Blockbuster Final Presentation

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Blockbuster

BlockbusterA New Business Plan Scene SelectionCompany BackgroundIndustry CompetitionMarketingStructure & ManagementFinancial StruggleRecommendationRisks & Benefits

Directed by: Mandy Sherman, Ryan Dangaran, Roy Matsunaga, Angela Bettenburg, Kyle Callahan, Brian DeHaan Company BackgroundIndustry 2% Industry 19% Competition 44%13%20%23%Competition HIGHHIGHHIGHMarketingCustomers Marketing BlockbusterNetflixRedboxImpulse Rentals$4.99 / new releases$1 / non-new releasesNone$1 / rental Online Subscriptions$9.99-$19.99

$4.99-$16.99

NoneIn-Store Subscriptions$21.99unlimitedNoneNoneCompetitor Pricing Product Life Cycle

MarketingDistribution System

Advertising and Promotionas a percentage of sales39 online-distribution centers

Reach 90% customers in 1 dayNetflixBlockbuster Movie Gallery

18% 4% 4%ManagementCentralized

Bureaucratic

Elaboration Stage

OrganizationMature industry

Functional-mechanistic structure

Hierarchical

StructureNeed For REVITALIZATIONCompensation & ControlFinancialsCurrent Ratio

Quick Ratio

Blockbuster Industry Avg.

1.021.27 0.751.04 Cost of Goods SoldAs percentage of sales

20072004

48.3%40.3% Blockbuster reported that its full-year domestic same-store sales rose 6.4 percent, a sharp turnaround from the 6.9 percent decline reported a year ago. The results included a 1.2 percent rise in rentals and a 37.4 percent jump in retail comparables.16FinancialsSales$5.5 BillionCash$95 Million (10/5/08)General & AdministrativeCurrent Stock Price$0.40(3/9/09)Market Cap$77.1 Million Overhead declining as percentage of salesBlockbuster reported that its full-year domestic same-store sales rose 6.4 percent, a sharp turnaround from the 6.9 percent decline reported a year ago. The results included a 1.2 percent rise in rentals and a 37.4 percent jump in retail comparables.17RecommendationsRecommendationsDirect Video Game DownloadsSubscription based Blockbuster On-Demand channelSimilar look and feel as Blockbuster.com

19Recommendations

On-Demand Blockbuster ChannelSubscription based Blockbuster On-Demand channelSimilar look and feel as Blockbuster.com

20Risks Projects in Growth stageUncertainty

CompetitionPotential loss of first mover advantage

Debt to Equity Ratio 3.17

Lack of fundingLiquidate & Close

BenefitsIncreased Liquidity

Improve customer satisfaction

Differentiate from competitors

Retain existing customers

Capture new customers

Credits

AngelaStage DirectorRyanFilm EditorMandy..........Script SupervisorRoy..Producer Kyle..CinematographerBrian.Gaffer

Questions23