Improving Blockbusters Operations

1
Improving Blockbusters Operations

• Jeremy Hays
• Blair DeHart

2
Intro to Blockbuster

• Blockbuster Mission to be the global leader in
  rentable home entertainment by providing
  outstanding service, selection, convenience, and
  value.
• Blockbuster first started providing in home
  entertainment in 1985 in Dallas, Texas.
  
• Blockbuster strives to be a family oriented
  store.
  
• Blockbuster stores are either a part of a
  Franchise or a corporate store.
  

3
Corporate Vs. Franchise

• Corporate
• 60 of stores
• Managers do not have control of store
• Rent their Videos
• Receive new videos on Monday

• Franchise
• 40 of stores
• Manager has more freedom and control over store
• Buy their videos from distributors
• Receive videos on Friday

4
Problems with Blockbusters Operations

• Franchises receive their new release videos on
  Fridays.
  
• Tuesday is release day
• Delivery comes at most busy time for Blockbuster
• No room for error
• Creates stress and angers employees

5
Problems with Blockbuster Operations

• The layout of the Blockbuster in Harrisonburg
• Shelves are too high and crowded
• Not a good video game center
• Organization of videos in the store
• Storage room

6
Problems with Blockbuster operations

• Store Maintenance
• Hassle for employees.
• Turn off for customers
• Should outsource with a cleaning company
• Outsourcing demands trust

7
Improvement to Operations

• Store In Store
• Create a larger consumer base
• Related products (Impulse purchase)
• Share responsibilities Liabilities
• Better Recognition for stores

8
More Suggestions

• Adult entertainment section
• Make Midnight not noon return time
• New release video games should only be 3 day
  rentals not 5

9
Conclusion

• No matter what changes come from Blockbusters
  operations it will always be a family oriented
  store.
  
• Employees overall are satisfied with Blockbuster
• Blockbuster is extremely successful, but could
  still improve their operations in ways that would
  benefit the company