Some of the primary strengths of Redbox are it is a low cost provider; it is well located at convenience stores, fast food restaurants, grocery stores, mass retailers, and pharmacies; low inventory and operating cost. A few other strengths include user–friendly kiosks, no membership requirement and a “Return to any kiosks” policy, which differentiated itself from other rental companies. Because Redbox depends on external business relationships for its overall operation, the high cost of partnerships and reliance of distribution licensing agreements are identified weaknesses. Increasing cost of partnerships with movie studios and the reliance of distribution agreements with distribution companies can have a significant impact on Redbox’s inventory.
