Category: Essay cases,
Words: 3598 | Published: 01.21.20 | Views: 198 | Download now

Literature, Managing

Get essay

string(124) ‘ Even though the company executed online video rentals, that failed to convert its business design early enough \(Carr 2010\)\. ‘


Within the last two years, the high street has been in crisis because well-known suppliers such as Blockbusters, Jessops, JJB sport, and Comet among any others collapse into receivership. It appears to have been hit by the triple whammy of the dual dip economic depression, digital competition and the emergence of huge shopping zones. Given the tough economic instances, the importance of strategic considering and change administration cannot be sidelined.

UK retailers must transform and realign themselves to the needs of the external environment for them to still thrive.

Because well-known merchants go into supervision, there is dependence on business enterprises to rethink their very own approaches and to realign themselves to the demands of the exterior environment to be able to restore the high street to the heart of local community life. In this look at, this newspaper identifies the advantages of strategic change in the digital competitive environment. The newspaper explores on how business enterprises can realign themselves to meet the needs from the modern customer while drawing on a range of strategic supervision theories. Additionally , the newspaper provides a tiny critique of recent strategic managing research and practice.


In the the past few years, the traditional has been struck by a problems as major chains get into administration. Successful has viewed its organization slip apart to online stores such as LoveFilm and Netflix (Watkis 2013). Similarly, Jessops, JJB athletics and Peacocks have gone into administration. The biggest loss was your demise of Comet which will led to a substantial loss of up to 6900 jobs after all of its retailers were shut down down (Anon 2013). Lately, fashion chain Jane Norman became the latest casualty to into receivership.

Experts have got warned that ‘consumer recession’ is tearing through the UK and that many other chains are likely to be shut down (Hawkes 2013). The closure of established restaurants and the embrace empty products is a crystal clear indication of the declining bundle of money of Britain’s high roads (Minton ainsi que al. 2013). As such, this kind of paper determines the need for strategic change in the digital competitive environment. The paper explores on how businesses can realign themselves to satisfy the requires of the modern day consumer when drawing on a variety of proper management hypotheses.

Need for strategic change in the digital competitive environment

Given the fast changing business environment, there is requirement for retailers to get innovative for them to remain competitive. In this circumstance, innovation is not just about expanding new technology but it also comes with finding new ways of doing business in the face of transform (Afuah 2009). The convenience of online shopping on the internet and the price slashes offered by many online vendors have no hesitation contributed to the fall out on most of the famous high street stores. Consumers have got changed their purchasing behaviours, ditching their customer commitment to neighborhood shops and in turn opting for purchase online.

For traditional retailers to tackle digital disruption, they must realign their business procedures to meet the ever changing needs of the modern consumer. This kind of raises a fundamental question: just how can business enterprises realign themselves to fulfill the demands of the changing business environmentWhat sort of approach should companies employShould they apply a click and brick technique or a natural play strategyTo effectively talk about these questions, we is going to examine the case of Blockbuster video local rental chain.

Ideal management/strategic pondering key to improving competitiveness and efficiency

It is without a doubt true which the challenges facing business enterprises in the 21st century are big, messy and rich in detailed and proper threats (Konsynski 1993, p. 111). The challenges facing major restaurants have been enormous from hazards of a double dip economic downturn to risks of digital competition. Problem that is posed to management is how you can manage these kinds of changes without having swamped inside the unpredictable chaotic environmental turmoil (Todnem 2005). The answer to the question is with tactical thinking and alter management. Knowledge of strategic thinking and change management is needed even more today than previously.

As exemplified in Michael Porter’s thinking, strategy is usually an final result of rational calculation about competitive edge that a organization has pertaining to new entrants and market competitors (Pettigrew et ‘s. 2001). According to Assurer (1979), the aim of a corporate technique is to find a location where in a company can easily best guard itself via these makes and effect them in the favour. In this regard, strategic considering and change supervision has a increased role to try out in increasing the productivity and competitiveness of Blockbuster. Applying strategic insights and approaches could enable the corporation to prosper in the changing business environment.

Approach formulation

A model including the one beneath may be used by company for formulating their strategy. External appraisal may be conducted to evaluate the environment when the company runs. External evaluation includes an assessment of industry structure and how within laws, governmental policies and interpersonal preferences (changing consumer habits) affect the company (Jofre 2011). An internal evaluation is essential to identify the organizations strengths and features as well as the risks, weaknesses and opportunities available.

