Redbox Case

In: Business and Management

Submitted By jasolis2
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Redbox Case Analysis Questions Management
Name: Jimmy Solis
1. Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Redbox is taking?
Red Box approaches the low-cost provider strategy. They have established in a very niche market. They charge a price of $1 for their rental business which is low compared the average $4.50. The $1 rental price attract a big market share and low-income.
What type of competitive advantage is Redbox trying to achieve?
Red Box has a better competitive advantage than their competitors. It focuses on low price; it locates their rental boxes in strategic locations where there is a great influx of people. It establishes partnerships with major studios, like Sony, Warner Brothers, and Lions gate. What does a SWOT analysis of Redbox reveal about the overall attractiveness of its situation and future prospects?
Redbox has for strengths the following things low-cost compared to their competitors, no fees, strategic locations;
Among the weaknesses are limited amount of titles, the machine has limited capabilities, continuous DVD inventory and stock monitoring, and high cost of contracts with the studios.
Among the opportunities there are the strategy based in increasing the number of Redbox kiosks this can lead to increase its market share.
Among the threats are that the industry could change from physical to digital that could affect the business of DVD rental, the danger of finishing the agreement with the studios can threat the amount of titles Redbox has.
The situation for Redbox in general is good there are great prospectuses for growth in the short-term, although they have some threats. Redbox is capable of expanding and increase their revenues.
2. Using your answers to the first 3 questions, develop a “worry list” (p. 125 in Text) for Redbox.
How to…...

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