Episode 3: Lessons from Blockbuster’s Rise and Fall with Alan Payne (Part 1)
What can the rise and fall of Blockbuster teach us about process improvement and operational excellence? In Episode 3 of Quality Time with MoreSteam, Alan Payne, one of Blockbuster’s most successful franchisees and author of Built to Fail: The Inside Story of Blockbuster's Inevitable Bust, joins the show to share his unique perspective.
Alan and Dan explore the history of the video rental industry, the challenges of inventory management, and the importance of understanding the voice of the customer. They discuss how data analysis and operational strategies contributed to Blockbuster’s success—and its eventual collapse.
Whether you're a fan of nostalgic Blockbuster memories or looking for business lessons from its journey, this episode offers fascinating insights you won’t want to miss. And unlike Blockbuster, you can listen to the show anytime you want! There won't be any late fees.
In this episode you'll hear about:
2:05 - Concepts and principles from process improvement and operational excellence
4:56 - Alan's start in the grocery business
8:06 - Opening a video store across the street from a Blockbuster
10:19 - Keeping new releases in stock
14:09 - Alan moves to Blockbuster
17:07 - Analyzing the data at Alan's Blockbuster stores
21:15 - Inventory Management at Blockbuster
24:19 - The growth of Blockbuster
28:33 - What people wanted at a video store
31:57 - Voice of the Customer
Additional Resources
Built to Fail: The Inside Story of Blockbuster's Inevitable Bust by Alan Payne
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Host • MoreSteam
Dan Swartwout is the host of Quality Time with MoreSteam. A lifelong Central Ohio resident, Dan is a double Buckeye. He earned both a BA and a law degree from The Ohio State University. Before joining MoreSteam, Dan had a long career as a host, comedian, and master of ceremonies. For 17 years, Dan was the studio audience host for the Ohio Lottery game show Cash Explosion. Dan was also the host of CBuzz, which was a collaboration between the Columbus Chamber of Commerce, WWCD 92.9, and the Columbus Dispatch. On CBuzz, Dan interviewed some of the most prominent entrepreneurs in Central Ohio. From 2002-2020, Dan toured the country as a standup comedian. Tracks from his comedy CD have been played over 5,000 times on Sirius/XM satellite radio. Now, Dan brings his experience and enthusiasm to Quality Time with MoreSteam -- it's business and fun, together.
Alan Payne spent thirty-one years in the movie rental business, the last twenty-five of those as a Blockbuster retail franchisee. He took over a small group of Blockbuster stores in 1993 and grew it into one of the largest and most successful chains in the company. He finally closed his last store in 2018, more than eight years after Blockbuster filed for bankruptcy. He also authored the book, "Built to Fail: The Inside Story of Blockbuster's Inevitable Bust."
