The company I chose was Blockbuster, Blockbuster was founded on oct. 19, 1985 by Wayne Huizenga and David Cook. There fist main head quarters was in Dallas, Texas where David got his idea from his wife Sandy who thought of the idea of a video rental store after his oil market collapsed in 1985. At this time VHS was booming so he decided to open a mega store that had a large inventory for customers to choose from. The store had a problem with stolen inventory so they managed to fix the problem by stocking empty movie cases on the shelves and exchanges would be made at the counter. In its early years Blockbuster had a steady stream of customers daily, they had about 9000 stores at one point all around the world but today only a few remain. Todays locations are seemed to be only found in rural areas, you can even find Blockbuster in Alaska. High competition is one of the main reasons to why the business failed, with changing trends, and new companies like Netflix, online movie renting was a faster more easy way for the consumer to get faster movie service than Blockbuster could provide. In 2004 Blockbuster created a mail rental service in hopes to keep the …show more content…
For example in 1990 they left smaller shops unable to certain movie titles and Blockbuster was able to wholesale items to other stores if they really wanted that specific movie. The company tried many ways to promote their business they even started to advertise on bags, accessories, coupons and even clothes hangers in 1998. Blockbuster tried to arrange a buyout worth $1 billion in 2008, but the electronics franchise went bankrupt the following year. Blockbuster ended up losing a billion all by itself in 2010, forcing Blockbuster into bankruptcy. Many of the stores locations closed but you can still visit a Blockbuster today. In addition to loosing the stores, many people were attracted to the empty buildings and were sold to investors