Movie Analysis The Movie Rental Company Essay - 948 Words

Blockbuster was a movie rental company that suffered through lackadaisical leadership, missing out on a golden opportunity to buy out the company that would one day run it into bankruptcy. David Cook opened the first Blockbuster in Dallas, Texas in 1985. He had seen the potential in the movie rental industry when he had researched into acquiring a video store franchise. He laid the groundwork that would one day lead Blockbuster to becoming a rental movie empire that. He built a $6 million distribution facility that made it possible for stores to pop up in instantly. The distribution facility allowed for a â€Å"store† to be sent out within 24 hours. The goal was to be able to send three stores out per day; everything the store would need was included in this shipment. A Blockbuster store was home to more than 8,000 movies, the distribution center allowed stores to open very quickly. John Melk and Wayne Huizenga two men who had worked together at Waste Management bought a controlling interest in Blockbuster in 1985. Huizenga, a well-known entrepreneur, bought 60% of Blockbuster shares for $18.5 million dollars. Cook would stay on for a couple months, but eventually disagreements over the direction of the company would lead him to resign. Cook admits that under Huizenga’s leadership Blockbuster reached a level he never could have gotten it. Melk and Huizenga quickly got to work building Blockbuster into a national chain through franchising opportunities and acquiring theShow MoreRelatedEssay about Redbox Case Analysis1287 Words   |  6 PagesCase Analysis: Redbox Stefan Marroquin 31 January 2012 Strategic Management Dr. Mark S. Poulos Introduction Redbox is a leading provider of movie and game rentals in the Nation. Redbox offers self-service DVD rentals through over 22,400 kiosks throughout the United States, Puerto Rico, and the United Kingdom. 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