Redbox Case Study Strategy

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Redbox Strategy Analysis
Introduction
This analysis takes an in depth look at the movie rental industry and more specifically Redbox. Redbox is the only company that has taken advantage of the in-between state of technologies that we are currently in. The movie rental industry has traditionally been, renting hard copies of movies in brick and mortar stores with thousands of retail titles. Technology has advanced so fast that it is clear to see that the future of home movie rental lies in wireless downloads and streaming movies instantly. However, the success in the movie rental industry is not solely determined the method of renting and technology. After investigating the movie rental industry and gathering a greater understanding of Redbox and their strategies, the recommendations for Redbox will conclude this case study.
Discussion
The Internet age brought about a newfound ease and convenience for gathering information and watching movies. The convenience of the Internet is just the beginning as Farhad Manjoo says, “where the movie-rental business is going and you will hear one thing: digital streaming. Amazon, Apple, Netflix, the cable companies, and many startups are gearing up to send every movie to your home on demand.” (Manjoo, 2009, pp. 3). Wireless movie technology is being stifled because of Hollywood’s outdated licensing structure. Redbox is positioned perfectly because it is an in-between technology, bridging the gap between disc rental and digital download of movies along with streaming of movies online (Manjoo, 2009, pp. 3). The technology that is packed inside each kiosk is the key to the low cost of running and maintaining their machines, which as Mitch Lowe explains in Manjoo’s article "That's the most intere...

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...hat can endure for some time. The only question is if they will adapt their business offerings along side customer desires.
Recommendations
Redbox must transition their business to wireless renting, downloading movies, and streaming to remain profitable long term. For the near future they need to expand how many movie titles their kiosks can hold. Otherwise they should keep doing what they are doing.
Conclusions
I have concluded that Redbox is near maximizing the profitability of their business model. Farhad Manjoo sums up the health and future very well,
Manjoo (2009) By the time GM launches its plug-in Volt, Toyota will have been selling the gasoline-based Prius for a decade. Sure, it's unlikely Redbox will survive the transition to streaming; its chief assets -- all those kiosks -- will suddenly become a liability. Until then, it'll take what it can get.

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