BSBINN601 – Manage Organisational Change 16

 Has the restructure or change fully solved the problem it was seeking to address?
 What lessons were learnt during the restructure or change? How could these
contribute to future restructuring/change processes?
 Determine how satisfied the key stakeholders are with the end results.
 Review staff wellbeing through a post-change wellbeing risk assessment to identify
any actions required.
 Review equality impact to identify any actions required.
 What has been the impact on customer satisfaction?

Evaluations conducted will be summarised and provided in a report to the key stakeholders
via email. We will continue to capitalise on these evaluations by performing continuous
improvements.

Environmental Analysis

From Blockbuster to Redbox, all video rental shops have one thing in common: they provide a
service to their clients. These firms do not create the films they rent out; rather, they just
supply them. This implies that it is a relatively simple idea to replicate, and with technological
advancements and the arrival of the Internet, the way firms strategy and join the market is
more dependent on customer behavior. On the supply side, high-tech means higher efficiency,
lower overhead (labor, rent, etc.) and more customized, yet faster service for consumers,
causing consumer behavior to shift toward the Internet, which has opened the doors for
consumers to price shop and compare products beyond what is carried on the shelf. By
altering the old business with innovation and delivering lower-priced, more convenient
rentals, this approach allowed Redbox and Netflix to break into the video rental market.

PEST ANALYSIS

Government The government is abiding by all World Trade

Regulations & Organization laws and regulations. There is uniformity in
Deregulations both policy formulation and policy execution.
Political

Political According on the evidence presented in the Blockbuster

Governance System Video case study, the country appears to have a stable
BSBINN601 – Manage Organisational Change 17

political structure.

Blockbuster may devise tactics based on a stable political

climate.

Economic Foreign Exchnage A number of firms have suffered losses in recent years as
Factor rate a result of currency risk in Venezuela, Brazil, and
Argentina.

Before entering a new market, Blockbuster should

consider the history of currency risk. Many US firms have
suffered losses in Mexico as a result of the country's
ongoing currency issue.

Employment rate If the employment rate is high, it will have two effects on
Blockbuster's strategies: first, it will supply enough
customers for Blockbuster's Blockbuster products, and
second, it will make it more costly for Blockbuster to
acquire talented and skilled staff.

Social Changing Every company in the film business is dependent on

Preferences customer interests. The industry must understand what
satisfies the client and choose the appropriate genres for
this procedure.

Because the majority of the population is made up of

Millennials who grew up during a period of transition, it
is likely that they have different goals and expectations
than the preceding generation.

Demographics Its competitor Netflix, has covered most of the globe

almost over 190 countries. However, there are countries
which are Netflix free. It was found that over 70% of the
population who continue to age and belongs to filming
industry in 2000 are still relying on Blockbuster for
movies.

Attitude towards The saving culture in the United States and China is
Saving completely different. While the savings rate in China is
BSBINN601 – Manage Organisational Change 18

above 30%, it is considerably below 15% in the United

States.

This consuming and saving culture has an influence on

both consumption and amount of consumption.

Technology Integration of Uber failed in China because it attempted to penetrate

Technology into before smartphones were widely available in the country.
Society & Business Blockbuster should develop a strategy that integrates
social ideals, infrastructure, and the Blockbuster business
model.

Acceptance of Mobile payments is one of the areas where the United

Mobile Payment States lags behind China. Blockbuster should analyze
and mobile app what mobile payment options are favored in the local
economy and base its business strategy on them.

Migration to Digital This is more economical than having printed copies of

Filming movies ie CD & DVDs. Blockbuser should more focus on
saving cost by making the movies available to customer
digitally.

Competitor analysis (at least two comparable competitors)

Netflix:

Netflix is a prominent streaming video on demand (SVOD) provider with 130 million
customers that operates in 190 countries. In the video streaming sector, the product and
income model are highly clear and straightforward. Users may view TV shows, movies (on-
demand), or other video material on a range of devices such as tablets, laptops, and
smartphones. Netflix, as one of the early pioneers in this market, has built a strong user base
as well as a business strategy that generates significant income for the company.

As the potential of development increases and certain large markets (such as Asia-Pacific)
remain largely untapped, the video streaming field is becoming a more competitive industry.
BSBINN601 – Manage Organisational Change 19

To retain and attract users, businesses will need to provide popular content. As a result, there
is strong rivalry among firms to get popular licensed material from media companies or to
produce their own content.

Key Takeaway:

 Instead than focusing on providing amazing (and inexpensive) entertainment to its

viewers – something Netflix has mastered - Blockbuster placed more emphasis on the
model they were most comfortable with.
 Blockbuster did (at some point) see that the Netflix model was the way of the future.
They did, however, make modifications to remedy it. In the end, though, it was too
little, too late.

Amazon Prime Video

Amazon's foray into video streaming comes as no surprise given that it is the largest e-
commerce firm in the United States. In 2018, Amazon renamed its video services as Prime
Video, and Prime members now have access to a huge collection of movies and TV series.
Prime Video, which is similar to Netflix, provides immediate streaming on Amazon products,
major gaming consoles, set-top boxes, and devices that support the Amazon app.

Key Points

 Prime have more movies offered than Blockbuster.

 Subscription is annual or monthly unlike blockbuster per movie rental charge.

Specify major change requirements in company’s operations due to

planned changes

Currently, Blockbuster is focusing more on commercial and some of the most popular
networking sites like as Facebook and Twitter, as well as telephone, mail, in-store
promotions, and applications for smart phones and tablets. Around 2007, Netflix transitioned
from video distribution to online-streaming content. Their objective was to nip technology in
the bud and prepare for a technological revolution in personal computer and internet usage.
Netflix became popular among consumers since they charge a membership fee and do not
charge late fees (Blockbuster used to charge late fees), giving Netflix total control over the
new sector.