CASE ANALYSIS

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CASE ANALYSIS

• Presented by Team 11
• KYLE RUSTEN
• HOLLY STEINKE
• TONY CASTRO
• AARON HARDESTY
• MATT VLACH

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Competitive Strategy

• Cost/Value
• Ease of Use
• Availability of Titles
• Selection
• Fast Delivery
• Convenience

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• Performance
• Overview

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Liquidity
2002 2.65 2003 2.2 Industry 2.13
3 Safe 2.6 - 3.0 Probably Safe 1.9 - 2.5
Probably Unsafe Below 1.8 Unsafe
2002 2.78 2003 3.12
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Solvency
Net Cash Flow Operations 2001 4,847,000 2002
40,114,000 2003 89,792,000
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Operating Efficiency
Return on Assets 2002 -6.9 2003
3.9 Industry 8.3
Sales to Asset Ratio 2002 1.17 2003
1.55 Industry .85
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Capital Structure
Return on Assets 3.9 Cost of Debt
5.0
Assets per 1 equity 2002 1.46 2003
1.56 Industry 1.99
Net Income per 1 equity 2002 -23.4 2003
5.8 Industry 15
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Survey 1 Results

• Top Companies
• Blockbuster
• Hollywood Videos
• All The Best Videos
• Albertsons
• Netflix

• Top Attribute
• Location
• Selection
• Availability
• Convenience
• Familiarity
• Price

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Customer Perception

• Strengths
• Price
• Convenience
• Environment
• Weaknesses
• Location
• Familiarity

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• Strategic Plan
• Recommendations and Targets

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Customer Targets

• Kiosks
• Television Advertisements
• Increase Inventory as Memberships Increase
• Movie Download Service
• User Friendly Website
• Free Trial Length
• Decrease rental Fees

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Internal Targets

• 1000 Kiosks Nationwide
• 1000 30 second Television spots by years end
• 4 to 1 ratio of movies in inventory to members
• 1000 downloadable movies available by years end

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Internal Targets

• 15 million website hits a month
• Increase retention rate of Free Trial users
• Reduce Membership fees

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Financial Targets
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Financial Targets (cont)

• Current value of firm 627,665,000
• Value of firm if all targets met 2,346,446,000
• Total increase in value 1,718,781,000

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• Thank you, have a nice night.