Measurement Strategy

Measurement Strategy

Blockbuster faces many new external challenges and opportunities with new competition, increased technological growth, and entering in new major markets. Blockbuster is constantly implementing new strategies and plans that will help boost them past any competitors by always changing the way they do things. The company is also looking for new ways to change or update their current technologies to help support the ever growing needs of society such as DVD, reservations, home delivery, on-line request via the web, and adding an inter-active Blockbuster cable channel.

Blockbuster's overall strategies to offset the risks facing its industry include Blockbuster's current primary initiatives for long-term growth, in particular its "No Late Fees" program and its online initiatives; Blockbuster's forward-looking statements are based on management's current intent, expectations, estimates and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others: (1) consumer appeal of Blockbuster's existing and planned product and service offerings, in particular its "No Late Fees" program and its online initiatives, and the related impact of competitor pricing and product and service offerings; (2) Blockbuster's ability to effectively and timely prioritize and implement its initiatives and its related ability to timely implement and maintain the necessary information technology systems and infrastructure to support its initiatives; (3) the extent and timing of Blockbuster's continued investment of incremental operating expenses and capital expenditures to continue to develop and implement its initiatives and its corresponding ability to effectively control operating expenses; (4) the studios' dependence on revenues generated from retail home video and their related determinations with respect to pricing and the timing of distribution of their product.

For customers who want to buy new DVDs, Blockbuster executives admit they'll have a hard time matching Wal-Mart's prices. Because of that, it appears much of the chain's new strategy rests on their belief that some customers will shift back from