Netflix vs. Redbox

1055 Words Aug 12th, 2012 5 Pages
A draft of Netflix vs. Redbox Netflix Strengths
Netflix provides a subscription-style e-commerce service. Customers only need to sign up and pay $13.95-39.95 a month to borrow as many as 2-9 movies at a time with no monthly limit. If customers quickly watch the DVD and send them back, the monthly fee pays for quite a few movies. The relatively low monthly fee enables Netflix to compete with Blockbuster and other brick-and-mortar video rental business. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has less problem in predicting revenue or level revenues.
* Being an on-line DVD rental store, Netflix combines the growing Home Entertainment Market and
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* NetFlix and Musicland Stores paired up to begin a cross promotion program to promote awareness and sales of DVDs. NetFlix will point customers to SamGoody.com when they want to buy discs. In return, SamGoody.com will provide the purchase phase of NetFlix 's "Test drive" program before they decide to buy. Customers who visit a page for a specific movie on SamGoody.com will also have the option to rent from NetFlix.com. NetFlix will also give the option to rent DVD from Netflix.com or buy it from SamGoody.com.
* As a web based business, NetFlix has rapid growth potential with the popularity and development of World Wide Web, and DVD technologies. More and more people will accept and be involved in e-bussiness. NetFlix, the world 's first and largest online DVD rental store, will develop fast.
* NetFlix established promotional relationship with Amazon.com for the sale and rental of DVD. Amazon 's reputation for its tremendous selection and first-class customer service will make it the ideal partner to handle sales to NetFlix 's customers. NetFlix also looks forward to introducing millions of Amazon.com customer to its compelling DVD rental service through exclusive special offers and promotions. This might bring much more customers to NetFlix.
* Playing Video games is a very popular amusement. Netflix will extend into video game rental business.

Threats:

* Traditional brick and mortar rental stores are a threat
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