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.
Netflix Marketing Plan Executive summary This marketing plan seeks to encourage growth of sales and returns on capital by encouraging more subscriptions. It also intends to intensify promotional campaigns and support customer relations and experiences. The employees too will have a chance to grow and be satisfied working at Netflix. Through it, Netflix is bound to consolidate itself as a mega streaming content distributor worldwide. Mission Statement We endeavor to be a leading company in distributing entertainment content that is affordable, accessible, quality and affordable.
For years Netflix has been entering into deals with electronics manufacturers such as Song and Samsung to include the Netflix software with their devices, allowing the end-users to access the Netflix streaming service. Netflix needs to foster the creation of technologies that allow fast and easy access to the Netflix streaming service, while providing high quality content. The second major challenge is the growth in competition in the video streaming market, Netflix is competing against Hulu, Amazons subscription service, HBO Now, Google Inc. and others to dominate the video streaming market, and, at the time of this case study, was winning the battle against the newcomers, but this lead would surely decrease as other streaming services entered into agreement with movie and television studios. The third challenge that Netflix is facing is getting involved in original programming, creating their own series and movies. Netflix has had quite a bit of success here with shows such as ‘House of Cards’ and ‘Marvel’s Daredevil’, but other video streaming suppliers have started to create and release unique content as well, and some of the major media companies are pushing back against the unique content on streaming services by removing their own content from those streaming services.
Push and Pushback in Streaming Video 1. a. Fostering deployment of technology that enables user-friendly, ease of access to the Netflix streaming service. b. Initiative of Netflix to get into original programming. c. Growing competitions from businesses such as Amazon.com, allow people to stream videos at no charge. d. Fees that studios charge Netflix for access to the studios’ content.
With more than 30 million streaming members in the United States and other countries, Netflix Inc. is the world's leading internet subscription service for enjoying movies and TV programs. (netflix.com) Netflix continues to seek this top leading excellence by practicing their mission statement, which is “providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery”. (Topix.com) Engraining their mission statement to be a major aspect of the Netflix culture is what influences them to be appealing and successful. In the Netflix culture there is a huge emphasis on “values are what we value”, high performance, creativity, and freedom and responsibility. (techcrunch.com) Actual company values are the behavior and skills that are valued in fellow employees.
Selling latest item on their site would get more customer, by getting more customers this will help Amazon business to gain better shopping place for customers. However Amazon get loads of customer’s everyday purchasing item from their website, this is because their products are very low cost which customers be happy to buy from them. They also give offers to customers who buys their items regular from their website, by giving offers like vouchers or free delivery on next order this would keep the buyers happy so they could shop more often on their site Amazons website is very masculine this is because the website has been using black and white colours with the normal fonts, but few days ago it was Halloween therefore they have made it look very attractive for the customers to shop on their website for Halloween styles clothing for kids and family as they have loads of Halloween products in stock they have putted all the items on low cost so they could get more customers shopping on their site. Because of Halloween they have designed the website homepage with all the top popular item that customers would be interested most they have done this so the
Keeping a movie rented from Redbox for a good period will add up to the tab. Netflix allows the subscriber to keep any movie in the account as long as the monthly fee is paid. In additon, using Netflix allows movies streaming without the hassle of returning any material; on the other hand, Redbox can be cheaper if returning the DVD by the next day is not a problem. In order to achieve video streaming or watching a DVD requires additional equipment. Video streaming devices include computers, SMART TV, SMART Blu-ray, Wii, Playstation, Xbox 360, tablets, and smartphones.
Dial-up internet service will be replaced with high-speed service through the local cable company. A monthly package that provides unlimited internet use will be purchased for this purpose at an affordable rate. Out-dated computers will need to be replaced as well. Two quality desktop computers for the office are required to centralize all aspects of the business for use by Ruben, Lisa, and key team members. Since Microsoft offers many programs that will be useful in organizing the business, and is usually included with new computer purchases, this is the software I recommend.
These efforts in customer and community service help Lowes Foods to increase their sales and therefore profits. One of Lowes Foods most successful programs is Lowes Foods to Go. The Lowes Foods to Go program is an online shopping and pick-up program where customers can log onto www.lowesfoods.com and shop online. Next they drive to the store and the groceries are delivered to the customer’s car. There is a fee of $4.95 for this service.
Also online is convenient for some consumers to shop in the comfort of their own home. Consumer could go to the web site directly and purchase their brand of King’s syrup either in glass bottle with the new vibrant colors or plastic bottle with the easy squeeze handles. Also the potential buyer would come across deals when purchasing online. The marketing distribution channel will go under intensive distribution. By the product almost obsolete on the shelves this would be the time to do intensive distribution of having the product on every shelve where potential customers would buy the product.