Blockbuster Leader in the Retail Research Proposal

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Blockbuster operates over 7800 stores in 22 countries (2007 Form 10-K). This network forms the basis for delivery of DVDs and video games in both rental and retail formats. The rental market has experienced limited growth in recent years, whereas the retail format has given Blockbuster more robust growth. The second component of the retail mix is the mail-delivery system. Customers order from the Internet, but the content is delivered in hard format in the mail. This channel is modeled after strong competitor Netflix. Blockbuster is working to build their roster of titles for this format and in the past year has focused on adding video game titles.

The third component of the retail mix is online content delivery.

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This is an emerging channel for Blockbuster, and they are working with technology partners to build out their capabilities with respect to digital They also purchased Movielink to build out their content for digital delivery (2007 Form 10-K). The fourth channel is comprised of ancillary channels such as kiosks and vending machines. This is another emerging channel for Blockbuster and they have taken steps to enhance their capabilities here.

Overall, Blockbuster is transforming itself from a rental company based around physical stores to one that is focused on both rentals and sales, and built around a wide variety of delivery channels. At present, the physical retail channel remains the most prominent, but the other three segments are all.....

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