Electronic Arts: Blockbuster Strategy
The purpose of this paper is to write an Internal Analysis on the Electronic Arts, the Blockbuster Strategy and identify the problems and concerns of the company as well as company resources and the company's competitive advantage. Further to pinpoint the company's business strategy, assess the company's performance and offer an possible recommendations for the addressing of said problems.
Blockbuster, a major video rental chain has a strategy that appears like that of a "specialty game store" and this has opened up an entirely new marketing and sales field in the industry. In the quarterly earnings report for June 30, 2003. A sales of $58.5 million was reported by Blockbuster and that was incidentally, triple the sales for the same quarter in the preceding year. A total of 21.3% of Blockbuster's sales in merchandise was attributed to video game sales. Business was not only good for Blockbuster but for other video game retailers Movie Gallery and Hollywood Video. During that same quarter Hollywood Video reported an 11% increase from direct sales of games.
The factor of having more than "just video rentals" the "blockbuster" strategy offers a:
Store within a store" is key to success in this channel....these rental chains are making sure that gamers understand that they are serious about games," (Arioco, J 2003)
Competitive Advantage:
CEO and Chair for Blockbuster, John Antioco stated that the Blockbuster chain has decided on plans in opening...
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