1. How aggressively should Blockbuster move into selling video game players, games, and accessories versus its past focus on rentals? Why do you think it was slow to enter the DVD sales market?

    I believe Blockbuster should aggressively move into selling video game players, games, and accessories in order to have a part in the capitalization of the game industry. Selling these products would also allow Blockbuster to redefine or expand their original core business and in subsequence stay at the same pace as their competitors. I believe Blockbuster was slow to enter the DVD sales market for the same reason it was slow to enter the VHS sales market. Their original core business emphasized on renting media items, not selling. This strategy was met with great success and consequently Blockbuster developed a lucrative habit of renting videos and became very comfortable with this. I believe Blockbuster became stuck in the unfreezing stage of change because they failed to see the need for change when the video rental market became soft. Video selling was uncharted territory for Blockbuster and they kept with their old habit of renting VHS rather than selling, and this is one of the reasons why I think Blockbuster was slow into entering the VHS sales market. The failure to see the need for change also explains one of the reasons why Blockbuster was slow to enter the DVD sales market. Once again, this was yet another uncharted territory for it which did not guarantee success like its old habit did. Blockbuster allowed its competitors to capture a large portion of the DVD sales market before they were able to undo their old patterns of behavior.

2. Has the Blockbuster concept lost its novelty in the U.S. market? Can a subscription strategy help revive it?

    I do believe that the Blockbuster concept has lost its novelty in the U.S. market. The advancement of technology has allowed consumers to rent and purchase media items, such as videos, DVDs, and games, without ever leaving the luxury of their own homes. With the hectic schedules of Americans today, this strategy allows people to cut one more errand or one more stop off because they can still purchase their entertainment without ever stepping into a store like Blockbuster. I believe a subscription strategy would help revive Blockbuster's position in the U.S. market. Like its competitor Netflix whose strategy is centralized upon subscription, Blockbuster customers would be able to pay one flat fee per month and rent an unlimited number of DVDS without leaving their homes and without running the risk of lates fees. A subscription strategy would allow Blockbuster to stay at the same pace as some of it competitors instead of being outdone by them and falling behind.

3. Should Blockbuster push harder into international markets, where digitial-on-demand technology is not yet available?

   I believe it is a good idea for Blockbuster to participate in international markets, where digital-on-demand technology is not yet available, but I do not think it should necessarily push harder into it. I think Blockbuster should focus on developing new and effective strategies in their domestic realm, since this is where it will more than likely have greater profits in. At some point, the international markets that have not matured in digital technology yet will eventually do so and Blockbuster will find itselfs in the same position it was in in American in the early to mid nineties. It is a good and profitable idea for Blockbuster to think internationally, but they should take care and stablize their home ground first.

4. In what other ways can Blockbuster try to redefine its core business and pursue other options in entertainment or home electronics? Or do you believe such a strategy would fragment the business?

     I do believe that if Blockbuster tried to redefine its core business, it would run the risk of fragmenting the company as a whole. However, I think the benefits of adopting new and effective strategies would by far exceed the consequences of fragmenting the business. In order for Blockbuster to keep up with its competitors, they have to think out of their comfortable zone. This is a definite risk because success is never guaranteed, but in an industry like the one Blockbuster is in, risks are things that need to be embraced. I think Blockbuster could redefine its core business by not just specializing in one or two things, like do did with VHS and how they're doing now with DVDs. I believe Blockbuster should specialize in all media and entertainment forms: TVs, DVD players, game players and their corresponding accessories, and anything that the entertainment manufacturing market has to offer.