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Blockbuster Inc. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Blockbuster Inc.

Blockbuster is a provider of rental movie and game entertainment. The company operates in the US, Europe, Latin America, Australia, Canada, Mexico and Asia. The company is headquartered in Dallas, Texas and employs 58,561 people; this figure includes full-time, part-time and seasonal employees.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Global network of stores
  • Multiple delivery methods
  • Enhanced product availability

Weaknesses

  • Downgraded default ratings
  • Breach of privacy lawsuit

External

Opportunities

  • Enhanced customer experience
  • Launch of BLOCKBUSTER OnDemand
  • Growth through partnerships

Threats

  • Slumping movie rental market
  • Competition from piracy
  • Increased minimum wages in the US would impact profitability
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