Sample Business Research Paper on Blockbuster Inc. Bankruptcy

Blockbuster Inc. Bankruptcy

BlockbusterInc. failed due to missteps in marketing and adoption of modern technology. Although Blockbuster was a market leader in the rental video at the end of the 20th century, these missteps resulted in the failure and bankruptcy of the company (Lucas, 2012). At the beginning of the 21st century, many homes in the US started accessing internet services as compared to previous decades where the internet was preserved for businesses. The internet-enabled consumers to access various services such as marketing information and video streaming through the internet since the internet was convenient (Lucas, 2012). Blockbuster failed to adopt new technology such as the internet to market and sell its products. The company management believed customers would still walk into Blockbuster stores to get movies. This miscalculation contributed to the bankruptcy situation of Blockbuster Inc.

Blockbuster failed to study the changes in the rental video industry. Apart from product availability, consumers considered other factors such as price and ease of access to rental videos.  While Blockbuster continued to market and lend the videos through retail stores, competitor companies such as Netflix and Red Box used modern technology in marketing and providing video rentals (Lucas, 2012). Netflix marketed its products through the internet and delivered rental videos to customer homes. Netflix also allowed customers to stream some movies through the internet without paying extra money (Lucas, 2012). Conversely, RedBox opened rental kiosks in groceries across the US and offered rental movies at a cheap price of US$1 per night (Lucas, 2012). The two companies intensified competition in the rental movie industry and ate into the market share of Blockbuster. The ease of access to rental videos and at a cheaper price from competitor companies resulted in the poor performance of Blockbuster in the market. Since new companies increased competition in the market, Blockbuster should have developed new marketing strategies to help overcome stiff competition from the new companies. The marketing strategies are effective in expanding the market share for Blockbuster.


Lucas, H. C. (2012).The Search for Survival: Lessons from Disruptive Technologies. New York:      ABC-CLIO.