In what ways did blockbuster achieve better strategic fit than local stores

Blockbusters achieve a better strategic fit than local stores by having large stores, convenient locations, and more inventory. Blockbusters also offer customers more movie choices and more complete product availability.

EXPLANATION  

Blockbusters started its business model by having a larger storefront. They built shops in locations with high levels of traffic. Blockbusters also built stores with a size larger than the existing local store rental shop. With 5 dollars, customers can rent movies for five nights.

Given that local shops have much smaller stores, they only provide a few hundred movie titles. It is very difficult for them to provide the availability of these films given the high cost of inventory (VHS tapes are sold for 60-80 dollars each) plus the cost of renting space or locations that are so expensive.

Blockbusters came and built a bigger store in a strategic place.  

They can serve requests in a wider area than local shops. Larger stores allow Blockbusters to provide greater variety and better availability with local stores, although local stores are often cheaper. With a more complete supply of films, larger stores, and strategic locations, Blockbusters can meet the demand of film connoisseurs better than local stores.

LEARN MORE

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

- What year did Blockbusters movie Independence Day come out?

Keyword: Blockbusters, film rental store, business.

Subject: Business

Class: College

Subchapter: Blockbusters  

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