The Organizational Behavior Practices of Redbox

Organizational culture- Publix organizational is customer valued where they would go an extrea miles to make their customer happy, and compassion for their customers. For example, “a customer was checking out in Asma’s lane when she realized the card she was paying with had expired, and her new card was at home. Asma came to the rescue by using $100 of her own money to pay the customer’s bill. The customer was overwhelmed with Asma’s generosity and returned later to repay her” (Publix

On the horizon, Blockbusters number of competitors should steadily increase from new emerging technologies. If Blockbuster extends into the realm of VOD, Legal Movie Downloads, or Digital Video Recorders (DVR), it must realize there are existing and powerful players in these markets already. This new technology is shaping the market for many deals or partnerships. They will face fierce competition, but in the future, Blockbuster must not find it self on the outside looking in.

The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes.

Blockbuster implemented a new strategy for customers to access their rentals in “five channels of distribution: in-store, by mail, through vending machines and kiosks, online, and at home (direct to the TV)” (DATAMONITOR, 2009). However, this strategy was a reactive approach to the problem produced ten years behind schedule. Wooldridge et al., (2007) stated that Blockbuster should select and adapt their strategy to respond to the fast changing market and maintain a competitive position. This was an obvious failure for Blockbuster. The changes in the market produced a decline in profit at a faster pace than the strategies that Blockbuster implemented to combat these losses.

Gone are the days of waiting in long lines while at grocery stores with the hopes that that person in front of you will have a speedy transaction without the delay of a price check. The grocery shopping experience is quite different than when we were children. Many of us in the Generation X, Millennials, and Generation Z era are ditching the long lines and relying on apps to fill our fridges. However, while many of us are relaxing in the comfort of our homes and ordering a week’s supply of groceries, others are bypassing the cashier and are heading directly to self-checkout.

While Redbox is one of our biggest competitors for viewers, it seems that the DVD rental market is on a downward trend. Therefore it is probably best to focus on companies that are intent on delivering video streaming. One recent player in the market is Sling TV, which is a subsidiary of Direct TV, and they have an offering of content that covers an area of entertainment that we have not been able to crack into (Katzmaier, 2015). They stream live cable programs such as AMC, TNT, TBS, Disney, HGTV, Cartoon Network, and ESPN to users for twenty dollars a month. While they are still subject to commercials and do not offer the ability to fast forward on certain channels, their product offering is one that differs enough from Netflix to cause

Redbox has not segmented its market by any demographic variable. With its kiosk located at routine place, it wishes to target the whole market, otherwise known as mass marketing.

Redbox is in the movie rental business via self service kiosks. Redbox is wholly owned subsidiary of Coinstar Inc.

Currently the competitive forces in the movie rental marketplace are not very strong. There are not very many players seeking to gain share in the market. The only competitors that come to mind when thinking of the movie rental marketplace are Netflix, Blockbuster and Red box. The evolution of technology has allowed many people to stream movies from online at no charge, for most and without any required subscription. Places like Blockbuster and Movie Stop are not as vivid as they have been in previous years due to the market shifting

The movie studios want customers to be able to get their movies and entertainment as easily as possible. The easier it is for people to acquire their products the more likely it is that they will. By offering many different options for customers to obtain movies and entertainment, Blockbuster has a strategic advantage over its competitors. The convenience that Blockbuster can offer in their ability to distribute the movie studios products is a definite advantage. Another advantage

I wouldn’t raise the price if I was the adviser for Redbox. First, Redbox will need to examine why they are in business. They started their company by studying their competition and know that people did not want to pay too much for renting a movie. Secondly, Redbox need to observe the oligopoly market, there is not many people today that is in a high demand to rent DVD’s. When Redbox started their company, time was changing in the world. Yet, the time doesn’t stop for anyone. Today, more people are streaming movies from their phones, computers, and tablets. Lastly, Redbox will need to do more marketing by using promotion, advertising, and coupons (Ferrell L. & Ferrell, O. C., & Hist, 2015 p.7). Redbox must keep up with their competitors and

This is due to the fact that customers are forced to buy in bulk. A strategy taken by Costco wholesales to increase store turnover and profitability. Additionally, to increase its market influence, Costco has added services such as automobile, gas, optometry, pharmacy, and printing at very low prices in the past decade. “What’s better than to rotate my car’s tires, fill my prescription, gas my car, all the while I am finishing my shopping”, a dad might say while shopping at Costco. Finally, unlike any other mega-retailer, Costco has included its own employees as primary target market. By respecting the employees and paying them high wages, Costco has created a positive feedback loop for itself. Highly paid employees will have high loyalty toward the company, and they will shop at Costco for their needs. At the same time, due to their high loyalty, staff will provide high quality customer service for common customers. This generates positive word-of-mouth advertisement leading to an increase in membership sig-ups translating into higher profits for the company (Ingram, 2013).

Instead of various local chain stores, Netflix operated from a single virtual store that offered customers new rental features. The web services platform utilized customization and a user-friendly design to facilitate renting movies. “CineMatch,” a proprietary developed application, tailored the virtual store to each subscriber. This technology produced customized rental suggestions for customers while maximizing potential inventory. “CineMatch” incorporated a subscriber rating system of past rentals to generate more efficient and personalized future recommendations. The web-based services also improved selection through the ability to easily browse Netflix’s large inventory catalog and add selections to a personalized “Queue,” which lists movies customers have scheduled to receive. Instead of being forced to navigate through the traditional genre and alphabetized catalog, Netflix offered an easier movie selection process. Besides the selection efficiencies, members have the ability to share ratings, reviews, and movie selections with each other through the “Community” feature.

Redbox is an easy way to rent and watch DVDs, Blu-Ray Discs and Video Games via automated kiosk or electronic device based streaming video. Kiosks are located at select fast food restaurants, grocery stores and convenience stores. Each Redbox kiosk holds approximately 630 DVDs/Blu-ray Discs/Video Games. DVDs rent for $1.20 per day, Blu-ray discs at $1.50 per day

Best Buy, a familiar retailer in the technology world, is struggling to stay on top. Online and mass stores have cornered the market in terms of convenience, customer service and price matching. The recent closing of over two hundred stores alongside falling sales has experts predicting that the giant won’t be in business long. Using a results-only work environment (ROWE), Best Buy has removed the customer from the equation and forced many employees out. A marketing disaster, Best Buy must change its marketing strategy from sales-based to a customer-based to stay afloat.