executor of the company and thus, in the position to solve and decide upon the dilemmas faced by Blockbuster regarding the issues on the diversification of the company.
MAJOR PROBLEM
From 1985 to 1992, Blockbuster has managed to become a video-rental giant. But by 1993, Blockbuster through its Chairman, H. Wayne Huizenga was seeking a new image, that of a multimedia company. Steps were taken towards this goal including sponsorships of concert tours, music retailing, television and film production and operating indoor children’s play centers. These diversification strategies, however, did not escape from several criticisms and by the fall of 1993, Chairman Huizenga had enough reasons to rethink of what he wanted for the company.
The myriad of difficult decisions concerning Blockbuster’s future can be traced to the dramatic changes in the company’s strategic context. This and Huizenga’s hurried and scattered approach to diversification had put the company into danger.
How should Chairman Huizenga address the criticisms that arise from his abrupt and scattered decisions on the diversification of Blockbuster?
CASE FACTS
Three factors that make up strategic context which could have helped Huizenga understand the opportunities and constraints set before the company are: (1) history of Blockbuster, (2) the environment in which Blockbuster operates, and (3) the resources available to Blockbuster. Once the strategic context is understood, deliberate choices can be made, critical tasks defined and alignment checked between those critical tasks and the company’s interests.
History
The first Blockbuster store was opened in October 1985 in Dallas, Texas by its founder, David Cook. His experience with managing huge databases helped him in
A New Blockbuster Image
POINT OF VIEW
The group will take the point of view of the Chairman of Blockbuster, H. Wayne Huizenga. As Chairman, he is director, decision maker, leader, manager and executor of the company and thus, in the position to solve and decide upon the dilemmas faced by Blockbuster regarding the issues on the diversification of the company.
MAJOR PROBLEM
From 1985 to 1992, Blockbuster has managed to become a video-rental giant. But by 1993, Blockbuster through its Chairman, H. Wayne Huizenga was seeking a new image, that of a multimedia company. Steps were taken towards this goal including sponsorships of concert tours, music retailing, television and film production and operating indoor children’s play centers. These diversification strategies, however, did not escape from several criticisms and by the fall of 1993, Chairman Huizenga had enough reasons to rethink of what he wanted for the company.
The myriad of difficult decisions concerning Blockbuster’s future can be traced to the dramatic changes in the company’s strategic context. This and Huizenga’s hurried and scattered approach to diversification had put the company into danger.
How should Chairman Huizenga address the criticisms that arise from his abrupt and scattered decisions on the diversification of Blockbuster?
CASE FACTS
Three factors that make up strategic context which could have helped Huizenga understand the opportunities and constraints set before the company are: (1) history of Blockbuster, (2) the environment in which Blockbuster operates, and (3) the resources available to Blockbuster. Once the strategic context is understood, deliberate choices can be made, critical tasks defined and alignment checked between those critical tasks and the company’s interests.
History
The first Blockbuster store was opened in October 1985 in Dallas, Texas by its founder, David Cook. His experience with managing huge databases helped him in
References: 1. History of Blockbuster 2. McMarketing Principle 3. Poggi, Jeanine. 2010. Blockbuster 's Rise and Fall: The Long, Rewinding Road. Retrieved on http://www.thestreet.com/story/10867574/1/the-rise-and-fall-of-blockbuster-the-long-rewinding-road.html