SWOT Analysis of Blockbuster


Blockbuster inc. is a US company which offering a chain of DVD, VHS, video games rental stores and blue-ray. The company is now a days under the law of chapter11 bankruptcy (US code of law). The company has 5000 stores in USA and other 17 countries in Jan 3, 2010. Its head quarter is located in Downtown Dallas, Texas. Blockbuster has certain competitors in the market like Netflix etc, due to which the company faces major losses in its profit.

SWOT analysis

In order to analysis the overall factor which can affect the organization SWOT analysis is done. SWOT analysis helps the organization to know the internal as well as external factors which can affect the organization. The internal factor includes the strength and weakness of the company while the external consist of opportunities and threats.


• Blockbuster provides DVDs and other related staff on hourly bases thus it has well control over their customer as the things are easily available to them in the market.

• The company produces a well quality products, also the movies and games which they are provide in updated on regular bases the user get full up to date version of the products as soon as it releases.

• The company provides it products through multiple ways in order to deliver recent and updated products to the customer.

• As the company provides its product to almost all the world thus it controls the global market.

• Blockbuster has fixed and low prices for its products.


• One of the weak point of the block buster is that it has no control on shipping expenses which is one of the main and most important expenses of the organization

• The organization has very limited firm with the movie player.

• Blockbuster has lack of planning in countries like Africa which is a huge market and can help in the profit of the company a lot.

• The company is facing some problems in funding and proficiency.


• The company needs to develop some thing new in the market if the company can do so the at least develop products similar to their competitors like Netflix.

• The needs to improve the quality of its online products as in recent time the customer valued online product more then others.

• The company has a very good market demands in which the product sales is almost unpredictable for example in the summer holidays the company demand reaches its top.


• The company is facing a lot of threats from piracy which damage the profit of the company to a very large extent.

• As the company has a lot of competitors thus it has to improve its quality regularly if the company is failing to do so then its will loss its image.

• The company can also face problems if the movie failure cause or due to some reason the movies is not release on time.

• The good employee may resign which can cause huge defects to the company.


1. Gail DeGeorge. The Making of a Blockbuster: How Wayne Huizenga Built a Sports and Entertainment Empire from Trash, Grit, and Videotape. Somerset, NJ: John Wiley & Sons Inc. 1995. 354pp.

2. Missing ISBN/Catalog #: The Magazine of Fantasy & Science Fiction, June 1982 (Jun 1982)

3.A twentieth-century American filmmaker. His popular, widely seen works range from fantasy (E.T.) and adventure (Raiders of the Lost Ark) to serious drama and historical epics (Schindler’s List, Saving Private Ryan).

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