Block Buster and Circuit City

Block Buster and Circuit City

  • Submitted By: abdule1
  • Date Submitted: 11/04/2009 10:03 AM
  • Category: Business
  • Words: 804
  • Page: 4
  • Views: 391

The companies I chose are Blockbuster and Circuit City
1. Blockbuster announced it would be downsizing and it would close 282 of its 5,000 U.S. retail stores by the end of the year, about the same number it closed during 2006. While that may be seen as a significant shift for the company and the leading edge of a move to a more Web-based approach, Blockbuster has said the closings are the result of a continual review of store performance and subsequent adjustments (Reuters, 2009).
2. Due to lack of consumer spending and overall economic downturn during the late 2000 recession, Circuit City began liquidation of its remaining stores on January 16, 2009, and they were all closed on or before March 8, 2009.
Problems of Similarities with Global Communications
All three companies were on top of the market until their competitors started coming up
with new ideas. They fought hard to stay in the race.


1. Blockbuster is an American chain of DVD Blue-ray and video game rental stores. Blockbuster is the leader in the movie rental industry. With the merger of Hollywood Video and Movie Gallery, that leaves on two major competitors in the industry, Netflix and Red-box. Due to increasing pressure from Red-box, Netflix Inc. and its own debt problems, the video rental giant is doubling the number of stores it is likely to close by the end of next year. Netflix’s DVD-by-mail service launched a decade ago and has hit Blockbuster particularly hard as more households have embraced the concept of picking out their rental choices online before the DVDs are delivered through the mail for a monthly subscription fee that usually runs from $9 to $17. In the last two years, Netflix lured even more customers by building up its library of movies available for instant viewing over high-speed Internet connections. Netflix now has 10.6 million subscribers and, unlike Blockbuster, is becoming more profitable. The Los Gatos-based company earned $55 million...

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