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Blockbuster Analysis

Blockbuster Analysis



Abel De La Cruz
Mark Koalenz
Gabriela Sotelo
Reece Timmermann

Table of Contents

SECTION 1: INTRODUCTION AND HISTORY TO DATE 4
SECTION 2: THE ENVIRONMENTAL THREAT OPPORTUNITY PROFILE (ETOP) 6
Industry Analysis 6
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Time Warner Error! Bookmark not defined.
Hastings Error! Bookmark not defined.
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SECTION 3: THE STRATEGIC ADVANTAGE PROFILE (SAP) 14
Financial Analysis 14
Cash Flows 14
Ratio Analysis 15
Valuation 16
Operations Information 16
Financial Ratios 17
Per Share Data 17
Common Size Income and Balance Sheet – Analysis 18
Stock Analysis 19
Strengths and Weaknesses 20
SECTION 4: STATEMENT OF THE MISSION 22
STATEMENT OF CORPORATE OBJECTIVES 24
FIGURE 1 25
FIGURE 2 26
SECTION 5: STRATEGIC ALTERNATIVES 27
Alternatives with Advantages and Disadvantages 27
Internet Rental 27
XM or Sirius Blockbuster Movie Radio Station 27
Acquisition of Redbox/Creation of Bluebox 28
Support Both Blu-ray & HD DVD Movies 29
More Blockbuster Exclusive DVDs and Video Games. 30
Community Events 30
Coupons and Deals 31
Video on Demand & Pay-Per-View 31
SECTION 6: IMPLEMENTATION OF STRATEGIES 33
SECTION 7: CITATIONS FROM OUTSIDE SOURCE MATERIALS 36
APPENDIX 1 38

Section 1: Introduction and History to Date

Blockbuster Video is the world’s largest video rental chain. It currently has over 8300 stores in more than 20 countries including Mexico, the U.K. and Australia. Its customers rent over a billion videos, games and DVDs each year. The company is ranked #410 on the Fortune 500 list, better its top competitors. The company is based in Dallas, Texas and trades on the New York stock exchange under the symbol BBI. In 2006, its sales total $5,523,500,000, more than Hastings,...