Case Study : The Demise of Blockbuster
SCMG610 – Intro to Supply Chain Management
Axelle Sterkendries
Christabell Offei
Blockbuster Inc. was a very successful movie rental company that dominated the
market in the 1990’s. By offering a wider selection of titles year-round at a competitive price,
it easily redefined the industry. However, its success did not make the company untouchable.
Blockbuster Inc.’s competitors, Netflix and Redbox, challenged it by providing a wider
variety of titles and a much lower cost, eventually forcing Blockbuster to shut down for good.
In its earlier days, Blockbuster Inc. was able to take advantage of the highly
fragmented market. As most movie rental businesses were family operated, their selections
were modest and the cost to rent was high. This allowed a big company like Blockbuster to
