WHAT WOULD I DO?
If I controlled Blockbuster for the day…
Blockbuster is a huge provider of rental based video games and DVDs.
It is one of my favourite companies simply because of the market
that it operates in, (I’m a bit of a gamer myself!), in addition to the
successes that it has achieved.
However, in 2010, Blockbuster filed for bankruptcy – one of the
saddest pieces of news for the loyal customers of this business.
Something went seriously wrong for this to happen and many stores
closed. I believe that it was due to the fact of pirate DVDs and online
downloads becoming more and more abundant. I believe in new
ideas that can counter this problem.
Blockbuster was recently taken over by Dish Network. In this
PowerPoint, I highlight some of the things that I’d change if I was in
charge of the company for the day. Whilst some of these ideas are
unrealistic in terms of the timescale, they could by implemented by
the new owners to create a revolutionary rental business!
There are a lot of new changes that are going to be taking place at Blockbuster and
therefore a team of dedicated senior directors is needed.
I would start with team building exercises to ‘break the ice’. I would first get each
employee to introduce themselves and reveal a little about their experiences with the
business in the past. The next team building exercise that I would play is here – with
reference to Fresh Tracks (www.freshtracks.co.uk/pdf%20files/freefrostbite.pdf). With this link formed, I would
then outline my plans for the company and would conduct a discussion, as I believe
that team influence is important and likely to be more representative. I also believe
that these plans would increase team morale.
Finally, I would outline schemes if the new project goes ahead as desired – employee
rewards; such as “employee of the week” (or in my case hour!) and bonuses for all
staff should we meet our targets; funded by the sale of shares and increased
revenue. I would then split the team into groups so that we could achieve the tasks
stated on each slide within the day.
THE FIRST DAY IN THE OFFICE…
There are a lot of potential investments within this new – look business.
These investments require initial finance, which I believe could be taken
from current owner’s funds / current investments in the company.
A large loan could be taken out to fund this multi – million deal, with
extensions of the company resting upon a hire purchase market.
Another method of finance that I would suggest is to sell secondary
shares. This would promote a ‘customer friendly company’ and also be a
way of raising capital to take out such a substantial loan.
A possible deal may also be negotiated with
prospective partners who may be prepared to make
an initial investment within the business – to
oversee deals and so they can ‘have their name on
I would task another of the
divided groups into
assessing the new
corporate identity of the
company. I believe that
this should be done to
attract the new
designated target market
– that of families and
‘A POTENTIAL NEW LOGO DESIGN FOR BLOCKBUSTER’
This logo is more suitable to my target market – concise and gives a general
message of the company. The symbol is generic and could link with
sponsorship. Words such as “epic” and the phrase “here to bust the boredom”
is very informal and would attract the younger generation. It also suggests the
corporate identity of the company as ever – powerful.
NEW SUSTAINABILITY PRIORITIES
As part of a ‘family friendly’ corporate identity, I would also suggest a new sustainability
priority plan for the company.
This could be as simple as selling re – usable bags, with the business name on it, which
could in turn also enhance the brand image. The business could also be committed to
using less packaging and purchasing movies and games locally.
This is why one of the first things that I would do is produce a sustainability plan.
To encourage potential customers and to reward repeat customers, I believe that a new incentive scheme should be
offered to them in relation to the frequency and cost of each order. I would task one of the teams to draft out new
customer initiatives; I believe that this should be implemented on the customer database – each purchase detailed
as a record and after a milestone is passed, Blockbuster get in touch with the customer to let them know of their
prize. Below is a list of suggestions for prizes at each milestone:
£50 in total spent = Free DVD or video game rental
£100 in total spent = Free DVD and video game rental for a month
£250 in total spent = Free DVD or video game
£500 in total spent = Free DVD and video game rental for a year
£1000 in total spent = BIG AFTERNOON OUT for two. Includes two tickets at the sponsored sports team (see later
slides) and a meal at a 5* restaurant including a stay at one of the country’s best hotels.
£2500 in total spent = Backstage tour at a major studio for two e.g. Sony, DreamWorks etc.
£5000 in total spent = Two tickets to a movie premiere – including backstage passes and autographs from the
£10000 in total spent = Family holiday to Hollywood for a week.
I believe these to be significant and exclusive incentives, with a definite possibility of attracting new customers and
rewarding repeat customers.
I would task a promotional team with drafting out a
new form of advertising for Blockbuster. Some
ideas are on the next few slides – and this team
can expand and elaborate on the information, as
well as oversee these potential deals.
Blockbuster needs a more suitable advertising
medium, to reach out to the new target market of
both young people and families. The advertising
needs to be more creative – also suggested on
Part of my promotion team could establish links with national
radio stations and create an advert. Radio is a cheaper
method of promotion than television and can differentiate
promotion the target market through different radio stations.
My target market are likely to hear the advert ‘on – the – go’, for
example whilst travelling or in shopping centres. I think that
this would definitely attract prospective customers.
The advert should be upbeat and involve more than one
speaker. Perhaps it could be better to pay a commission to
some members of the public to take part – as voice actors
could then include families and young people. This could be of
an added benefit when promoting to my target market; hearing
someone of ‘their own type’ could draw them in better.
Again, I would task a section of my promotional team
with forming new links of advertisement. Another
market that I would target is newspapers, for a full
I would go for a national newspaper, maybe a less
formal one (i.e. tabloid) as this would allow me to
differentiate the advert to my target market. The
advert can be in colour, which adds visual appeal to
the brand identity that I would like the public to
POSTERS / FLYERS
Another key form of advertisement that I would
promote is the form of posters and flyers. This is
relatively cheap, highly visual form of
advertisement. This can also be targeted at specific
parts of the country where sales may not be of the
Flyers also make for a great form of advertisement –
cheap and can be delivered door – to – door or
through newspaper inserts.