Given that you will find likely to be more than just one feasible strategy, it can be necessary to discriminate among the choices through analysis and selecting. A logical evaluation should be based on desired goals and procedures, competitive advantage arising from the strategy, as well as the alignment from the strategy to the needs with the external environment (Jofre 2011).

Fig. one particular Basic type of strategy ingredients (Jofre 2011)

To understand the interior and exterior factors impacting on Blockbuster, will probably be necessary to conduct a SWOT analysis from the company and also examine protégers 5 causes.

SWOT Analysis


Blockbuster has abundance of retailers which improves accessibility. The business also offers multiple outlets of delivery which includes online leases (Miller 2010). Additionally , the company offers high quality products and helps to ensure that its products will be up to date (Ferrel & Hartline 2007)


The main some weakness of Successful has been their low versatility to the changing business environment. Whilst the corporation implemented on the net video leases, it failed to transform its business model early enough (Carr 2010).

You read ‘Strategic Thinking And Change Management’ in category ‘Essay examples’ And thus of the overdue entry of online online video rental, the company has dropped most of its customers to online competitors such as Redbox and Netflix. Its dependence on brick and mortar has been its primary weakness.


Together with different high street stores, Blockbuster faces the risk of being completely phased out in the market provided the changing consumer habits and the emergence of online competitor just like Netflix and Redbox. Already more than 75 retail stores have been closed. Besides strong digital competition, the company faces the battle of an breakthrough of alternative local rental options which usually eventually supplies consumers ownership of the local rental movies. People are increasingly migrating to these new choices such as Video-on-demand and DIVX (Clark et ing. 2013)


The company has many chances with which it might use to table the perceived threats and weaknesses. The retail chain can, for example , use interactive media and other successful mass media outlets to regain customer loyalty which has been lost to its on the net competitors in the last few years (Clark et al. 2013).

The retail sequence also has a fantastic position in the value sequence. Blockbuster is actually a large organization which makes agreements with key suppliers, makers and suppliers of video games and movies. Given its size and the great quantity of its purchases, the business is able to negotiate for affordable prices than their very own competitors, offering them with an advantage in the competitive business environment (Jordan 2011). Most recently, Netflix increased it is monthly registration rates. Successful may take this kind of to their advantage by targeting disrguntled Netflix customers.

Further, there is a large opportunity obtainable in the online market. The online online video rental industry has been gaining demand considering that the emergence of Netflix. Together with the growing require, Blockbuster gets the opportunity to move in and create its presence in the online video rental marketplace.

Blockbuster’s life routine strategy

Fig. 2 below reveals Blockbuster’s strategic history. This comprise of several broad phases: start-up, expansion, maturity and decline. The life-cycle as well shows the impact made by endeavours to add to the initial strategic position (Anon 2013) and a revision made when the initial strategy turns into unsustainable to be more exact threatening.

Fig. 2 Model illustrating Blockbuster’s life-cycle (Anon 2013)

Porter five forces

Danger of potential new entrants

While using current digital competition specifically from Netflix, Lovefilms and Redbox, the video rental marketplace does not appear appealing. The movie rental market is older and the firm is currently at the height of product life routine where a fall occurs (Clark et al. 2013). Pertaining to the company to stay to prosper in the industry, it should try to outshine its rivals by concentrating on disrguntled Netflix customers through offering lower prices and concentrating on growing their very own online local rental subscriber bottom.

Bargaining power of potential buyers

Customers are going benefit from the competition as this increases their bargaining electrical power. As Successful and Netflix battle for market share, they will utilize techniques of price lowering which finally benefit the buyers (Janjua 2012).

Threat of substitutes

With strong competition in the Market, there is a potential threat of substitute goods. In fact , since Netflix and Blockbuster challenge it out, other folks are increasing ground in substitute offerings as seen with Video-on-demand which has grown at double digit rates before two years.

Bargaining power of suppliers

Suppliers will probably have significantly less purchase electricity especially given the purchase of Movielink. If this acquisition leads to even more online downloads available, the company will have little requirement for plastic instances and Dvd disks and as such, the bargaining power of suppliers will probably reduce (Janjua 2012).

Intensity of competitive rivalry

The rivalry available in the market is definitely large. Already, Blockbuster has lost many of it is customers to Netflix. The company must transform and put into practice strategies that might sway back customers.

How Successful can realign itself to the needs in the external environment

The corporate strategy would require the organization to capitalize on progressive emergent technology to provide this with proper breakthroughs in the competitive organization environment, whilst not losing look of its in-store operations (Fryman 2010). As such, a click and brick strategy would be far better for the organization. Blockbuster need to realigns it is business processes with THIS and use it in their favour.

