SWOT Analysis:
Blockbuster vs.
Netflix in the
Entertainment
Industry
BY GROUP NO. 10
SUBJECT- PCE
CLASS- D6ADB
DEPARTMENT- AIDS
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The Rise of Blockbuster: A
VHS Rental Giant
1 1985: Founding
David Cook opens the first Blockbuster store in Dallas,
Texas. The concept quickly gains popularity.
2 1994: Expansion
Blockbuster reaches 3,600 stores worldwide. It becomes the
dominant player in video rentals.
3 1999: Peak
With over 9,000 stores globally, Blockbuster seems
unstoppable in the entertainment industry.
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The Emergence of Netflix:
Disrupting the Home
Entertainment Market
1997: DVD-by-Mail
Netflix launches its DVD-by-mail rental service, offering a novel
approach to movie rentals.
2007: Streaming Begins
Netflix introduces video streaming, revolutionizing how people
consume entertainment at home.
2013: Original Content
The company starts producing original content, further disrupting
the traditional entertainment industry.
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Strengths of Blockbuster: Brick-and-Mortar
Presence and Brand Recognition
1 Physical Presence 2 Brand Recognition 3 Social Experience
Thousands of stores provided Blockbuster was a household Stores offered a social aspect to
convenient access to movies for name, synonymous with movie movie selection, with staff
customers across the globe. rentals and family entertainment. recommendations and browsing.
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Strengths of Netflix: Innovative
Streaming Technology and
Personalized
Recommendations
1 Streaming Technology 2 Personalization
Netflix's robust streaming Advanced algorithms provide
platform offers instant access to tailored recommendations,
a vast library of content. enhancing user experience and
engagement.
3 Original Content
Netflix's investment in high-quality original programming sets it apart
from competitors.
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Weaknesses of Blockbuster: Limited Flexibility
and High Overhead Costs
High Overhead Late Fees Slow Adaptation
Maintaining physical stores and The controversial late fee system Blockbuster was slow to recognize
inventory was expensive, limiting alienated customers and created and respond to the shift towards
Blockbuster's ability to adapt quickly. negative brand associations. digital entertainment.
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Weaknesses of Netflix: Limited Physical
Presence and Content Licensing Challenges
No Physical Stores Licensing Costs Internet Dependency
The lack of physical presence limits Acquiring and maintaining content Netflix relies heavily on internet
Netflix's ability to reach certain licenses is expensive and impacts infrastructure, which can be a
customer segments. Netflix's profitability. limitation in some markets.
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Opportunities for Blockbuster:
Adapting to Changing
Consumer Preferences
Digital Transition Subscription Model
Blockbuster could have Implementing a subscription-
leveraged its brand to create a based service could have
strong online presence. retained customers and
increased revenue.
Exclusive Content
Producing original content could have differentiated Blockbuster from
emerging competitors.
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Opportunities for Netflix:
International Expansion and
Diversification of Content
Global Expansion
Netflix can continue to grow by entering new international markets
and localizing content.
Content Diversity
Expanding into new genres and formats can attract a wider
audience base.
Technological Innovation
Investing in new technologies like VR could create unique viewing
experiences for subscribers.
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Threats to Blockbuster: The Shift to
Digital Streaming and Subscription
Models
Streaming Services
The rise of streaming platforms like Netflix posed a significant threat to Blockbuster's business
model.
Subscription Models
Netflix's subscription model offered more convenience and value than traditional rentals.
Technological Advancements
Rapid improvements in internet speed and digital devices accelerated the shift away from physical
media.
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Threats to Netflix
Competition from Streaming Giants Streaming Wars
As major tech and media companies launch their own streaming services, The rapidly evolving streaming landscape creates uncertainty as
Netflix faces intensifying competition for subscribers and content. companies battle for market share and exclusive content rights.
Regulatory Challenges Content Acquisition Costs
The rising costs of licensing and producing original content could strain
Potential changes to net neutrality laws and content regulations could
Netflix's profitability and limit its ability to invest.
impact Netflix's ability to deliver its service.
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Conclusion
A Tale of Two Titans Lessons Learned The Future of Home Entertainment
The rise and fall of Blockbuster and The contrasting experiences of
the ascent of Netflix illustrate the these two companies offer valuable As the entertainment landscape
power of technological disruption insights into the importance of continues to evolve, the ability to
and the need for strategic innovation, customer-centricity, navigate change and embrace
adaptability. and anticipating industry shifts. new paradigms will be crucial for
industry players.
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THANK YOU ☺
Presented By: Kapil Jagnani (65)
Jayesh Fatnani (66)
Namrah Khan (67)
Sundaram Krishnan (68)
Sheril Dawra (69)
Aryan Nagdev (70)
Khushi Warang (71)
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