Furthermore, the customer is free to cancel a subscription at any time. Competitive Rivalry within an Industry: The intensity of competitive rivalry within the movie rental marketplace is very high. Subscription-based movie providers like Netflix, local movie rental stores, video on demand, and cable companies providing movies on exclusive
The kiosk allows people to rent movies for just over a dollar a night and return them whenever you want. Originally Redbox was owned by McDonalds and started in their locations until Coinstar bought the Redbox Company. Redbox uses the low-cost provider strategy due to the fact that the movies are convenient and low cost which appeals to all levels of income and makes the consumer believe it is of great value. Through Coinstar Redbox has been able to enter into many partnerships with retail giants that Coinstar already operated in. Redbox has achieved great success by focusing on its core competencies for being the low cost provider.
Redbox’s Strategy in the Movie Rental Industry: Strategy: The chief elements of Redbox Strategy are: low price relative to rivals, superior ability to serve a market niche or specific group of buyers, convenience, strategic and competitively valuable partnerships, close relationships with retailers, time efficiency for customers and low operating costs. Their key functional strategies include: information technology strategy; sales, marketing and distribution strategy and supply chain management strategy. Their strategy also includes efforts to expand their geographic coverage. The information technology strategy is based on Redbox’s ability to track every single kiosk and monitor them closely. They are able to track what movies are rented frequently and the customer traffic to each kiosk.
(Wal-Mart Corporate Website) Huge turnover, large customer base and returning customers show that Wal-Mart has been able to achieve this goal in its 50 years of existence. Wal-Mart sources material from third world countries at low price. Very efficient supply chain management and bargaining power has enabled Wal-Mart to sell goods at low price. Company is also pursuing vertical integration strategy to lower cost. Answer-2) Wal-Mart Stores had turnover of $446.95 billion and net income of $15.77 billion in financial year ending
Redbox Case Analysis Key elements of redbox strategy Redbox started its business in 2004 with the idea of providing a variety of movie DVDs at a very low price. Instead of paying around $4.50 in a blockbuster store, for example, customers could rent movies for one dollar per day, making Redbox a much more viable option. What enables the organization to offer such a low price is the fact that instead of physical stores the company has touch screen kiosks which customers pick movies from, not having so many of the costs associated with the stores (store employers, higher rent, etc.). Other than low price, Redbox attracts customers as its kiosks are located on high traffic areas which are convenient for them, like groceries store, retail stores, and so forth. The idea is that people will rent movies in places they would have to go to anyways, or rent movies after walking past one of the kiosks even if they were not considering to in the first place.
Many costumers is one of the plus that they give to Wal-Mart because this means that they don’t have to go store by store catching all the specials that they have. In the other hand, they like it because they go to one store but get the specials from all of the other stores. Wal-Mart’s economics has a very strong strength which is the one that offers the customers low prices on all the products. There is a comparison of the stores and there is an average price of about 15 to 25 percent lower. With the great size of supply chain
• Inexpensive, convenient, and low involvement business module that appeals to a large target segment Weakness • Rarely uses TV, Print, and other innovative in-store advertisement outlets as marketing communication channels • Behind in alternative innovative means of delivering movies to its customers • Internet marketing could be more proactive in sending message of its new movie releases available for rent • Lack of or inadequate web content manager. Several You Tube videos are available on ‘how to hack into a Redbox kiosk’ or the lack of credit card security at kiosk without a response from Redbox. Opportunities • Use in-store displays to increase new movie releases awareness • Increase ‘word-of-mouth’ referral through proactive use of social media optimization • Innovative internet marketing to create awareness of the availability of newly released movies with strong titles • Close the 28 day gap of renting newly released movies between Redbox and some of its
LOS ANGELES, California (AP) -- The Walt Disney Co. said Tuesday that the weak U.S. dollar kept domestic vacationers closer to home, boosting theme park revenue while growth in the company's film studios and media networks also helped push second-quarter net profit 22 percent higher. Disney said it earned $1.13 billion, or 58 cents per share, in the quarter ended March 29, compared with $931 million, or 44 cents per share, a year earlier. Revenue for the period grew 10 percent to $8.71 billion. Analysts expected earnings of 51 cents per share on $8.47 billion in revenue, according to Thomson Financial. Disney shares jumped 84 cents, or 2.5 percent, to $34.57 in after-hours trading.
Also, Netflix has sponsored an exclusive window on some pretty good shows, including its big hit, "House of Cards." •DVD margins- yes, some people still rent DVD’s, which also helps make-up for some of the content unavailable via streaming. While HBO won’t be allowing the Sopranos to streamed via Netflix anytime soon, you can still get the series from Netflix via DVD. To boot, the service boasts strong contribution margins of around 50%. •Price- $7.99 for all you can watch is cheaper than one night out at the movies.
According to Bloomberg Business Week, Coca-Cola remains the best globally recognized brand across all industries for years, while Pepsi’s brand ranked number 25 in the year 2008. Thus, Coca-Cola is able to charge premiums for its syrup concentrates due to its larger market shares and better brand name recognition. In order to compete against Coca-Cola and increase revenue, Pepsi has diversified its businesses as I stated above into other markets such as snacks, chips, and breakfast foods, with its core business focusing on soft drinks. Undoubtedly, the company’s strongest and most identifiable brand is indeed Pepsi but it has a certain advantage over Coca-Cola since it is more diversified. On April 9, 2009, Coca-Cola Company reported cash and cash equivalent to be $6,816,000,000 and on December 26, 2009, Pepsi reported cash and cash equivalent to be $3,943,000,000.