Today
Blockbuster is about something else but film. There is nothing exciting about
his nausea tone of yellow, dark gray carpet and white shelves, how they do not
want people to stop going if the experience today is not attractive or
entertaining?
To be
able to compete with online services like Netflix, and of course, piracy,
Blockbuster has lowered its rental rates, promotions and has extended their
days of delivery (at least here in Mexico). The competitive strategy by which
the company has been betting for the past years is just the price, which of
course has been self destructive. What they need is to face reality as it is:
in the matter of price they can do nothing against piracy or online film
renting services.
As C. K.
Prahalad said in his book ‘The Future of Competition’ in 2004 and was reinforced
by the Deloitte’s 2012 report, ‘The consumer in 2020’, the key issue of competition
is not in the price arena. The economy and market evolution are no longer suited
for this kind of strategy anymore, as both publications state, the key to achieve
customer loyalty and make our business survive (yes, ours, since this is not only
for big companies or ‘most admired brands’) is somewhere else.
Blockbuster
is not lost, can be saved. This company has to see the advantage on their side,
and focus on this key subject, but to see it requires a complete change of
perspective.
The already
achieved the price the consumers are willing to pay, the market and competition,
forced them down to do so. Now they just need to step into their customers’
shoes. Yes, they need to understand, re-learn the reality of a consumer who has
become more sophisticated and highly 'technologized'. What they need to
understand and learn is the experience of renting and watching a movie from the
perspective of their customers. It means to understand in close detail what
they do, when and mostly why. Example: In this era of interconnectivity we are
connected 24/7 because of work, reason why we are looking forward to disconnect
and not to look for a while to the evil gadget. No more computer or tini-tiny
screens. What we want to do is get away from the doomed device, phone or
computer and although you can watch movies online, nothing compares to enjoy a
good movie on DVD or Blue Ray. Yes, the experience to watch a DVD and BlueRay
is awesome. Mostly because we can watch the extras after the movie!
Considering
this, what Blockbuster needs is to take immediate and bold action, focusing
almost obsessively, on improving the quality of the store experience. On one
hand, they need to really take advantage of theme that is king in the entertainment
industry, film. Film is entertainment, excitement and a great show. You can
take out really creative concepts on the subject of 'movies' and pull out a
very cool 'stage'; also service processes need to evolve and be creative;
management of merchandise can be more entertaining.
Blockbuster
needs to continue to address the common consumer that still looks forward to
lie in front of the TV, leave the phone out there, turn the computer off, turn the
sound system on and surrender to the experience of watching a movie in the house.
They need to continue responding to those moviefans who enjoy watching the
making off after seeing the movie. Just believe that Blockbuster can gain back
their place on the film industry to which they rightfully belong.
The
solution is before their eyes, they just need to get to speed and call to action.
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