Strategic Timing/Quality/Signaling
1985- Blockbuster Entertainment Corp founded by David Cook and owned/ franchised over 425 stores.
1987- Wayne Huizinga invested $18 million for majority position
1994- Acquisition of Viacom for $8.4 billion
1999- Expanded to 4,700+ stores in US
Large scale superstores
Clean, comfortable, family oriented atmosphere.
“America’s family Video Store”
“One World, One Word” replaced by “ Go Home Happy”
Revenue sharing- increase inventory/ copy depth to solve stock-out issues? Increased customer satisfaction
Large scale superstores
Clean, comfortable, family oriented atmosphere.
“America’s family Video Store”
“One World, One Word” replaced by “ Go Home Happy”
Revenue sharing- increase inventory/ copy depth to solve stock-out issues? Increased customer satisfaction
Video rental generated $8.1 billion in 1999
Top 10 national chains operated 8,600 stores (1/3 of the total)
Rental revenues of $3.9 billion (47% of video rental spending)
Market leader- Blockbuster with 4,790 outlets in 1999 and $2.4 billion rental revenues (30% of total)
Video rental generated $8.1 billion in 1999
Top 10 national chains operated 8,600 stores (1/3 of the total)
Rental revenues of $3.9 billion (47% of video rental spending)
Market leader- Blockbuster with 4,790 outlets in 1999 and $2.4 billion rental revenues (30% of total)
Strategic Timing/Quality/Signaling
1985- Blockbuster Entertainment Corp founded by David Cook and owned/ franchised over 425 stores.
1987- Wayne Huizinga invested $18 million for majority position
1994- Acquisition of Viacom for $8.4 billion
1999- Expanded to 4,700+ stores in US
Large scale superstores
Clean, comfortable, family ...