Blockbuster Entertainment Corporation and the World Home Video Industry in 1994 (A)

Published 01 Jan 1995
Reference 4500
Topic Strategy
Industry Entertainment
Region Global
Summary

The case chronicles the rapid US expansion of Blockbuster Video under the leadership of Mr Huizinger ; the international expansion; the strategic use of franchising and the diversification in new markets (audio, film production, etc.). It poses the question of how BBV will deal with the challenge of video demand.

Teaching objectives

The case illustrates various issues: the strategic use of rapid expansion and dominance to achieve market power in retail; the diversification into (un)related markets (scope economies); the challenge of product and technology substitution for competitive advantage; the benefit of chain management and (intertemporal) price discrimination.

Keywords
  • AR1995
  • MARKET POWER
  • PRICE DISCRIMINATION
  • PRODUCT SUBSTITUTION
  • EXIT
  • ENTREPRENEURSHIP
  • TECHNOLOGY SUBSTITUTION
  • CHAIN MANAGEMENT
  • FRANCHISING