Blockbuster once owned over 9,000 video-rental stores in the United States.

But, in 2010 Blockbuster filed for bankruptcy with almost $1 billion in debt because it failed to keep up
with competitors like Netflix, who created a DVD-by-mail service.

Now only one Blockbuster survives and it will be listed on Airbnb for $4 per night for a limited time in
September.

the world's last Blockbuster in Bend, Oregon.

Strengths
* Lead market share of online rentals
* Low fixed costs
* Worlds largest selection of DVDs
* Fastest delivery time of any online DVD rental company with over 35 DCs

* Service: over 90% of DVD's are received by customers within one day of ordering
* Strong website (shopability, navigation, reviews)

Weaknesses

* Can't control most important expense: shipping expenses

* Older demographic has a hard time understanding their concept

* Watch instantly feature only allows a small selection of DVD's

* Distribution time

* presence in only DVD segment

Opportunities

* Pricing segmentation (i.e., different plans)

* Online distribution

* Other types of rentals (Video games, educational, institutional, etc)

* Internationalization

* Expanding to Video Game rental

Threats
Rising stamp costs, Other larger retailers launching into similar space (i.e., Wal-Mart, Online digital
distribution iTunes, Napster Redbox, Blockbuster allowing the rental of games in addition to movies Like
most brick-and-mortar rental businesses, Netflix often has trouble providing enough copies of new,
popular movies

Strategy Used

Blockbuster video began to sell its stock of dvds and video games before they shut down in order to
maximize their profits before going out of business.

The Issues and...