Title: Why Blockbuster Went Out of Business? Analysing its Pricing Model.
Headings: Why Blockbuster 🎦 Went Out of Business? An Analysis of its Business and Pricing Model
Why Blockbuster 🎦 Went Out of Business? An Analysis of its Business and Pricing Model
The standard analogue business model
Losing Credibility – One Reason Why Blockbuster Went Out of Business
Not understanding the customers’ needs – Another Reason Why Blockbuster Went Out of Business
Another reason for their eventual demise was their failure to lower prices across all top-selling categories (movies, snacks and beverages).
Blockbuster’s pricing and product strategy
How Netflix was born
What were the other reasons why Blockbuster went out of business?
Implications
Conclusion
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Content: Its main strategy was to open as many stores it could all over the country. That way it could gain a huge chunk of the market. This strategy did work for a period of time, but it also incurred huge operating costs. More stores meant more rental spaces and more people to hire. Also, it proved to be harder to keep track of revenues on each and every store. So Blockbuster introduced another plan, which was to acquire more new movie releases and regulate the old ones to the back of the store. That limited shelf space for the old titles; and the new titles were of limited supply. Losing Credibility – One Reason Why Blockbuster Went Out of Business
The mistake with this last business decision was that Blockbuster underestimated how much people wanted the old titles. It also frustrated people that the new titles were not readily available and they’d often leave without getting the titles they wanted.