Employee relations and service strategies include regular employee meetings where excellent customer service is emphasized as the best method of winning customers from the main competitor, Blockbuster Video. Operationally, the latest video checkout technology is employed to provide fast checkout and Chad Rowan, the owner, is continually analyzing methods of reselling his new release videos in the most profitable manner.
Video Concepts, Inc., has many strengths. Among these, the main ones are: a rental cost that is $1.51 less than Blockbuster Video; a leasing cost that is $5.00 less per square foot than Blockbuster Video; free home delivery. There are other strengths such as a well-trained, courteous and efficient staff, the latest video checkout technology, and a large supply of videos that rivals the selection available at Blockbuster Video.
There are weaknesses that exist at Video Concepts, Inc.. One of the biggest weaknesses its is much higher cost per video when buying videos in comparison to the price had by Blockbuster Video's enormous buying power. A lack of capital for aggressive marketing and promotional campaigns is another weakness at Video Concepts, Inc.. Still another weakness is Video Concepts, Inc., inability to be able to sell its new video releases for a good price once the initial wave of rental interest wanes. Another weakness is the large amount of debt owed by the company for its three stores, an amount that is not being paid down in a timely manner because of the current stalling of cash flows.
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