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    Assignment - 4

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    Kaung Zar Ni
    Video Champ is a small, Melbourne-based video rental company with only one store, while Blockbuster was a large, global company with over 9,000 stores at its peak. Blockbuster declined due to competition from Netflix, Redbox, and video-on-demand services. Though smaller, Video Champ has survived due to its loyal local customer base and ability to quickly adopt new technologies like barcoding. While Blockbuster had a much larger collection and distribution network, Video Champ had more personalized customer relationships. To remain competitive against online options like Netflix, Video Champ needs to expand its online and mobile offerings.

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    Assignment - 4

    Uploaded by

    Kaung Zar Ni
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    Video Champ is a small, Melbourne-based video rental company with only one store, while Blockbuster was a large, global company with over 9,000 stores at its peak. Blockbuster declined due to competition from Netflix, Redbox, and video-on-demand services. Though smaller, Video Champ has survived due to its loyal local customer base and ability to quickly adopt new technologies like barcoding. While Blockbuster had a much larger collection and distribution network, Video Champ had more personalized customer relationships. To remain competitive against online options like Netflix, Video Champ needs to expand its online and mobile offerings.

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    Video Champ is a small, Melbourne-based video rental company with only one store, while Blockbuster was a large, global company with over 9,000 stores at its peak. Blockbuster declined due to competition from Netflix, Redbox, and video-on-demand services. Though smaller, Video Champ has survived due to its loyal local customer base and ability to quickly adopt new technologies like barcoding. While Blockbuster had a much larger collection and distribution network, Video Champ had more personalized customer relationships. To remain competitive against online options like Netflix, Video Champ needs to expand its online and mobile offerings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views1 page

    Assignment - 4

    Uploaded by

    Kaung Zar Ni
    Video Champ is a small, Melbourne-based video rental company with only one store, while Blockbuster was a large, global company with over 9,000 stores at its peak. Blockbuster declined due to competition from Netflix, Redbox, and video-on-demand services. Though smaller, Video Champ has survived due to its loyal local customer base and ability to quickly adopt new technologies like barcoding. While Blockbuster had a much larger collection and distribution network, Video Champ had more personalized customer relationships. To remain competitive against online options like Netflix, Video Champ needs to expand its online and mobile offerings.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
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    Video Champ and block buster comparative analysis

    Block buster is a provider of home movie and video rental game which provides rental services
    through video rental shops, DVD-by-mail, streaming, video on demand, and cinema theatre
    .Competition from the Netflix mail-order service, Red box automated kiosks, and video on
    demand services were the major reason behind the down fall of Blockbuster (Kew & Stredwick,
    2017)

    The main difference between Video champ and blockbuster was that Video champ is a
    Melbourne based video rental company that has a shop only in Melbourne while Blockbuster
    was company which had its presence all over the world and its peak time had over 9000 stores.
    The backing of Blockbuster was much larger than that of Video Champ. Also Video Champ was
    able to survive due to its loyal customer base especially around the Doncaster Region who are
    used to renting movies from the company and find it a convenient option unlike Block Buster
    which had shut shop in many parts of Australia (McGrath, 2010).

    Video champ being a small company in front of Block Buster had a personalized relationship
    with its customers but the collection that was offered by Block buster was much larger mainly
    due to its distribution network which was extremely large and it stocked movies and video in
    many other languages compared to Video Champ which has content only in English, Spanish,
    French and Chinese. Also Video Champ was quick in adapting newer technology; like bar-
    coding and RFID tagging in its system compared to Block Buster which used this technology at a
    later stage (Sylvia, 2006).

    Conclusion

    In conclusion it can be said that the video rental company is experiencing a decline in growth
    and its sales are lesser than the previous year which is undesirable for any company. Video
    Champ has managed to survive for so long due to its operational efficiency and customer base
    but due to the advent of new companies and technologies in the industry, the survival of the
    video rental companies have become increasingly difficult. There are a number of competitive
    factors which threaten the distance of the company and it is important that it updated its strategy
    in order to maintain its position in the markets. Companies like Netflix have completely
    disrupted the market with its online rental schemes and it is important that Video Champ too
    comes up with similar services where it can retain its customer base and ensure that it maintains
    its position in the market.

    It is recommended that Video Champ should enter the online rental business and give services to
    customers which currently no other provider is giving like free delivery of Blue Ray and hi tech
    version of the videos which the company stocks at their residence which can be enjoyed by
    customers. The company can also tie up with distributors and launch a new vertical which
    involves gaming and other entertainment through the introduction of a phone application.
    Overall the company has ensure a static advantage in the industry.

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