In realigning their very own business operations with IT, the company need to access the strategic alignment model regarding purpose, projects, project management, infrastructure and goals that may create a paradigm shift (Carr 2010). The realignment procedure must permit the company to embrace on the net opportunities which in turn Netflix and Redbox have previously perfected.

Realigning business process with IT (Kalakota 2011)

Whilst Blockbuster seems to have currently embedded IT into their main business model as seen with the total gain access to program which enhances online customers’ experience, this has not helped much as the corporation has lost most of the customers to online retailers including Netflix and Lovefilm. The failure by the company to quickly adapt to the changing business environment and consumer habits is suggested to have recently been the main problem. The company had taken long to remodel its business model and when it did, the competitive landscape had recently been fundamentally improved and the traditions model demolished by the fresh platform style (Carr 2010). The company needs to conduct a tremendous marketing campaign that ought to focus on growing their on-line rental reader base.

The corporation could also type an alliance with mobile phone companies and arranging with these companies to let customers to stream films on their mobile phones. This would be the considering that individuals have their cell phones all the time. With larger mobile phone screens, clients would be able to stream movies by anywhere which include in the subways, bus areas and even at workplaces. Looking at could be per subscription or perhaps pay-per-view (Clark et al. 2013).

One other strategic approach would be to partner with airline companies in order to put into practice a green box software at airfields such as the Redboxes at Burger king (Jordan 2011). The blue box system would permit travelers to pick up a movie by one air-port and to returning it to a different airport or perhaps blockbuster retail store.

Further, the corporation should focus on strengthening buyer relationship management by employing a business technique that maintains relevant benefit across every its customer groupings and introducing new customer idea initiatives that could provide them with an edge over all their competitors (Afuah 2009).

Additionally , Blockbuster should implement a great ERP program that will permit it in order to their inventories. The system may be implemented incrementally from one region to another. This will vastly reduce the time and duplications that the company at present has, thus increasing productivity. Currently, can be to check out their particular movies coming from different blockbusters, they are necessary to register with each retail store individually. Considering the fact that the ENTERPRISE RESOURCE PLANNING system combines data and allows for writing of information across multiple departments, this may profit the company through quicker control of requests and more quickly shipments..

Whilst recognizing the necessity to realign business process with IT, the organization should not to get rid of sight of its in-store operations. Customers of today have grown to be savvier and are increasingly making the change of their own buying experience (Deloitte 2011). Retail stores must similarly evolve for being part of the complex relationship between retailer and customer by providing new ways of experiencing breadth and depth of selection (Deloitte 2011). In-store cinema and a ‘touch and feel’ knowledge around the product item are able to sway more consumers back to shopping in high roads. Provision of personalized companies and guided shopping encounter should equally encourage even more consumers to go back for leasing services through the stores.

Critique of recent strategic managing research and practice

But while strategic thinking and alter management provides a greater part to play in resuscitating traditional retail stores, this sort of practices are generally not always good. For example , as the ERP system may improve the efficiency and effectiveness of management decisions, failure of such systems may negatively impact on the corporation resulting in cost overruns and provide chain concerns (Morgan & Smith 2002).

Moreover, a technique formulation that positions a strong in a market may reduce a firm’s perspective (Mintzberg ainsi que al., 1995). That is, this sort of a strategy may well overlook prospect if they are just concentrating on a certain group of industry. Another critique is that tactical planning devices are designed as top-down planning systems and therefore strategic decisions are only relegated to leading management (Morgan & Johnson 2002). It indicates that the preparing systems in order to fulfill only the goals and interests from the top managing and not those of the organization.

Ideal management will be based upon rational making decisions. But since most of the time we have incomplete data, fully realistic decisions may not be possible and alter process may result in adverse effects (Jofre 2011). Hence whilst change administration may be designed at increasing the firm’s adaptability, constructions developed to market rationality may well have opposite effect (Jofre 2011). Nonetheless, it is obvious that high street retailers need to realign their very own business operations to meet requirements of the changing business environment.

Bottom line

There is no doubt that the previous years have observed a crisis as major traditional chains such as Blockbusters, Jessops, JJB sport, and Comet among many others enter into administration. The collapse of well-known retailers into receivership is a clear indication of any declining lot of money of Britain’s high roadways. All these stores which have eliminated into operations do share certain characteristics. They all generally have a significant number of stores and still have all had difficulty establishing to the changing business environment and full habits.

