Solved: Hi There , I am trying to solve the below questions related to – Blockbuster, Inc

1) The critical strategic management and the competitive issues that faces this company include poor leadership, and poor planning. The company was initially doing perfect and grew considerably with its video rental business. But later, it grew over-confident with its success and future, it forayed into different domains, which was the starting step for its downfall.

With the advent of new technologies and rapid advancements in the electronic media, Blockbuster took a wrong step in taking up additional business procedures, which led to additional financial burdens and huge delays in delivering to its customers. This has also affected the service they provided their customers and ultimately customers began serching alternatives (like Netflix) and this has completely brought down the Blockbuster’s revenues and business. Blockbuster has been in an industry which was constantly under transition. And company hasn’t been able to keep up with the change.

2) Blockbuster has changed its strategy. It improvised on its current processes, made sure that all its customers are served well. It has launched streaming services, which subsequently led to changes in its business models. It made biggest changes and gained a prominant role in the market when compared to its previous model. Its current model includes, partnerships, changing the cost structure, evaluating key resources, changes in key activities, improving customer relationships, increasing customer segments, have undergone a major change in its present model. All these changes had led to company’s success in the immediate future.

3) The elements of Blockbuster strategy that is relevant to current conditions are :

1. Value Preposition
2. Key partnerships
3. Key activities
4. Key resources
5. Customer relationships
6. Customer segments
7. Cost structure
8. Revenue models
9. Streaming & Channels