Business Analysis: SWOT Analysis Of Redbox

3333 Words 14 Pages
Register to read the introduction… Competitive forces. Redbox is in a highly competitive market. They face competitors such as Netflix and Blockbuster. Redbox leads in a competitive stand out by offering quick, convenient and affordable movie rentals. A Blu-Ray movie rents for $1.50 per day and a regular DVD movie rental is $1.20 per day. The Redbox network is nationwide and offers more than 30,000 convenient locations. (4) Blockbuster Express recently joined the kiosk movie rental market which led them to be a direct competitor to Redbox. They also have a leg up on Netflix as Redbox doesn’t require monthly contracts, which is highly appealing to the casual movie viewer.

2. Economic forces. With the present state of the economy, Redbox flourished when the demand for cheaper movie rentals increased. When the Blockbuster brick-and-mortar
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They distribute over 37 million disks to their field employees to install in the kiosks per year. Thousands of kiosks are installed every year. They have been able to build the infrastructure of the business to grow with the changing times, to keep up with the customer demands, and to grow their customer base into loyal customers.

III. SWOT Analysis

A. Strengths

1. Over 30,000 convenient locations nationwide 2. No monthly membership fees 3. Rent-and-return anywhere policy 4. Offers cheaper rental prices, $1.20/night, than its competitors 5. Largest DVD-rental kiosks operator

B. Weaknesses

1. Limited access to titles, mostly new releases, and the schedule of release date depends upon the studio, not Redbox 2. Increased costs for DVD acquisitions due to Warner’s discontinued relationship with Redbox (9) 3. Marketing communication channels rarely used 4. Only accepts Debit or Credit Cards for methods of payment 5. Lacking web management in monitoring code sharing websites that allows for free

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