VISUAL
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STRATEGY GUIDE
STRATEGY GUIDE
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BLOCKBUSTER
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STRATEGY GUIDE
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VISUAL
BLOCKBUSTER
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STRATEGY GUIDE
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STRATEGY GUIDE
“Never, ever underestimate the importance of having fun.”
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—Randy Pausch
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CON TEN TS/ 45
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BLOCKBUSTER BACKGROUND 1.1
Brand Overview
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1.2
History
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1.3
Time-line
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THE FUTURE 2.1
Mission Statement
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2.2
Who we Were
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2.3
Who we Are
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THE AUDIENCE 3.1
Persona
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THE COMPETITORS 4.1
Current Competitors
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4.2
Adjacent Competitors
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4.2
Future Competitors
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STRATEGY GUIDE
01 BACKGROUND 45
BLOCKBUSTER
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STRATEGY GUIDE
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BLOCKBUSTER BACKGROUND
//////// INTRODUCTION Blockbuster was an American-based provider of home movie and video game rental services through video rental shops, DVD- by-mail, streaming, video on demand, and cinema theater. At its peak in 2004, Blockbuster consisted of nearly 60,000 employees and over 9,000 stores. On this day in 1985, the first Blockbuster video-rental store opens, in Dallas, Texas. At a time when most video stores were small-scale operations featuring a limited selection of titles, Blockbuster opened with some 8,000 tapes displayed on shelves around the store and a computerized check-out process. The first store was a success and Blockbuster expanded rapidly, eventually becoming one of the world’s largest providers of in-home movies and game entertainment.
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STRATEGY GUIDE
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BLOCKBUSTER BACKGROUND
//////// HISTORY Blockbuster was founded by David Cook, whose wife inspired him to open the store while the oil industry he worked in was in a recession. The first store opened in Dallas, Texas, in1985. The business grew to be the largest video rental chain in the world, surpassing its competitors. One of Blockbuster’s revolutionary customer experiences was their large inventory. According to some sources, the average independent video store carried between 1,500 and 2,500 taps but Blockbuster stores averaged out at 10,000 videos per store. They also utilized a computer system and refused to stock adult films. The eventual fall of Blockbuster is attributed to several factors, but the leading reason is considered the streaming service Netflix (which was founded by a Blockbuster customers frustrated with late fees). In 2010, Blockbuster filed for bankruptcy before being bought by Dish Network in 2011. There are only about 50 franchise Blockbuster stores still open. An “at home” version of the company also still exists which allows customers to stream content.
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STRATEGY GUIDE
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TIME-LINE
2002 Blockbuster has enough growth potential to attract just under $95 million in its initial public offering.
2004 Billionaire investor Carl Icahn makes his first investment in Blockbuster, buying 5.8% of the company’s Class A shares for $83.8 million.
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1999 Viacom holds Blockbuster IPO, valued at up to $4.8 billion.
1997 The rent-by-mail chain, founded.
1994 Viacom acquires Blockbuster for $8.4 billion. 1985 First Blockbuster store opens in Dallas.
BLOCKBUSTER BACKGROUND
2003-2005 From 2003 to 2005 Blockbuster loses 75% of its market value as competition increases from the likes of Netflix and Redbox.
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2006 Blockbuster, now valued at $500 million, surpasses its goal of two million subscribers for its online platform. 2009 Blockbuster rolls out Blockbuster Express, its kiosk system designed to compete with Redbox.
September 2010 Drowned in revenue losses of $1.1 billion, sources say Blockbuster plans to file for bankruptcy. The company is valued at just $24 million.
2016 Blockbuster launches our new vision.
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02 THE FUTURE 45
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STRATEGY GUIDE
“It’s kind of fun to do the impossible.” 45
—Walt Disney
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STRATEGY GUIDE
02Push the OUR MISSION STATEMENT
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limitations of how to bring fun to people at home.
BLOCKBUSTER THE FUTURE
//////// In the future, Blockbuster will encourage people having fun in a more active and a healthy way. Blockbuster will bring fun to home and also push people out of their rooms and seek the higher level of entertainment. Blockbuster will use future technology to make a fun living environment. With the new VR technology, people can travel around the world and walk on the moon at home. Also, in the future, Blockbuster will encourage people to get out of their rooms to find fun in sports, art, and communication. Close ones can take the adventure together, such as camping, hiking, playing ball games and so on.
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STRATEGY GUIDE
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WHO WE WERE Blockbuster used to be the most success video rental store in U.S. However, the outdated marketing method made it fall behind the time. Blockbuster brought convenient but lazy lifestyle to its audience, which was limited a lot of the business
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BLOCKBUSTER THE FUTURE
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STRATEGY GUIDE
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WHO WE ARE The new Blockbuster is more active and diverse, and it includes more future technology. Instead of just providing game and movie to the audience, we create different ways to let people experience fun at home.