My promotional team would be tasked with creating a
practical, yet effective poster / flyer.
Another part of my promotional team could form links with potential companies /
teams that would like to be sponsored.
The advantages of sponsorship include the fact that the name becomes familiar
and the brand image is enhanced. The markets that I believe could harbour
potential deals include:
Sports teams – Blockbuster could sponsor the shirt and attract football fans (a
large proportion of my target market lies here).
Worldwide sporting events – A potential example is Euro 2012. Again, this will
attract football fans.
A market that compliments the media rental industry. For example, a furniture
store could be sponsored – both films and furniture compliment each other
A NEW – LOOK WEBSITE
My technological team would have two tasks to accomplish by the end of the
1. To complete a draft layout of a new – look website.
2. To complete a draft layout of a mobile application.
The new – look website should in – corporate the new brand identity. The new
website would be designed to be ‘upbeat’ and colourful. The website should
be created for a younger generation – as these are the primary users of the
internet. A new feature could mean that a ‘virtual tour’ of the headquarters
can be taken – and also that the public can register as members (also can
be linked to the ‘initiatives’ scheme) and premium features can be accessed
by upgrading the account. This would also be a source of additional
A MOBILE APPLICATION (M – COMMERCE)
The second section of my technological team will draft a mobile application.
On the mobile application, I would suggest this as the basic specification:
The mobile application should be free to download.
The mobile application should allow ‘orders’ to be placed for movies and
games that people wish to rent – a delivery team should be in place to
deliver the order the next day.
The mobile application should also offer the same incentives as would be
offered in store.
The mobile application should incorporate wi – fi or so that it can be
Especially in relation to the last point, the application should offer some
form of security when making payments.
The application should be creative and colourful, as well as enhance the
brand image successfully.
A MONTHLY BLOCKBUSTER MAGAZINE!
This would be a fantastic way of advertising products and could
lead to increased revenue. The features of the magazine that I
would suggest include:
Latest deals / products on offer
Most popular products
Reviews and opinions
Puzzles with prizes
Inside information about the company i.e. “what have the
directors been up to this month?”
All the latest news surrounding the company.
With this being a monthly magazine, customers would have the
opportunity to subscribe to be a member.
EMPLOYMENT – THE YOUNGER
Obviously, the cost of labour is relatively high. Within my reign of the
business for the day I would like to start an recruitment campaign to
attract young people as workers.
My obvious target would be the student market, with those at University
over – 18 and therefore old enough to handle restricted access movies
The benefit for them is that they are given a part – time, local job that can fit
in with their studies in relation to time commitment.
The benefit for the business? These workers only have to be paid the
minimum wage – which lowers labour costs. In addition to this, the
corporate identity of the company is promoted as ‘young people friendly’
– perhaps the younger generation are more likely to make a purchase
with somebody their age that they can relate to and converse with,
behind the till.
UNIQUE SELLING POINTS
One of the secondary objectives of the day would be to
explore the unique selling points that Blockbuster has
over its competitors and how these could be played on
in an oligopolic market more.
A unique selling point is a fact of what sets a business and
its product aside from its competitors, and goes ‘the
extra mile’ to promote this to its customers.
With the new proposals discussed on previous slides, I
believe these to be the unique selling points for
Blockbuster. This would suggest the introduction of M –
Commerce, which isn’t a primary attribute that is
currently used by Blockbuster’s main rivals.
OPEN TO A NEW MARKET…
This is an option that would be discussed with the team of directors throughout
If Blockbuster was to open to a new market, it would be less reliant on rentals
and customers bringing media back to the store. Its market also may be
nearing a saturation stage – with the advancement of online downloads.
A potential market that could be considered is a coffee bar. This could be an
extension to some of the largest Blockbuster retail stores and could link to the
company if the bar played films and games could be sampled. For a small
fee, the public could enter the bar or cinema café – which would lead to large,
increased revenue. This could also result in an uptake of rented movies and
Obviously, this suggestion is only preliminary and I would conduct a discussion
involving other schemes throughout the day.
LINKS TO MAKE WITH OTHER
As a major retailer, Blockbuster would have to make crucial links with other businesses. This
can help in terms of advertising, and if a partnership is formed then it may also help with
financial concerns. Below are a few that I think should be contacted. I would personally
discuss negotiations with these companies throughout the day – and what a day it would
Major businesses to make links with:
FIFA – especially if applying to sponsor Euro 2012
Major studies (DreamWorks, Pixar, 20th Century Fox)
Major restaurants and hotels
All of these links can either help to advertise the company or be part of some of the
incentives. E.g. DreamWorks could offer free tickets to backstage if Blockbuster sold x
amount of their DVDs. A lot of these businesses have access to the family market and
the young people market and could help to strengthen the new corporate identity of
And that, is what I would do if I controlled Blockbuster for the day.
It should be noted that I have elaborated on a lot of these slides – with
inside knowledge gathered from Business studies at GCSE level,
from lessons and by various textbooks. I have also used a lot of
brand names and clip art images, which I deem to be OK due to the
purpose of education.
I am an aspiring young person who wishes to step into the world of
Business. I am really interested in this competition and I would be
privileged to be considered for a winning place. However, I wish the
best of luck to other entrants.