For anyone retailers to keep to prosper in the industry, they must reinvent and realign themselves to the needs of the external environment. For example , Blockbuster must realign the business techniques with IT and use it inside their favour. The company should adopt a simply click and brick strategy. That may be, the company need to embrace on the net opportunities without having to lose sight of its in-store operations. The corporation could also kind alliances with cell phone firms to allow customers to stream movies prove cell phones. The business may as well partner with flight companies and put into action a green box courses at the air-ports such as the Redboxes at McDonald. The company may also implement ENTERPRISE RESOURCE PLANNING systems to improve their effectiveness and effectiveness of supervision decisions.

It is retail stores should also evolve and should be able to offer customers with new ways of experiencing breadth and interesting depth. In-store theatre and a ‘touch and feel’ experience around the product item should be able to sway more consumers to shopping in high roadways. Provision of personalized solutions and led shopping encounter should evenly encourage more consumers to return for leasing services in the stores.


Afuah, A., 2009. Proper innovation: fresh game strategies for competitive advantage. University of Michigan. NewYork: Routledge writers

Anon 2013. A strategy cycle: Blockbuster. [Viewed upon 22nd May 2013] available coming from


Anon, 2013. The death from the high street ” or the birthday of a new sort of retailer[Viewed on nineteenth May 2013] offered from http://www.enterprisenation.com/blog/the-death-of-the-high-street-or-the-birth-of-a-new-kind-of-retailer/

Janjua, A., 2012. Make it a blockbuster night time. Blockbuster

Carr, A., 2010. Blockbuster CEO, Jim Keyes, on competition from Apple, Netflix, Manufacturers, and Redbox. [Viewed on nineteenth May 2013] obtainable from http://www.fastcompany.com/1656502/an-interview-with-blockbuster-ceo-jim-keyes-part-ii

Clark, M., McKelvey, T., Robinson, B., Sampson-Rasberry, H., 2013. Successful analysis. [Viewed in 20th May possibly 2013] available via

Deloitte, 2011. The changing face of retail. The store of the future: the brand new role with the store in a multichannel environment. Deloitte LLP.

Ferrell, To. C. and Hartline, Meters., 2007. Web marketing strategy. 4th copy. Cengage Learning publishers

Fryman, 2010. Transitioning business models: Are there any businesses that successfully transitioned via brick-and-mortar to completely online[Viewed on 19th May 2013] available from http://ask.metafilter.com/167587/Transitioning-business-models

Hawkes, T., 2011. Her Norman is high street vogue victim. Sunlight. [viewed on eighteenth May 2013] obtainable from http://www.thesun.co.uk/sol/homepage/news/money/3663189/Fashion-chain-Jane-Norman-becomes-the-latest-high-street-casualty.html

Jofre, S., 2011. Strategic management: the theory and practice of technique in (business) organizations. University or college of Denmark

Jordan, A., 2011. The consequences of Netflix and Blockbuster Tactics on Firm Value. Claremont McKenna College

Kalakota, 3rd there’s r., 2011. ‘Brick, Click and Mobile: multi-channel strategies for satisfying your consumers’. In: Mbusiness: the race to mobility. [viewedd on 20th May 2013] available from www.ebstrategy.com

Konsynski, N. R., 1993. ‘Strategic control in the prolonged enterprise’. IBM Systems Record, vol. thirty-two (1), pp. 111-142

Callier, Y., 2010. Blockbuster examination. [Viewed on 19th May 2013] readily available from


Minton, A., Skelton, Deb., Sennett, L., Umunna, C. and Roberts, E., 2013. How can all of us save the streetThe Guardian. [viewed on eighteenth May 2013] readily available from http://www.guardian.co.uk/commentisfree/2013/jan/15/how-can-we-save-high-street

Mintzberg, H., Quinn, L. B. and Ghoshal, H. 1995. The Strategy Procedure (European Edition), London: Prenctice-Hall.

Morgan, D. and Johnson, E., 2002. Contemporary problems in strategic management. Kagiso publishers

Pettigrew, A. Meters., Homas, H. and Whittington, R., 2001. Handbook of strategy and management. Sage publications

Assurer, M. lates 1970s. ‘How Competitive Forces Form Strategy’, Harvard Business Review, vol. 57 (2): 37-145.

Shrivastava, S., 1986. ‘Is strategic supervision ideological? ‘ Journal of Management, volume. 12 (3), 367-377

Todnem, R., 2005. ‘Organizational change management: a critical review’. Record of Alter Management, volume. 5 (4), 369-380

Watkis, N., 2013. What may marketers learn from the spike of high avenue store closures[Viewed for the 19th May possibly 2013] available via


< Prev post Next post >