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BLOCKBUSTER THE FUTURE
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STRATEGY GUIDE
03 THE AUDIENCE 45
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BLOCKBUSTER THE AUDIENCE
//////// THE AUDIENCE In the future, Blockbuster’s target audience will be in a wider range. Our audience may be the one who desires to get a better entertainment visual experience; someone who wants to spend more time with their family or friends during busy daily lives; some people may not able to have enough money or schedule for traveling. Blockbuster is here to fulfill those desires. We prepare indoors, and outdoors entertainment to bringing fun to home and let closes one to have more wonderful memories with each other. Blockbuster intends to bring joy to everyone at home. In the future, Blockbuster not only fulfills clients who live in the city, but also it think about what people needs in suburban and rural areas. Blockbuster intends to bring fun to everyone, such as lonely elders, naughty children, and the disabled. We want to make the world like a big community. Blockbuster wants to bring people closer.
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STRATEGY GUIDE
12 year-old Middle School Student American
A Moody Adolescent
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Alex Wilson * Alex’s parents often go business trip, so he always stays at home alone. * Alex likes playing video games. He thinks playing video games is a way to escape from reality. *Alex wants more time spending with his parents because he barely sees them. *Alex doesn’t know how to express his love to his parents. Instead, he often angry with them.
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*Alex is a little self-centered person, and he doesn’t care much about the world. * Because of parents’ working situation, his family often moves. Thus, Alex doesn’t have enough time making friends. *Alex likes drawing. He sketches his thoughts through abstract lines.
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BLOCKBUSTER THE AUDIENCE
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STRATEGY GUIDE
30 year-old Designer Irish American
A Busy Designer
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Charlotte Miller * Charlotte likes being a designer. She believes design can make the world a better place. * She often gets inspired by traveling, however, there is barely any chance for her to travel because of her intensive schedule. * Charlotte wants to take her family to travel around the world once she can afford it.
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*Charlotte lives with her boyfriend, but she always busy with work. They don’t have much time hanging out with together. * Charlotte likes to study human behaviors. She likes to communicate with people, and to find the solutions of the problem. * Charlotte is a warm hearted person, and she often help others with their works.
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BLOCKBUSTER THE AUDIENCE
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35 year-old Business Man American
A Family Man
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Robert Yule *He loves his wife and children. Besides work hours, he spends lots of time with family. *He likes spending time with family, talking and playing card games. Even just reading the newsletter without saying any words, he loves being aside by his family. *He thinks the greatest wealth is family ties. *He cares about the growth of children’s body and mind. He often encourages his kids to try different things. He wants his kids to live full lives.
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*When it comes holiday, he likes to gather all the members of his family together and has a family vacation trip. * Because his mom suffers from depression, he always takes his children and wife to visit her. * He has a strict regiment of workouts and diet, and he goes running every day at 5 a.m.
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BLOCKBUSTER THE AUDIENCE
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STRATEGY GUIDE
26 year-old Dancer Mexican American
A Dreamer
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Violet White * Violet is very out-going. She likes making friends come from different countries. * Violet thinks the most important things in the world is friendship, so she is willing to spending time with friends and gets through different things with them. * Violet is not afraid of learning and trying new things to find her special talents. She wants to do different things every day.
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* Violet’s dream is to become an actress because she likes observing people and imitating them. * She loves the city which she lives. She loves biking around to explore the city. * She likes go picnic with her friends in a park on weekends. * Violet likes helping others. She wants to pass her positive energy to more people because she is passionate to make the world better place. * Violet enjoy sports. She does Yoga and Pilates at a set time each week.
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BLOCKBUSTER THE AUDIENCE
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56 year-old Retired Senior American
A Lonely Elderly
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Emily Garcia *She feels lonely because her son and daughter are in different cities. It’s hard for Emily to meet them all the time. *Emily reads a lot of books at home because she thinks reading can help her to get rid of daytime boredom. She wants to share her reading thoughts with others. *Emily likes the Thanksgiving Day and Christmas, because she only gets to see her children and grand children during the holiday.
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*Emily lives on a farm. There’s barely any entertainment in the area. *Emily likes to make potteries. She likes to watch animal channel and makes lovely cat and fish’s potteries. *Emily has a cat named “Cookie” because it is covered in little black spots just like a chocolate cookie. Emily loves Cookie very much, and she thinks they can understand each other. *Emily is not very talkative. She likes to keep others company.
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BLOCKBUSTER THE AUDIENCE
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22 year-old College Student American
A Homebody
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Maxim Harris *College nerd. The first thing when he opens his eyes every day is to checking out Facebook messages. *He can spend all day long on playing video games. He used to keep the record of 15 days without going out the dorm. *He doesn’t want to go out because he thinks hangout with friends will spend money which he doesn’t have much.
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* Another reason for not going out is that he is too lazy to take a shower and change cloth. *He can spend all day sleeping. *He likes net-shopping and he thinks it’s very convenient and cheap. *He thinks the internet world is much more interesting than real life.
