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Questions to consider in your Blockbuster case analysis

1. Perform an analysis to understand the general environment facing Blockbuster. In other words
how will Blockbuster be affected by external forces?
2. Use Porters Five Forces Model to analyze the mail rental and video-on-demand industries in the
US. Given your analysis determine if these industries are attractive or unattractive.
3. Entering the video-on-demand business requires Blockbuster to shift its corporate strategy and
compete in a new space. Discuss this shift and the key challenges associated with it.
4. Who are Blockbusters main competitors and how does Blockbuster measure up against these
competitors? (It may be helpful to chart competitors and product offerings) Also ask your selves
what advantages does Blockbuster have and what advantages do their competitors hold?
5. What are the main capabilities of Blockbuster and does Blockbuster have a core competence?
6. Create a SWOT analysis to understand Blockbusters strengths and weaknesses. Do you believe
Blockbuster has a sustainable competitive advantage in the mail rental and onon-demand
industries? If so what is it and what is the source? Furthermore ask yourselves about
Blockbusters evolution and current business strategy and whether it will pose a problem going
7. What is Blockbusters business level strategy? Is the strategy appropriate to offset the forces in
the industry? Discuss how Blockbuster has attempted to overcome obstacles posed by being a
late player in a rapidly changing marketplace?
8. What changes do you recommend and what challenges do you foresee? Based on your analysis,
what is you strategic plan for this organization? In other words what strategy do you
recommend and why?
Note: Most of the material, concepts and models required for analysis are found in chapters 3 and
5, 6 and 7 in the 9

Presentation Outline:
1. Title
2. Introduction
3. Display Discussion Questions
4. Strategic Analysis
o Intro to External Analysis
5. QUESTION 1 General Environmental Analysis [STEEP]
o Social/Demographic
o Economic
o Technological
o Environmental Geographic
o Political/Legal/Governmental
6. QUESTION 1 General Environmental Analysis [STEEP]
o Results: Implications from STEEP
7. QUESTION 2 Industry: Porters Five Forces
o Threat of New Entrants
o Supplier Power
o Buyer Power
o Threat of Substitutes
o Intensity of Rivalry
8. QUESTION 2 Is it attractive or unattractive?
o Results: Porters Five Forces
9. QUESTION 3 Shift in business strategy
o Discuss competition and shift in blockbuster
o Challenges
10. QUESTION 4 - Competitor Analysis
o Blockbuster vs:
o Netflix Mail Rental & VoD
o Redbox - Other
o Apple - VoD
o CinemaNow - VoD
o Walmart - VoD
o Vudu VoD
11. Strategic Analysis
o Intro to Internal Analysis