Supplier Power (SIC 3861) is low. Equipment components are specialized and likely not many customers. Threat of Substitutes is medium/high due to many options including theme parks, sporting events and live theater. The cost of these substitute products may be prohibitive to many if consumers enjoy movies due to their relatively low cost. Rivalry Among Existing Firms (SIC 7812) is low.
SWOT Analysis Strengths: • PRICE – low everyday price of $1 rental movie. • CONVIENCE – Kiosks are strategically placed where usually everyone goes • EASE OF USE – You can drop the rental movie at any Redbox kiosk, quick and fast no waiting for a cashier • SELECTION – good DVD variety • RESERVATION – facility of reserving the DVD you want online. • LOW OPERATIONAL EXPENSE –The highest expense a company has is compensation and benefit, and rental expense. These expenses are relatively low in comparison to the movie rental locations. Weaknesses: • SELECTION - limited DVD selection in comparison to the movie rental locations • QUANTITIES – limited DVD quantities in comparison to the movie rental locations • MOVIE STUDIO REFUSAL – inability to secure ample copies of certain titles.
REDBOX’S STRATEGY IN THE MOVIE RENTAL INDUSTRY [1] Currently, Redbox is one of the leaders in the movie rental industry. Its history was dated back in 2002 when it was just an experiment that McDonald’s restaurants had tried to expand. Acquired by Coinstar in late 2003, Redbox then began expanding by deploying vending machines kiosks that contained predominantly new release movie DVDs in high-traffic shopping locations. The idea behind Redbox is that customers could be easily enticed to rent a movie at a location where they shop regularly. Redbox pursues a low-cost provider strategy by striving to achieve lower overall costs than rivals on products that attract a broad spectrum of customers.
It’s also unknown how long this took to build. DIYers are shopping at much lower price points covered by Gainsborough. Early association with discount channels could hurt the premium brand; however future moves to introduce Gainsborough with Quartz technology could grow shares in the value segment. Marketing to developers is illogical, as they are happy with ShowerMax. However,
In my opinion it will be very hard to balance between the rights of both groups on this issue because there is people for it and people against it. I really don’t see the big problem. I know when peoples make movies that expect to make a big profit. Whether their is peoples who is buying the movies than making lots of copies than selling to peoples cheaper than the original cost of the movie. Nine times out of ten peoples gone go the cheaper way.
Additionally, there are copies such as Netflix who offer the movies the day the theaters stop featuring the movie. b. Bargaining Power of Suppliers- the Cineplex is one of four theaters that significant in the market, which makes the film industry less competitive and theses theaters headline the most popular movies at the same time. c. Threat of Substitute Products- the emergence of the bootleg dealers has changes the dynamics of the movie experience as the dealers have been able to produce theater quality movies sometime prior to the movie debut in the theaters. d. Rivalry among competing firms-v Cineplex is one of four popular brands; there is little competition among the top four brands as they all preview the top movies at the same time.
Nickelodeons had the advantage of being “cheaper than vaudeville houses and more regularly available than traveling exhibitions”. (McGraw, Hill, 1994:37) However, early directors of the nickelodeon era struggled to tell a story in such a way that could be easily understood (McGraw, Hill, 1994:43). It soon became apparent that relying purely upon an actor’s performance to develop a narrative wouldn’t suffice: "Filmmakers provided few cues to guide the spectator through the action; there was little of the redundancy of narrative information which the classical cinema would habitually provide.” (Bordwell,Staiger, 1981:158) At the forefront of directors who were employing various techniques to resolve these issues was D. W. Griffith. (Barry, 2002:15) ‘The Girl and Her Trust’ (a remake of ‘The Lonedale Operator’) clearly demonstrates this. (Henderson, 1970:132) Despite their near identical storylines, ‘The Girl and Her Trust’ was widely considered by many at the time to be an improvement upon its predecessor: “a comparison quickly shows how far Griffith’s editorial and camera techniques have progressed.” - (Henderson,
The subscription system of Netflix is a web-based system that allows customers to order DVD online using a web service that quickly delivers by mail movies they can keep as long as they want. The software system is vast and complex and which helped Netflix changed the video distribution industry. First, the system computes who gets what movie next. This can be very challenging but at the same time is very important to support its subscription based business model and allow even low-frequency watchers to get movies appropriately. Second, the system allows calculating which movies will be in demand.
The studios will increase fees for licensing the content Netflix streams. The main reason why studios would do this is because they see Netflix as a threat to their industry. An increase in fees may not be too much harm for a company without a lot of overhead; however the threat of these studios refusing to license the content would be a major challenge to Netflix. Without proper licensing, Netflix would not be able to offer the
This system is based on customer rental history and the ratings the customers provide to Netflix. The ratings system is a simple 5 star system where 1 star is equal to a bad movie and 5 stars is equal to an excellent movie. Strategy Netflix's strategy can be seen in their actions in the marketplace. Online enterprises must attract customers on more than just cost, so Netflix will out compete rivals by being the best-cost provider. Netflix will give customers more value for the money.