Blockbuster på et redefineret marked

Abstract

The entrance of several Video-on-Demand providers on the former purely physically based video-rental market has changed the basis for competition fundamentally. With this in mind, this project examines the video-rental chain Blockbuster Denmark’s possible ways of positioning themselves and handling the changed market, were they used to be uncontested market leaders. The analysis is divided into a two-part analysis. With an initial branch analysis based on Michel E. Porters Five Forces, the PEST-model and Everett M. Rogers’ views on diffusion of innovations, we wish to chart the changed market and the consumer’s relationship towards it. Following this we turn to Karl E. Weick’s concepts of sensemaking and mindfulness. We use these concepts to explain the relationship between the sense-making processes of Blockbuster and their consumers, and finally establish a flexible strategy for Blockbuster to handle the changed market in the future. We conclude that Blockbuster still, and in the near future have a strong position on the video-rental market. But in the future it will be necessary for them to change their strategy and organizational culture, to fit the changed market. From our analysis we recommend that they continue servicing the physical-based market, create a VOD- solution and change their organizational culture to better cope with an unpredictable future on a dynamic technologically based market.