Blockbuster case study analysis

This Case Study Blockbuster Inc. According to the research group Burke, Inc. Combined with market leadership, this makes Blockbuster one of the strongest entertainment brands in the US. The main purpose of this paper is to show how Blockbuster is using information technology to gain a competitive advantage, and if it has in fact achieved a competitive advantage.

Blockbuster case study analysis

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MagnifyMoney Credit card rewards have become increasingly lucrative, as credit card issuers battle for customers. These rewards come at a steep price for banks. The New King of Rewards Spend: Chase Chase leads the pack.

Beginning inChase has led the pack in total rewards spending. With the loss of their deal with wholesale retailer Costco, American Express is offering more lucrative rewards on all its other cards. Citibank triples rewards spending. The best rewards credit cards have lucrative sign-on bonuses and rich ongoing rewards structures.

But is this sustainable? And can the credit card companies make money? MagnifyMoney conducted a national survey of people who opened credit cards in the last year. The results demonstrate that there is a method to the strategies being deployed by the largest issuers: The results might seem counterintuitive.

However, former credit card executive and MagnifyMoney co-founder Nick Clements explains: The purpose of a sign-on bonus is to encourage people to act. Most people do not wake up in the morning wanting to open a credit card — and a sign-on bonus is a way for a credit card company to encourage people to reconsider their options.

It is no different from a sale in a traditional department store. But what really matters to consumers, as these results reveal, is the ongoing value proposition.

The smartest credit card issuers are luring consumers with a big incentive the sign-on bonusand they are keeping them with strong ongoing value propositions.

And it worked because it hit every button. The massive sign-on bonus gave people a reason to apply for a card. But the ongoing reward proposition was perfectly designed for its target audience.

Blockbuster case study analysis

Those customers are going to stick around and become long-term customers. As our survey found, there are people who like to go from credit card offer to credit card offer. However, this is a small group only 3. And credit card companies are becoming much better at identifying and rejecting these consumers.

For the remaining issuers, MagnifyMoney estimated the cost of rewards. Credit purchase volume is disclosed by the credit card companies. Debit purchase volume was provided by the Nilson Report.

Actual debit interchange rates were pulled from the Federal Reserve. FDIC Call Reports for each institution were used to determine the net interchange rate across debit and credit.

The difference between gross interchange and net interchange was assumed to be the rewards spend.

Blockbuster case study analysis

Credit Card Usage Survey MagnifyMoney hired Survata to perform a national online survey of 1, adults who opened a credit card in the last year the screening question.Blockbuster Video case analysis David Cook founded Blockbuster video in , opening the first store in Dallas Texas and has grown 4/4(1).

Analysis Blockbuster and Netflix are using two different information system strategies. Blockbuster, which is a traditional retail store with a physical location focused on creating a market niche. Sep 05,  · Blockbuster’s fatal flaw wasn’t one of intelligence or capability, but a failure to understand the networks that would determine its fate.

Netflix Vs. Blockbuster | Case Study Solution | Case Study Analysis

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