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: This lead to high levels of customer dissatisfaction. Customers routinely waited in line for new movie titles. Only to find they’d have to wait for another customer to return the DVD. In essence, it lost its credibility and customers. This is why Blockbuster went out of business. Customers were willing to pay for old and new movies but were unable to spend their money on movies they wanted to see. Another reason why Blockbuster went out of business was its obsession with late fees. Late fees accounted for more than 15% of Blockbuster’s revenue during the retailer’s heyday. When a customer returned a DVD late, they were hit with a substantial late fee. A standard late fee is $1-per-day that will be added for every movie title if it is late, for up to 10 days.