Redbox Case Essay

692 Words Apr 28th, 2013 3 Pages
Kevin Alvarez April 8, 2012
BUSI 4160 Redbox

1. What are the chief elements of Redbox’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Redbox is taking? What type of competitive advantage is Redbox trying to achieve?

- The chief key elements of Redbox’s strategy are low price advantage and strategic partnerships that drive high rental volumes. Redbox also offers convenience. Redbox has established a large “brick and mortar” type kiosk and consumer base without the capital investment of actual retail stores. Consumers use a simple touch screen to select and rent their favorite movies for $1 a day. They can keep the movie as
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What strategic issues or problems does Redbox management need to address? Draw upon the discussion on p. 125 in Chapter 4 to develop your “worry list” and to state the issues/problems in the recommended form.
- Some strategic issues Redbox must manage are how many more attractively profitable retail locations are there for Redbox to locate additional Redbox kiosks. The rise of video on demand, and Internet delivery rented movies, management needs to guard against over expanding and deploying kiosks that underperform. Redbox is completely vulnerable to competition from video on demand providers, from Netflix, and from other movie rental providers with Internet capability.

4. What recommendations would you make to Redbox management? At a minimum, your recommendations should cover what to do about each of the strategic issues/problems identified in question 3. In addition, each recommendation should be supported with convincing arguments based on your analysis of Redbox’s situation.
- Continue to deploy Redbox kiosks with growing caution and continued emphasis on requiring that new

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