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Introduction
Sandy Cook and David Cook develop 10,000 movie titles and 30 categories. Developed idea of blue and yellow well light building with the name "Blockbuster Entertainment Corp." -
Introduction
Rapid growth = strong buying power with distributors meaning lower prices and newer titles for consumers -
Growth
Blockbuster develops strong inventory system with barcodes able to calculate member and movie details -
Period: to
Introduction
Blockbuster is developed by Sandy and David Cook after their attempt to buy computer software companies fail.They open their own movie rental store appealing to the new "television household" -
Introduction
Blockbuster opened in 1985 hoping to open 20 new stores a year with a mom and pop store feel with family oriented movies -
Introduction
28% of American households were "television houses" (VCR) -
Growth
plan to make chain of movie rental stores with over 1,000 stores nationwide -
Period: to
Growth
creates chain of movie rental stores with 1,000 stores nationwide. opens first franchise in GA in 1986 -
Growth
Opens first franchise store in Atlana, Georgia -
Growth
Aqusistions with other movie rental chains -
Period: to
Maturity
Store numbers hit 4500 with 1.2 billion in revenue. 1/3 of business outside of the US -
Growth
Blockbuster aquired by Viacom -
Maturity
Store numbers hit 4500 with 100 franchise outlets. 1/3 of businesses outside of the United States with 2.4 billion in revenue -
Maturity
Profits drop 310 million -
Maturity
the switch from VCR to DVD did not alter the basic value proposition, target market or operating model -
Maturity
Viacom sells 18% of its stake in Blockbuster for $465 million -
Decline
Blockbuster loses 75% of its market value because of Netflix, Amazon and Redbox -
Decline
Neflix offers internet based movie rental and movies through postal service. Blockbuster soon does the same -
Decline
Netflix revenue reached 1.2 billion -
Decline
Blockbuster in bankruptcy
