Blockbuster: An Organizational Analysis What Term Paper

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Blockbuster achieves international growth by opening new store, especially through franchising. The company chooses new locations based on the following factors: franchise climate, the market for your particular product or service, competitive factors, proximity, language barriers, culture, political climate and relevant legal concerns.

Blockbuster also aims to increase its global business through partnerships and acquisitions. Its marketing partnerships include Time Warner and DIRECTV. In 2004 Blockbuster acquired American Satellite and Video, operator of retail stores that buy, sell, and trade video games.

The company also does whatever it takes to stay competitive. For example, to combat the popularity of Netflix, Blockbuster developed the Blockbuster Online service in which members can rent unlimited DVDs online and have them delivered via postal mail for a monthly fee. The company has also added a monthly in-store subscription service called Blockbuster Movie Pass, which allows members to keep two or three movies at a time with no late fees.

Does the company make use of work teams?

One of the main reasons that Blockbuster is so successful is that it trains its employees well and offers them incentives to work toward company goals. Blockbuster trains its employees to work as a team to focus on service, selection, value, and customers. Blockbuster encourages employees to look at their jobs as careers and provides opportunities for both career and personal growth through training, development and promotions. As a result, there is a positive team attitude at its stores.

A work team is a special kind of work group in which team members activities are coordinated with and depend on one another; each member has a role; and all members share a common goal.

Based on the strategies that this company employs within the organization, will the company be successful in its international ventures? What changes would you recommend the organization make to help it be more successful in international markets?

The video rental retail business is highly competitive, and companies compete primarily on title, selection, number of copies available, and the quality of customer service and pricing.

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Blockbuster stores around the world share a common objective -- to provide a broad selection of titles and larger inventory than most of its competitors, more convenient store locations, faster customer check-in and checkout procedures, extended hours, friendly and effective customer service, and competitive pricing for all Blockbuster members.

The standard business model for Blockbuster's rental stores is that they pay a flat fee per video and have unlimited rentals. Blockbuster used to pay a high rate for movies and keep the majority of the rental fee. They would then pay a percentage to the studio, reporting rental information on a regular. However, as studios started selling movies to consumers, this arrangement ceased. Today, Blockbuster buys movies at a lower rate and rents them out.

Part of Blockbuster's global strategy has been to keep up with technology and the company now has a strong online presence. However, there are many challenges when it comes to the online industry. DVD-by-mail rental companies, like Netflix, have taken many Blockbuster customers and forced Blockbuster to offer more promotions and reduce late fees. The company hopes to make up profit losses by increasing volume as customers who hated the late fees rent more.

Whether these strategies work will rest on how customers ultimately decide they want to receive and pay for their entertainment -- and that's one reason Blockbuster's business strategy relies on consumer behavior.

Blockbuster is the largest and most popular video rental shop in the United States and in many other countries around the world. The company's primary business challenge is that it must compete with many other competitors and industries for people's leisure time. With the expansion of the Internet, consumers have more options than ever before. Also, it seems that people today have less and less free time available for leisure activities. Fortunately for Blockbuster, people continue to rent movies in record-breaking numbers. This provides Blockbuster with the opportunity to serve home entertainment needs for years to come......

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