Blockbuster analysis

Blockbuster Inc. is an American company that is involved in the music, movie and game rental business. It is one of the leading companies in the world with video and game rental supply chains of DVD stores. The company has its headquarters in Dallas, Texas. Blockbuster Inc. was founded in 1985 by a 29-year man, David Cook who helped it come into the public limelight before its management was taken over by Joe Mitchell who then became the CEO of the company five year later. The company has continued to grow into a multi-billion business and even took part in a joint venture with Viacom cooperation in 1994 worth a price of more than 8.5 billion dollars. With good competitive strategies, the company has been able to maintain its lead in the DVD video rental market and provision of home video games not only in the U.S but also in other parts of the world. Blockbuster has been able to engage in this business and even make diversity especially on game entertainment markets. It operates primarily in the U.S, U.K and Canada with a huge number of employees in all the countries it operates. 2007 estimates indicate that Blockbuster has employed approximately 67,500 people in the U.S alone with revenue of more than 5.6 billion dollars as at the end of December, 2006. With an operating profit of $80 million, the company is able to strategically meet the needs of the market.