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04 COMPETITOR 45
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Current Competitors Blockbuster used to be the biggest video rental store in U.S. The current competitors are all in video rental industry. With the development of Internet, some of the brands using virtual sales such as Netflix and Hulu, which means more convenient for the audience.
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Hulu is a premium streaming TV destination that offers hundreds of thousands of hours of the best of current season programming, premium original content, films and full seasons of hit series
Redbox Automated Retail, LLC specializes in DVD, Blu-ray, and video game rentals via automated retail kiosks.
Netflix is a website that allows you to watch movies and television shows whenever you want and as often as you want.
GameFly is an American online video game rental subscription service that specializes in providing games for game consoles and handheld game consoles.
HOLLYWOOD VIDEO was a home video and video game rental shop company.
TORRENT is a file extension for a BitTorrent file format used by BitTorrent clients. Torrent files contain text and point out the trackers for a download to begin downloading from distributors (known as seeders) and requesting clients (known as leachers).
BLOCKBUSTER COMPETITOR
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Amazon Prime is a membership program that gives customers access to streaming video, music, e-books, free shipping and a variety of other Amazon-specific services and deals.
Play N Trade is an American franchiser operating in the video game and consumer electronics space`, with an emphasis on video gaming lifestyle.
YouTube is an American video-sharing website headquartered in San Bruno, California, United States.
iTunes is a media player, media library, online radio broadcaster, and mobile device management application developed by Apple Inc.
STRATEGY GUIDE
Adjacent Competitors If customers don’t want to spend money in video rental, they might choose the following brands for watching videos or movies or playing games.
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Vimeo is a video-sharing website in which users can upload, share and view videos. It was the first video sharing site to support high-definition video. Vimeo was founded in November 2004 by Jake Lodwick and Zach Klein.
Game Stop is an American video game, consumer electronics, and wireless services retailer.
Home Box Office is an American premium cable and satellite television network that is owned by Time Warner through its respective flagship company Home Box Office, Inc.
Google Play, which was originally born and referred to by Google as the Android Market, is Google’s official store and portal for Android apps, games and other content for your Android-powered phone, tablet or Android TV device.
Showtime, is an American premium cable and satellite television network that serves as the flagship service of the Showtime Networks subsidiary of CBS Corporation, which also owns sister services The Movie Channel and Flix.
Xbox is a video gaming brand created and owned by Microsoft.
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Dailymotion is a video-sharing website based in France on which users can upload, watch and share videos. It is one of the biggest video platforms in the world, offering a mix of content from users, independent creators and premium partners.
Amazon is the world’s largest online retailer and a prominent cloud services provider.
Comcast Corporation, formerly registered as Comcast Holdings, is an American global mass media conglomerate and is the largest broadcasting and cable television company in the world by revenue.
Time Warner Cable was an American cable telecommunications company. Prior to its purchase by Charter Communications in 2016.
Vessel is a subscription video service.
AMC is an American movie theater chain.
STRATEGY GUIDE
Future Competitors In the future, Blockbuster will expand its business to a wider field. Blockbuster would like people can have a lot of fun at home and bring people closer. Followings are brands that are the model of future Blockbuster.
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Oculus is an American virtual reality technology company founded by Palmer Luckey and Brendan Iribe, founded in June 2012 at Irvine, California.
The YMCA is to build strong kids, strong families and strong communities by enriching the lives of all people in spirit, mind and body.
High Tech Computer Corporation, known almost universally by the acronym HTC, is a Taiwan based designer and manufacturer of smartphone devices.
Playstation is a video game console developed by Sony.
As a world leading gaming brand, MSI keeps raising the bar in design and innovation of its GAMING Series products and has been a long-term sponsor of global eSports teams.
CrossFit is a branded fitness regimen created by Greg Glassman and is a registered trademark of CrossFit, Inc.
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The Exploratorium is a public learning laboratory in San Francisco exploring the world through science, art, and human perception. Its mission is to create inquiry-based experiences that transform learning worldwide.
Google is an American multinational technology company specializing in Internet-related services and products that include online advertising technologies, search, cloud computing, and software.
Samsung is a South Korean multinational electronics company headquartered in Suwon, South Korea.
The SF MOMA is an art museum.
Disneyland Park, originally Disneyland, is the first of two theme parks built at the Disneyland Resort in Anaheim, California, opened on July 17, 1955. It is the only theme park designed and built under the direct supervision of Walt Disney.
Rivalfox is a media intelligence and competitor analysis solution for small and medium businesses. Its services include online press monitoring, SEO and traffic management, content marketing, and oth. Compare Pricing.
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“A family is a place where minds come in contact with one another.” 45
— Buddha
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Copyright Qianjun Wang All rights reserved Printed and bound in United States of America Design & Concept // Qianjun Wang Copy & Editing // Qianjun Wang Typefaces: Blender Pro This book was created as part of a project for Academy of Art university 79 New Montgomery Street, San Francisco, CA School of Graphic Design Nature of Identity // Fall 2016 Instructor // Hunter Wimmer
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