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	<title>Blum Blog &#187; confluence</title>
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		<title>BlockCity?</title>
		<link>http://www.blumblog.com/intersections/blockcity/</link>
		<comments>http://www.blumblog.com/intersections/blockcity/#comments</comments>
		<pubDate>Wed, 16 Apr 2008 01:24:46 +0000</pubDate>
		<dc:creator>David Blum</dc:creator>
				<category><![CDATA[Intersections]]></category>
		<category><![CDATA[business]]></category>
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		<category><![CDATA[mergers]]></category>

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		<description><![CDATA[Although it was met with minimal fanfare or excitement from both analysts and the market in general, Blockbuster’s recent bid for consumer electronic giant Circuit City piqued my interest. The USA Today ran a short piece on the front page of their Money section today outlining the deal and the initial reaction to it which [...]]]></description>
			<content:encoded><![CDATA[<p>Although it was met with minimal fanfare or excitement from both analysts and the market in general, Blockbuster’s recent bid for consumer electronic giant Circuit City piqued my interest. The USA Today ran a short piece on the front page of their <a href="http://www.usatoday.com/money/industries/retail/2008-04-14-blockbuster-circuit-city_N.htm" target="_blank">Money</a> section today outlining the deal and the initial reaction to it which claims that Blockbuster has offered more than $1B for the struggling retail chain.</p>
<p>Whether or not this deal goes through is less interesting than the strategy itself. Companies are wrestling with how to create 360-degree experiences in an effort to keep up with growing consumer demand for integrated services and products that are unified under a single branded entity. It’s become all about immediate gratification, anticipating the needs of consumers and identifying synergistic relationships that enhance the overall experience with a brand. Given this context, I can imagine much stranger marriages.</p>
<p>On the surface, the potential union between Blockbuster and Circuit City may not appear intuitive, but when you examine the core competencies of each company – digital entertainment – you start to see the synergies and possibilities. Although clearly biased, Blockbuster’s CEO, Jim Keyes makes an interesting and accurate observation about the changing landscape and the requirement companies now have to deliver connected experiences to their customers: The magic in the Apple Store is bringing hardware, software and service all together…they make it easy for the consumer.”</p>
<p>Keyes reasoning underscores the direction the marketplace is moving towards – confluences, intersections and connected branded experiences that move seamlessly between rational, virtual and physical worlds. This merger may not go through, but you can expect deals like these in the future…the near future.</p>
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