Redbox Case Analysis Essay

Words: 1281
Pages: 6
Open Document
Case Analysis: Redbox

Stefan Marroquin
31 January 2012
Strategic Management
Dr. Mark S. Poulos

Introduction Redbox is a leading provider of movie and game rentals in the Nation. Redbox offers self-service DVD rentals through over 22,400 kiosks throughout the United States, Puerto Rico, and the United Kingdom. (McGraw 20) In 2004 Redbox began spreading automated vending machine kiosks containing by and large new release movie DVD’s in high traffic shopping locations. Its products and operations include Kiosk DVD rental, online disc rental reservation, no late fee, recently released movies, and video game rental. (Hoovers) In February 2009, Coinstar Inc., who is also a leading provider of money transfer services and self-service …show more content…
Large competing companies such as Blockbuster and Netflix offer services through store chains and e-commerce websites. It would not be feasible for new smaller companies to enter the market. Redbox is no longer the only company providing automated kiosks services to customers. Blockbuster has recently invested in its own kiosk service, however Redbox continues to have a significantly advantage in the number of locations and price. The customer base consists of casual movie watchers from all demographics who have discretionary income to rent and buy movies. The large movie studios such as Universal Studios and 20th Century Fox have the ability to determine the product cost in this industry.
Internal Analysis (Non-Financial) Redbox continued growth in the movie rental market depends upon a number of factors including: product, price, marketing, and distribution. Redbox provides its customers with over 22,400 automated movie rental kiosks with over 200 different movie titles to choose from. Each kiosk has a wide variety of movie genres which includes mainly new titles. (McGraw 20) In addition customers are subject to no late fees and have the option to purchase a movie at any time. The prices of DVD rentals are lower than its largest industry competitors, Blockbuster and Netflix. Redbox charged a rental fee of $1 per a day and typically sold previously rented DVD’s at $7 each. (McGraw 20) With a wide variety of titles and low prices
Show More

Related Documents: Redbox Case Analysis Essay

Copy Of Netflix Case Essay example

Netflix Case This case presents the phenomenal growth and enormous success of a young and forward­looking company called Netflix. It discusses the turbulent industry environment where it confronts rapid and ongoing shifts in technology, ever­changing consumer preferences, and intense competitive challenges. Netflix is the largest subscription service or movies and TV episodes in the world. For $8.99 per month, Netflix offers an unlimited quantity of movies and TV episodes streamed in…

Words 2733 - Pages 11

Zhe Xu S Case Analysis Essay

canceled their subscriptions. Then the negotiation with Starz had broken down, and the licensing expired in March 2012, that was exacerbated the company’s stock price continue going down and a loss for the whole year. Analysis 1- Competitive analysis Competition from rival sellers: 1. Redbox is Netflix’s main competitor in the physical DVD rental segment. The customers could rent DVDs for $1.20 per day, but Netflix’s price is 4.99 per day. Although, the price is lower than Netflix, but they do not have…

Words 1225 - Pages 5

Essay on Netflix Case Study

Netflix Case Study Analysis Executive Summary: Netflix Inc. (Netflix) is currently the largest online provider of DVD rentals in the US. Founded by Reed Hastings in 1997, the company offers monthly prepaid rental services utilizing its online search engine, where the company then mails DVDs to subscribers via the United States Postal Service (USPS). Since the company’s inception, Hasting has been exploiting disruptive innovations as a means of creating a competitive advantage over incumbents…

Words 5286 - Pages 22

Blockbuster Case Analysis Essay

Blockbuster Case Analysis I. Strategic Profile and Case Analysis Purpose: The Blockbuster firm is a leading provider of rental movie and game entertainment with approximately 8,000 stores. The company operates in the US, Europe, Latin America, Australia, Canada, Mexico and Asia. Blockbuster is headquartered in Dallas, Texas and employs 58,561 people; this figure includes full-time, part-time and seasonal employees. The company recorded revenues of $5,287.9 million during the financial year…

Words 1020 - Pages 5

Netflix Case Essay

Case 6 Netflix’s Business Model and Strategy in Renting Movies and TV Episodes 1. How strong are the competitive forces in the movie rental marketplace? Do a five-force analysis to support your answer. Currently the competitive forces in the movie rental marketplace are not very strong. There are not very many players seeking to gain share in the market. The only competitors that come to mind when thinking of the movie rental marketplace are Netflix, Blockbuster and Red box. The evolution…

Words 1094 - Pages 5

Essay on Netflix Case Study

Netflix Netflix is considered one of the top leaders in the DVD rental/ streaming industry, and there are many reasons why. This case analysis will go over some of the strengths of Netflix, some of the downfalls of the company, and what makes them who they are today. Netflix has many competitors in the industry, and they are now in a constant struggle to stay atop of the leader board as online streaming becomes more popular. Technology: There are many entrants in the market today, and one…

Words 1899 - Pages 8

Netflix Case Analysis Essay

------------------------------------------------- EMS Consulting ------------------------------------------------- Strategic Plan Three-Year Plan: Staying Competitive in a Dynamic Market Emilee Anderson, Morgan Hall, Vincent Nelson GBA 490 – 003 Dr. Ron Dulek February 28, 2013 Table of Contents Executive Summary ……………………………………………………………………………. 3 Issues and Recommendations …………………………………………………………………. 3 Industry Overview ……………………………………………………………………………... 5 Company Overview ………………………………………………………………………………

Words 3268 - Pages 14

Global Marketing Assignment Essay

London MKT 7100 Prepared by: ID: 000064521 9th April 2015 Total Word Count 4,289 TABLE OF CONTENT 1 Task 1 3 1.1 Executive Summary (198 words) 3 1.2 Company Overview (246 words) 3 1.3 Situation Analysis (379 words) 4 1.3.1 SWOT Analysis 4 1.3.2 Porter’s Five Forces 5 1.3.3 Steeple Analysis 5 1.3.4 Market Opportunity (218 words) 5 2 Task 2 6 2.1 Objectives for Market Entry (498 words) 6 2.2 Business Development Strategy (664 words) 8 2.2.1 Ansoff Matrix 8 2.2.2 Gap Filling 8 2.2.3 STP 9 3…

Words 5885 - Pages 24