Redbox SWOT Analysis Rebecca Ceja Devry University Company information: Red Box is a rental movie company which launched in 2002. The company offers easy, convenient and affordable movie and game rentals. The company has kiosks located everywhere in the U.S. and is continuously growing. According to Peterson’s article on Redbox, the company continues to strive even after raising their prices in 2012. Despite the increase in sales, the overall stock value decreased in 2013 when the owner Outerwall cut the forecast on overall revenue and profit, as discussed in The Seattle Times by Edwards.
Analyze Netflix business model How does Netflix change the video distribution industry? Netflix, headquartered in Los Gatos California was founded by Reed Hastings and Marc Randolph. The core of Netflix business model is deeply rooted in the reason that inspired its creation. Hastings had to pay $40 as late charges for a rented copy of Apollo 13 movie which was then the popular pay-per-rental system that would charge late fees. However, couple of years after its inception Netflix introduced a monthly subscription model of flat fee where users can go for unlimited DVD rentals without due dates, late fees, shipping or handling fees, or per title rental fees.
Alexander Johnson English 100 March 29 2013 Professor Dellasanta Movie Cinema and Netflix Online There are different ways to experience a movie but two of them are almost alike, Netflix and Cinemas. The Movie Cinemas are too costly,and Netflix is an at home movie theatre experience that is cheaper. The Movie theaters cost per each movie while netflix you can pay one month of and get all the recent movies that just came out on dvd and television shows you might have missed. As the whole movie theatre experience goes you can basically get that at home with netflix but you just have to connect to a television or a projector. The reliability of a movie loading at home on a laptop or computer is faster and you do not have to wait for the previews to end.
EXTERNAL ENVIRONMENT ANALYSIS • • • • Situational Analysis Industry Analysis Competitive Environment Analysis Environment Trends SITUATIONAL ANALYSIS • Politics/Legal – Governmental regulation – little regulation – Supplier agreement – start rent DVD after 28 day DVD in market. • Socio-cultural – Changing in customers’ buying behavior – Changing in customers’ watching method – Customers’ perspective about price, time and quality of services. SITUATIONAL ANALYSIS cont.. • Technological – VHS to DVD - become one of the companies adapt this technology – Changing to stream online – digital age – Wide-spread in gadgets market – PSP, Blue Rays Player and others • Demographic – Increase world population – 6.1 billion in 2000 to 7.2 billion in 2015 SITUATIONAL ANALYSIS cont.. • Economic – Customers can watch a movies without paying more. • Socio-cultural – Most of the people like to watching movies – Changing customers buying behavior INDUSTRY ANALYSIS • Threat of new entrants/ barriers to entry – low entry barriers – Industry leader – Customer loyalty is weak • Power of suppliers – Suppliers own content that company needs. – Licensing deals – Legal issues INDUSTRY ANALYSIS cont.. • Power of Buyer – Customer loyalty is weak (price changes) – Majority of revenue is from customers • Product Substitutes – Alternative methods of receiving content – On demand, purchasing INDUSTRY ANALYSIS cont.. • Intensity of rivalry among competitors – Many competitor – Few emerging market
Blockbuster cans delivery rentals through a lot of different channels and not just online download or delivery. At the same time it is also their weakness too because they were too late to jump on that opportunity and Netflix has already took up most of the online market. And because of that blockbuster has been taking a down ward spiral into debt and has lost its reputation and it’s going to be very hard for them to get even a piece of that market back. Blockbuster clearly wasn’t monitoring what was going on externally. Blockbuster should have foreseen this but it was Blockbuster poor strategic planning to keep up with
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.
At the height of the movie rental industry revenues hit $11.6 billion (“Video Tape Rental” 2012). Blockbuster Video was the largest video rental company in the US and around the world until it was bought by Dish Network in 2011 (Sakthi Prasad 2011). The movie rental industry was attacked by digital rentals since pay per view emerged, but it wasn’t until digital rentals online became popular that any real dent was made in the video rental revenues. Netflix emerged with a new concept of renting DVD’s via mail order with no late fees and as long as a customer desired to have the DVD. Their business concept included a subscription with unlimited rentals at one movie at a time.
Definition Essay I love watching movies like most people do. But is going to the movies better than renting movies? I prefer renting movies and watching them at home. Going to the movies is a never-ending hassle because of the parking, prices and uncomfortable atmosphere. So most of the bigger movie theaters are usually located in major shopping mall an area which creates one of the biggest issues with going to the movies, the parking.
Bxxxxxx Bxxxxxxx November 7, 2014 English 1301 A Moving Experience Many people find movie theaters overrated nowadays. When ticket prices are skyrocketing and home sound and screen systems are becoming more advanced, it is hard to blame them. People can be annoying in theaters, texting, whispering to friends, or allowing their toddler to shriek through the film. When you can download a movie with a click of a button, why bother with the hassle of theaters? Though watching movies at home can be more convenient, the atmosphere and quality theaters provide make for a special event that cannot be matched by viewing movies at home.
Daniel Day English 10 Fahrenheit 451 Censorship in Movies ! Censorship has played a big role in our world, and to this day it remains a part of many things including: music, video games, movies, books, and journals. Censorship has both positive and negative effects, and can result in books, movies and other materials banned from certain countries, or cityʼs. I believe that they do a superb job censoring things in cinema especially. !