Red Box Case Study 1a. What are the chief elements of Redbox’s strategy? * Low price advantage (allows rentals for as little as $1 a day) * Strategic partnerships to raise volume (place kiosks in many high trafficked areas such as groceries or convenience stores) * Rapid expansion (have almost doubled amount of kiosks each year since 2006) * Customer experience (Redbox focuses on the customer having a fast transaction by allowing customers to obtain DVD’s under 1 minute if they were aware of which one they wanted, and returns in 20 seconds) 1b. Which of the five generic competitive strategies most closely fit the competitive approach that Redbox is taking? Low-cost provider * Redbox is using the low-cost provider strategy by offering DVD’s at roughly a 75% discount compared to their competitors * Also by placing their kiosks in areas of different industries that also use the low-cost strategy such as McDonald’s the kiosks are surrounded by their market 1c.
Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet. Never the less one of the biggest aspect for their sudden popularity was that celebrities where seen In superstyle cloths. Using famous people is one of the best marketing tools you can use, as potential consumers might be attracted by their appearance and style. Especially young people, which is superstyles target consumer, is attracted by
Redbox Case Study Redbox’s Strategy Main Elements of Redbox Strategy includes: * Attract customers with a combination of low price and convenience (strong focus on customer experience) * $1.00 per day rental price is considerably cheaper than the $4.50 rental fee charged by many movie rental outlets * The location and convenience of Redbox DVDs has considerable appeal; an estimated 150 million people per week walk within 10 feet of one of Redbox’s nearly 20,000 locations * The rental and return process was designed to be fast, efficient, and fully automated with no membership fees(200 different DVD titles are just a touch on a touch screen and swipe of a debit or credit card away and returns can be completed in 20 seconds or less at an unoccupied machine) * Gives customers the ability to go to the Redbox website and see what is in stock at nearby Redbox locations and reserve a DVD at a particular machine * Launched a Redbox iPhone app that offers the main features of the Redbox website on the iPhone and iPad * Expand rapidly the number of shopping locations with a Redbox kiosk * The parent company (Coinstar) has been aggressive in continuing to deploy additional vending machine kiosks (the company planned to install 7,000 to 8,000 new kiosks in 2010) * Plans called for capital expenditures of $115 million to $125 million for new kiosk locations * Redbox has recently negotiated arrangements to add kiosks to navy exchange stores on over 40 naval bases in the continental US and Hawaii, to 100 Schnuck Markets stores in 7 states, as well as expand its presence to more than 280 of Kun & Go’s 430+ convenience stores in 11 states * Redbox has been creating buzz among retailers interested in boosting customer traffic in their stores * Redbox has been leveraging the existing customer
Lowe had been a partner with a video rental company as was weary of the high over-head costs associated with the business. One of his first attempts at self-service vending machines (old soda machines fitted to dispense VHS and beta tapes) was met with failure. However, nearly twenty years later, Lowe, while working as a consultant to McDonald’s, teamed up with Redbox and its project management team to develop Coinstar. Coinstar, already popular for its change machines located in local grocery stores, teamed up with Redbox to provide kiosks for the video rental market. McDonald’s contribution to Redbox’s success is being an effective partner by way of investments and location.
If more people spend time online, Google stands to make more money from online ads and other services. Google Fiber is just one of the projects the company is exploring to boost revenue as its search advertising business matures. Google Fiber is a tantalizing proposition for consumers fed up with the slow speeds and high prices offered by cable and phone companies. With Google Fiber, Internet speeds reach 1 gigabit per second at prices that are comparable with what they already pay for much slower service. Consumers in the Midwest pay about $70 a month for high-speed Internet.
We will be the only center that offers this service in the shopping mall. Even though Teddy Bear Childcare charges less, the center will see profit within the beginning of the third year due to the beneficial advertising campaign. The center expects to double its clients every six months within the second year. We will also be active in the community, building a solid reputation with parents and the community. Finally we will offer membership cards with 20% off and stamp cards that includes 15% discount for every five
A ticket for a senior citizen is only 6 dollars, which is fairly cheaper than what AMC 20 chargers. Phoenix Theatres is accommodating to the older customers and welcomes their business. In addition, Phoenix Theatres gives out many ticket and concession coupons. There are ticket coupons that are for a free movie and also if for some reason there is an issue with the movie then the theatre gives out emergency passes. Emergency passes are good for any movie at any time and they never expire.
red box stratergy in the movie rental industry Puerto Rico Cohort 6 Business Strategy Assignment Prof. Logan By: Jessica Oliveras May 5, 2012 REDBOX POINT The Redbox’s Strategy in the Movie Rental Industry case describes how successful REDBOX has been by being the leading company in self-serve DVD rental business. They strategically placed kiosks where the customers where shopping regularly. This enable them to obtain $263MM in revenues (includes DVDXpress) for the end of the first quarter of 2010, representing a market share of approximately 20%. REDBOX MISSION Redbox’s mission is to provide clients with a very low price rental fee per day of $1 for movie rental at an accessible place, with a good selection, and the convenience of returning the DVD at any Redbox kiosk. SWOT Analysis Strengths: • PRICE – low everyday price of $1 rental movie.
Although the 20s brought new ideas, these ideas might not always have been in the interest of providing a free nation for all and indeed may have caused increase hatred in society. The first world war did not directly damage American society and in fact was beneficial as demand for American goods increased. As a result of this there was a huge amount of technological and industrial progress. An example of this is the motor car industry which provided huge amounts of freedom. The Ford production line meant that prices could be kept low and this, coupled with a generous credit system, led to huge numbers of cars being sold; in 1929 there was one car for every five Americans.
In fact, campaigns are not particularly costly, according to Smith (2001) with the total spending every two years on congressional campaigning amounting to roughly the cost of one home video rental per eligible voter (p. 63). At the same time Smith (2001) references to studies results which indicate that higher spending is beneficial for public knowledge of candidates and issues, without eroding public faith in government (Ch.3 pp. 39-64). Moreover, campaign expenditures could not be considered wasted, as they are used to purchase professional services and products, correspondingly rising demand for these goods, which ultimately means additional workplaces and incomes for