Performance Task

Service Culture

1. Research a local company that has experienced any of the following.

a. A company that is known for how it negatively treats its customers.

 Comcast- faced criticism for its customer service practices. Numerous reports and

customer reviews have highlighted issues such as long wait times, inconsistent service

quality, and difficulties in resolving problems.

b. A company that is exposed as a multi-level marketing scheme.

 Fortune Hi-Tech Marketing - FHTM operated as a multi-level marketing company, where

independent representatives could earn income through direct sales of products and by

recruiting new representatives.

c. A company that lost employees based on how they were treated.

 Uber- Several high-profile executives, including the CEO and other top leaders, left Uber

amid the controversies. The leadership exodus signaled a recognition of the need for a

change in the company's culture.

d. A company that recently closed as it was not able to adapt to sudden changes.

 Blockbuster- company faced challenges due to changes in consumer behavior,

technology advancements, and shifts in the entertainment industry.

2. Create a narrative report that details the following:

• The service culture of the company- The service culture of Blockbuster was rooted in the

concept of providing a convenient and accessible movie and video game rental experience to

customers

• The causes that led to such a turn of events - Blockbuster struggled to innovate its business

model to keep pace with industry changes. The company's focus on the traditional in-store

rental experience hindered its ability to adapt to the preferences of a digitally oriented

consumer base.

• The effects of such events on the company- The closure of Blockbuster stores had tangible

effects on employees, leading to job losses. Employees who had been part of the Blockbuster

workforce faced the challenges of finding new employment opportunities.

• The resolutions done by the company, if any-

Blockbuster implemented several resolutions and initiatives in an attempt to address the

challenges posed by the changing entertainment landscape. Blockbuster recognized the rise of

online platforms and introduced its online rental services. Customers could rent movies and

video games through the Blockbuster website, and DVDs would be shipped to their homes. This

move aimed to compete with emerging online rental services.

3. The narrative report must be no less than 10 sentences. Cite your references.

Blockbuster: The rise and fall of the movie rental store, and what happened to the brand

David Cook, the owner of a video rental business in Dallas, Texas, differentiated his company by

offering customers a vast selection of 8,000 VHS tapes, coupled with a modern, computerized

check-out process. This set his business apart from smaller rental stores that could only provide

a limited number of movies. Following a successful start, the company expanded, opening more

stores within a year. The defining moment for Cook's business came when customers flocked to

avail themselves of the diverse VHS collection.

However, trouble loomed on the horizon in 1997 with the founding of Netflix, which would

later become a formidable competitor for Blockbuster. Blockbuster, known for charging late

fees for movie rentals, faced a turning point in 2000 when it made a critical decision that would

contribute to its downfall: the choice not to acquire Netflix.

At its zenith, Blockbuster boasted 9,000 global stores and a revenue of $5.9 billion. Today, the

once-dominant video rental company has experienced a dramatic decline, reducing to a solitary

store located in a small town. This stark transformation reflects the profound impact of

technological shifts and strategic decisions on the trajectory of a once-thriving business.

Link: https://www.businessinsider.com/rise-and-fall-of-blockbuster#today-the-blockbuster-

franchise-has-dwindled-to-just-one-store-so-where-is-the-last-blockbuster-its-in-bend-oregon-

15