Using The Percentage Method For Success For Redbox 's New Location

2. Which countries share the highest TFR and what is it? Which countries share the lowest TFR. What is it?

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.

My analysis will cover competition from substitutes and the change in buyer behavior and demographics. I will use the five forces model of competition and a SWOT analysis along with other sources of analysis. The information and recommendations that follow will provide you with the insight and building blocks to compete in the movie exhibition industry.

4) Location- Decisions about where to locate a store are critical to any retailer’s success. Location decisions are particularly important because of their high cost, long-term commitment and impact on customer patronage. Choosing a particular location type involves evaluating a series of trade-offs. These trade-offs generally include the occupancy cost of location, the pedestrian and vehicle customer traffic associated with the location, the restrictions placed on the store operations by the property managers, and the convince of the location for customers.

For now, Redbox is in a position to fulfill the demands of the consumer, however Redbox must keep a vigilant eye on the trends of the consumer as the market shifts from physical to digital movie rentals. 3. 3. What strategic issues or problems does Redbox management need to address? Draw upon the discussion on p. 87 in Chapter 4 to develop your “worry list” and to state the issues/problems in the

The survey also concluded that 42% of Redbox’s active customer base is renting more DVDs than before Redbox entered this industry. This model can be win-win situation for Redbox, movie studios and most importantly the customers.

Competition between theaters often comes down to distance from home, convenience of parking and proximity of restaurants. Innovations by one theater chain are quickly adopted by others. The differing approaches of the theater chain companies are reflected in their cost of fixed assets per screen.

Entering and transforming the video rental industry was a large undertaking for the start-up company. The first marketing objective the company undertook was the process of building a brand. Netflix’s identity was crucial to future growth and success. Without a strong brand, competitors with deep pockets could have easily duplicated the company’s business model. Secondly, leveraging technology was critical to establishing the business and infrastructure growth. The consumer base was the final objective Netflix sought to achieve. Retaining and growing subscribers were fundamental to revenue and marketing goals.

On the concession side the bargaining power is weak due to economies of scale. Theaters earn most of their profits on concessions so they use their power to reduce their costs from their suppliers.

A market analysis was first taken out on Reading Courtenay; one cinema under the Reading brand name situated in Wellington. From this analysis, it became apparent that the Internet was one of the company’s largest competitors. Upon further research, the problem revealed to be at such a large level, one single cinema would not be able to control it alone. The view for the marketing plan had to be changed and instead would now support a company-wide view.

Technological infrastructure in Germany is considered as developed. Since Internet will be considered as a key tool for must businesses nowadays, considering the fact that from a population of 80,996,685 million people, 65.125 million have access to Internet and are considered as active users. (See Appendix B)

China joined the global Internet age in 1994, and has been commercially available since 1995. Since then, Chinese Internet usage has seen explosive growth, doubling every six months, and the number of online users is only second to the US. The Internet age ushered in the information age with a new world of freedom and expression for the Chinese. However, soon after its inception, the Chinese government has reined in the free wheeling Internet users and has imposed new laws and restrictions to access and content on the Internet.

The five forces of competition of the movie rental industry presents little force against a competitor’s market position based on buyer power, supplier power, and new entrant threats. However, threat of substitutes and rivalry among competitors can affect the amount of profits a company will gain and retain.

The aim of this study is to determine the differences between the Internet in China and the United States. China was chosen due to the restrictive and closely scrutinized nature of its Internet, in contrast to the internet in United States which has significantly more freedom and protected by the freedom of speech and expression. This study will include:

External environment is very important for managers to make decision about the company’s direction and strategy. In order to gain a deep understanding of Blockbuster’s industry and competitive environment, the following seven questions need to be answered. Q1: What are the industry’s dominant economic features?