Blockbuster was once the dominant movie rental company with over 6000 stores and $8.4 billion in annual revenue, but failed to adapt to changes in customer demand and new technologies like online streaming from Netflix and Redbox kiosks. Blockbuster's competitive advantages of its large store network became a liability as it faced high operating costs, inflexible brick-and-mortar model, and failure to transition to digital and online services, leading the once-dominant company to file for bankruptcy.

1. its story of failure

2. What is Blockbuster
Movie rental
6000+ stores
David Cook
Dallas, NY
$18.5 million
$8.4 billion
Net worth
8000 VHS tapes
Overall experience
$24 million
Viacom

3. Failure to assess the needs of their
customer
3
Absurd late fee
system
Shift in customer
demand
Redbox: Kiosks
Netflix: Online
streaming
Word of Mouth,
Inconvenience of
the customers

4. Obsolescence of competitive advantage
through technological changes
4
Refocusing on their brick and mortar system
3
Declined $50 million deal of Netflix to digitalized
2
Failure to renovate competitive advantage
1
High operating cost.
4

5. Failure to take proper business
level strategy
5
Strategy to stop late fees and start
online streaming
Internal dispute with the CEO
Rapid changes in competitive
dynamics
Disruptive technology

6. Recommendation
External environment analysis
Capitalizing on opportunities
Technological adaption for digitalization