Blockbuster Case Study

I. Introduction
Blockbuster is a provider of home movie and video game rental service through video rental shops, DVD-by-mail, streaming, video on demand, and cinema theater. This United States of America (USA)-based company had more than 9,000 stores in 2004, with more than 2,000 stores overseas.
Blockbuster started with the retail film and video games in 1985. After the first few stores successfully seized customer demands, Blockbuster had been approached by many bigger companies and corporations. Since then, Blockbuster had undergone huge changes, from franchising to play into international markets. The company had penetrated markets in Australia, Brazil, Canada, Denmark, Ireland, Japan, Peru, and United Kingdom.
In this era of technology

The 1990s was the peak era of video games. In the 1970s, a man named Allen Acorn invented Pong, a two-dimensional tennis game which later led other inventors to video games. Nintendo from Japan drilled its way through game industry in 1974 by introducing Go. Since then, many others were rallying behind Nintendo entering the video games industries. Saga entered the market in 1989; Sony with its Playstation in 1994; and Microsoft brought forth Xbox to make appearance in 2004. Moreover, the rectangular video tapes with thick around 1,5cm named Video Home System (VHS) also play a significant role to the success of Blockbuster. Prior to the video games or video tapes, people used to go to the cinema to watch film. However, instead of opening cinema theater which would definitely cost a lot, the founder of Blockbuster, David Cook chose to use his abilities in managing database to bring the concept of rental movie. Beside it was the era of video tapes, people were also given options when do they want to watch. Video games carved its path by offering interactive games human can actually do in reality and it visualized in graphic on the

Perhaps Cook understood how working people trying to catch up with the movies they missed because additional shift, he steered Blockbuster to a store that operated until late than other video chains. Also, Cook occupied Blockbuster with more than 8,000 VHS tapes, made it three times larger than its nearby competitors. Not only Blockbuster lead in the diverse movies, it also did not follow its rivals by stacking the tapes behind counter. Cook display the tapes up at the racks as well provide the catalogue of movie list. The next year after Blockbuster opening, they had managed to join the Nasdaq under ticker “BBEC”. Cook also changed renamed it as “Blockbuster Entertainment”. By 1989, Blockbuster under the ticker “BV” joined trade on the New York Stock