A 6 page 'SWOT' (Strengths, Weaknesses, Opportunities, Threats) analysis of a small video store that was doing quite well until Blockbuster Video moved to town. Two years after the arrival of Blockbuster, Video Concepts was still profitable, though only marginally so. It has been said that if the giant retailers are steamships plowing through the ocean, then the small local retailers have to be the cigarette boats zipping around and through them, changing direction at any given time. Video Concepts cannot hope to compete with Blockbuster's financial resources or national name; they must become actively involved in the community, stress their local ownership in a small North Carolina town where such things are important, and operate more on creativity than cash. Vid-Conc.wps
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which North Carolina is known. At the time of this study, the company has been in business for several years, founded and still owned by a local man who
opened his first store just after graduating from college with a major in business. The owner opened the first Video Concepts store in downtown Lexington and opened the second at
the end of his first year in business in an outlying shopping center serving a neighborhood area. Both of the first stores were small neighborhood businesses, and at the
end of his second year, the owner opened a much larger store in another section of town in a building formerly occupied by a retail furniture business. At the
end of the second and third years, Video Concepts had grown in revenues by $100,000 over previous years. The owner had taken very little of the profits of the
business for his own needs, returning them to the business instead. The owner kept himself aware of both existing and potential competition, and had in fact seen nearly two-thirds of
the existing local video businesses close their doors in the time that he had been in business. He had visited Blockbuster stores in other areas and had concluded that
the local market in Lexington would be too small to be able to support a local Blockbuster location. Nonetheless, Blockbuster built and opened a large video store directly across
from Video Concepts third and largest store. Two years after Blockbuster moved to town, Video Concepts was still profitable, but only marginally so. The owner saw only three
alternatives available to him: (1) remain in business and raise his prices; (2) hire a manager and take a corporate job for himself; and (3) sell the business.
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