Despite its clear leadership position, Blockbuster ran out of places where to open new stores. Since the growth and profitability of its traditional video rental business has slowed down, James Hilmer, director of marketing, evaluated two growth opportunities: to create a virtual reality, in the salons of existing stores video, test marketing, which have shown positive results, or to use their skills for the retail trade by diversifying into specialty retailer of entertainment properties of their partners Viacom and Paramount. These efforts will increase by brand extension, Hilmer analyze which option allows Blockbuster to use their existing brand most. As the two segments of the market comparable in terms of size, current and future competition, investment needs and returns, as well as the ability to Blockbuster, to grow and to defend themselves in the segment? "Hide
on Mohanbir Sawhney Source: Kellogg School Management 7 pages. Publication Date: January 1, 2004. Prod. #: KEL092-PDF-ENG
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