Netflix And Blockbuster Case Study

Comcast is the largest internet provider in the world. Comcast is split into two businesses Comcast Cable and NBCUniversal. Comcast has 5 segments total which the film entertainment segment provides fourth most in revenue and operating income. We will be analyzing Comcast’s film entertainment segment. Comcast currently has the 3rd most market share with 14.9%, which is behind Walt Disney Company 19.3% and 21st

BLOCKBUSTER ACQUIRES MOVIELINK: A GROWTH STRATEGY? Blockbuster Inc. was founded in 1985 and headquartered in Dallas, Texas and is a leading global provider of in-home movie and game entertainment with over 8,000 stores throughout the Americas, Europe, Asia, and Australia. Blockbuster was one of the strongest and most recognizable entertainment brands in the world to offer movies, video games, and other forms media entertainment on a subscription basis.

Strengths Cineplex Inc. is a Canadian entertainment company that operates from one of the busiest cities in the world Toronto, Ontario. Cineplex currently has 162 theatres within Canada under numerous brands such as, Cineplex Cinemas, Cineplex Odeon, SilverCity, Galaxy Cinemas, Cinema City, Famous Players, Scotiabank Theatres and Cineplex VIP Cinemas. With the company's history going back more than a century it is not unusual that the previous decades have been full of mergers, acquisitions and growth that has brought about one of the biggest movie theatres today. Cineplex is a good experience as the movies is a place where people go to enjoy a film together and along with the brand owning a lot of the theatres in Canada, it is fair to conclude

Ultimately, the tragic failure of Pets.com was because of a lack of market knowledge, mismanagement of funds and overestimating the power of internet which they became too reliant upon. I believe Pets.com was incapable of looking at their own company externally. If they were asked what industry are we in? Pets.com’s answer would be something like the ecommerce business rather than the home and pet industry. This is a similar example to the company Kodak as they failed to adapt to the fast-paced market and only looked at themselves internally and didn’t adjust to the digital age.

Piracy might affect the income of workers involved in the making of movies. Workers in the lower rungs of the entertainment industry may experience cutting overhead (Straus, 2013). They are basically people who work behind the scenes for the movies. According to Loeb (2010), those who work behind the scenes derive a substantial portion of their health, welfare, benefits, and retirement contributions from the revenue that their work generates from secondary markets which consist of foreign distribution, DVD sales, and airings on television.

Weaknesses: First, Jamba Juice’s initial surge in store openings, coupled with mismanaged growth patterns, placed a strain on the company’s cash reserves. Second, a further lack of financial discipline within the company allowed for huge increases in operating expenses. Third, although Jamba Juice initially gained popularity due to innovative products, their product offerings quickly became outdated and unexciting. Fourth, the seasonality of cold drinks created stagnant revenue during Fall and Winter months. Fifth, Jamba Juice initially relied on word-of-mouth advertising, but failed to create a viable marketing strategy as they expanded nationwide.

As we can see on Cineplex website, its history “…can be traced back to 1912 when Adolph Zukor founded the Famous Players Film Corporation, before merging with Canadian N.L. Nathanson’s company to form Famous Players-Lasky Corp.” , but only in 1979 gain the name as we know actually and was created by Garth Drabinsky and Nathan Taylor. Still according to the same information font, recently Cineplex history was punctuated by acquisitions, merges and continuous growth designing the company as known nowadays. In 1979 Garth Drabinsky and Nathan Taylor created the first Cineplex theatre in Toronto, Ontario and starts its expansion all over Canada, US and Europe, but the business model was not good and the company went bankrupt in 2001.

Overall, the increased debt is justifiable as they are producing a lot more, but it does hinder their liquidity and ability to take on more debt. In 2015 the company had a gross margin at 30.8% which was higher than the industry. This is a good indication that the

By keeping production of new television shows within the company, there

Inc., n.d.). In 1994, when Amazon was founded it was running out of the founder Jeff Bezos’ garage, making $20,000 per week in profit. Recently in 2014, Amazon has acquired the title of “The Everything Store” with 154,100 full time employees working for it, and it earned $90 billion in revenue. Amazon has broadened its market by allowing sellers to sell their new and used items along with Amazon products, giving customers the option to choose a product that matches their affordability (shorr,

1 Overview of Company Since it was founded in 1923, Walt Disney Company has become a world-famous entertainment and media company, and its turnover brings it to the second place among global media companies (after Time Warner). It is constantly working to provide people with the most special entertainment experience, and has been adhering to the company 's good tradition of quality and innovation. After years of development, Walt Disney is already a successful transnational corporation and its operations involve in parks and resorts, consumer products, media networks, and studio entertainment these four industries. By the end of September 2017, its media network is the most profitable business which the revenue is 42.6% of the total while

Movie industry consist of different types of firms throughout the product value chain. This market includes: famous movie studios such as Walt Disney and Colombia pictures, independent production companies like Sony pictures entertainment and Warner Bros pictures, independent distributions such as 20th Century Fox, and major national exhibitions such as Cinemark and AMC. In the United States each part of value chain in the movie industry is separate and integration between distributor and exhibition is not allowed. “Vertical integration between distributors and exhibitors is prohibited under the 1948 United States v. Paramount Pictures decree.”

In addition, lower ticket costs for movies after a certain time period from release date to combat DVD competition also an opportunity to this industry. There will be more movie options and less selling out of blockbusters as its show a certain film on multiple screens at the same time, lower tickets costs could attract consumer to purchase those tickets. Moreover, introduce Customer Loyalty Programs also an opportunity to promote this industry. For instance, promote different programming such as sports, plays, musicals and more to different watchers. 3.4

Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.

The new company must know about the company that they want to compete. For the new company that want to joint in this industry must have big capital to build the cinemas with the latest of system technology of cinemas that can make the customers can choose the new company compare the others companies. They also get high of threats that can make the company cannot run stable in this industry. In this case, the customers don’t worried about the services of the MBO cinemas, because they always make the best for the customers that can make the customers feel great while watch their favourite movies.