Organization Strategy: Due to Redbox's business being conduct by self sustaining kiosk and online entertainment, the company currently have roughly around 2,700 over the United States. Redbox's Corporate headquarters is in Oakbrook Terrace, Illinois and is owned by Coinstar. Redbox has a General Manager of Physical Operations and A General Manager of Redbox On Demand (Virtual Platform) . Redbox Mission Statement is "People crave entertainment.
The availability of movie rentals has taken a huge leap after blockbuster went bankrupt in 2010 (Satell, 2014, p.1). The novelty “Netflix” became a hit after Blockbuster went under. But the huge hit that sparked the consumer’s attention was the creation of “Redbox” in 2002 when McDonalds added Redbox to their LLC to improve the convenience of their customers. The concept of convenience has taken a huge leap in the past decade because of the huge developments in technology. The advancements in technology has also made brick and mortar stores either start to go bankrupt, like blockbuster, or has made the company create an online branch to their business.
The reason that consumers began renting from Redbox is quite simple. Redbox found a way to make renting movies and video games easy and convenient for the customer. They began by teaming up with CoinStar in 2005 and placed their Kiosk machines in similar locations, such as grocery stores, drug stores and other high traffic areas (Heffes,2011). These were the most frequent places that consumers accessed. By the end of 2009, there were more than 19,000 Redbox locations in (Heffes,2011).
As a growing business Redbox will face several challenges and these will demand different solutions. One solution would be to keep up with the market and the effects it has on the consumers. This is necessary due to the fact that businesses continually change. The more this company succeeds, the more their competitors will notice.
The biggest issue was securing enough capital to put growth into motion, and catapult out of the small scales tests that showed promising projections. In 2005 as they sought out potential investors, they were rejected from major corporations like Netflix and Blockbuster, but found hope in Coinstar. Coinstar saw their vision and spent 32 million dollars to secure a 47% stake in the company and in 2009 spent 107 million dollars to acquire the whole company (Williams). Even with such a major backing, it took some time for Redbox to make the expansions needed to increase engagement and knowability, and actually be profitable. This was achieved by making partnerships with national chains to house their kiosks, thus increasing accessibility.
SWOT remains the universal language of an organization that stimulates influences over the business’s greatest strengths, weaknesses, opportunities, and threats (UMUC, 2017). For that reason, a company should also evaluate internal influences (e.g., the strengths and weaknesses) that affect the business as well (UMUC, 2017). In addition, a company should evaluate external influences (e.g., opportunities, threats) when assessing SWOT (UMUC, 2009). Additionally, when assessing SWOT of the organization, it becomes imperative to assess internal as well as external factors that reflect positively and negatively on the business environment.
Netflix vs. Redbox Today people are always looking for entertainment on a budget. Two common options are Netflix and Redbox. Redbox kiosk has popped up at every neighborhood in the country, giving Netflix a new competitor. Netflix is an international provider of on-demand internet media streaming.
ASOS is a well know online clothing shop and you can find them at http://www.asos.com ,they are known for selling a range of designer products at a discounted price however they also sell there own brand of clothing. The business also sells a variety of shoes and accessories. ASOS have competitor pricing, this means that they base their prices on their competitor. ASOS have reativly low prices ranging from £5-£265 and being that they sell designer clothes at a discounted price they are very popular with a range of people specifically with teens, ages 13+. Not only do they cater to teens they are also popular with student as they offer a 10% student discount.
Basically Netflix is in the entertainment delivery business and their list of competitors is quite extensive. Even though the original major competitors of Blockbuster and Movie Gallery are out of business, there are still many who compete with their original business model of shipping DVDs. Amazon, Walmart, and Best Buy are major sellers of DVD movies and Redbox provides more than 40,000 locations to pick up and return DVD rentals (Fritz, 2014b). Redbox provides the ability to order online and via mobile apps, which ensures the video will be waiting when you arrive at your local kiosk.
Q1 : (Philip,2011) “Marketing environment is consists of the actors and forces outside the marketing department that affect marketing management’s ability to build and maintain successful relationships with target customers” . The marketing environment consists of micro and macro environment . Macro environment have larger societal forces that effect the microenvironment , it includes : demographic , economic , cultural and other forces. The demographic is the study of human populations like : gender , age, location , density and other statistics . The demographic trends have impacted the marketing includes : changing age , population growth and so on , for example , this changing will affect the united airlines decision because demographic
EQUIPMENTS KitchenAid KSM150PSER Artisan Series 5-Quart Mixer, Empire Red. I used to mix everything by hand after taking an Ayurvedic cooking class, in which I learned that love for your family can be incorporated into your food. I figured I could get more lovin' into my cookies by sweeping my spoon beautifully around the bowl as I hand-creamed butter and sugar, but it really became more of an exercise in cutting, mashing and stabbing. That just incorporates violence, aggression and frustration into the food! Now through marriage and procreation, I have a larger family to cook for, and I realize that the time I save by using the mixer allows me to bake more, effectively sharing more love with more family.
But then there were many changes in video rental market from which the biggest change was from store based rental to online video rental which was started by a California based company Netflix in 1999, blockbuster management ignored the competition and continued selling DVD rental in store and charging late fees for rental. Blockbuster decided to come into online DVD rental service in august 2004 by the time Netflix had already taken over the market in the past 7 years because online DVD rental was easy to access and return and on top of that Netflix did not charged customers late fees, because of which customers got attracted to Netflix then to blockbuster. Starting as early as 1990, Blockbuster should have started closing down its stores that were underperforming and should have set up kiosks in grocery stores and other public places which would have increased their profit margins. External Environment External environment is a set of conditions outside the firm that affect the firm’s performance(R, Duane, pg 6). The
Premier Inn is a famous British hotel brand with over 700 facilities worldwide. Being founded by Whitbread in the year 1987, the company is the result of a merge between Premier Lodge and Travel Inn. Premier Inn hotels operate under the strategic partnership between the leading international companies and Britain’s leading hospitality firm Whitbread PLC. This allows enhancing the popularity of the Premier Inn brand all over the world.
The two major competitive forces that have challenged the movie industry are new market entrants and substitute products and services offered. The new market entrants such as online movie websites (CinemaNow, MovieLink, Youtube, etc.) have challenged the way movies were originally viewed on televisions, in theatres and through movie rental. These new market entrants are also beginning to use substitute services, such as providing movies online by enabling customers to download rentals and utilize video-on-demand services in the comfort of their own home, 24
In addition, lower ticket costs for movies after a certain time period from release date to combat DVD competition also an opportunity to this industry. There will be more movie options and less selling out of blockbusters as its show a certain film on multiple screens at the same time, lower tickets costs could attract consumer to purchase those tickets. Moreover, introduce Customer Loyalty Programs also an opportunity to promote this industry. For instance, promote different programming such as sports, plays, musicals and more to different watchers. 3.4
