Preview

Mcdonald's Redbox Business Strategy

Good Essays
Open Document
Open Document
222 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Mcdonald's Redbox Business Strategy
I would consider Redbox to be an innovative company that was founded about 14 years ago and lately has become a hot commodity. Amazingly, Redbox were founded within McDonald’s fast food restaurant as an option for customers to rent a movie after grabbing a bite to eat. In the beginning, Redbox was tested at more than 800 McDonald’s restaurants across the United States that was very successful.
Due to much success, the parent company of Redbox called Outerwall Inc. came to an agreement with McDonald’s to invest in Redbox by leveraging its retail knowledge to expand the Redbox footprint outside of McDonald’s restaurants. Redbox are now available in grocery stores, pharmacies, convenience stores and mass merchant retailers like Walmart. After
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    Hungry Jack's Strategic Analysis
    • 3289 Words
    • 14 Pages

    Hungry Jack's Strategic Analysis

    The article at hand is a report discussing the structure of several industries and the various marketing strategies they use. The strategies have undergone severe analysis based on several theories of marketing. To help explain these concepts the fast food industry is the main source of reference. In addition, we will use Hungry jack’s limited as the main example in the fast food industry. Based on the different approaches the company has used a sound conclusion was reached. This enables us to gain in-depth knowledge on the different marketing strategies companies in the fast food industry use. Through this, we are also able to determine the various challenges affecting the industry. The reports also clearly show the strengths and weakness of firms in this…

    • 3289 Words
    • 14 Pages
    Best Essays
    Read More
  • Good Essays

    Marketing Plan for Redbox
    • 924 Words
    • 4 Pages

    Marketing Plan for Redbox

    Redbox’s marketing mix is simple, unique, and clever. They have successfully turned a shopping item into a convenience item. Times have changed since the first movie rental store, Magnetic Video, was opened during 1977 in Los Angeles, California. During that time home personal computers were barely seen and the internet was nowhere on the horizon, so movie rental stores with good customer service provided the consumer with knowledge about the movies they were interested in. However, in today’s fast moving, information crazed world, consumers can obtain better information on the fly with there Blackberry, iPhone, or any other internet ready…

    • 924 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Redbox Marketing Plan
    • 6148 Words
    • 25 Pages

    Redbox Marketing Plan

    Redbox is facing two main issues, one being the online business. Redbox is preparing to launch an online video streaming service within 5 months on the market and will try to get a significant market share in the long run. The other issue is problem with major film studios, but Redbox is going to make a new agreement with them, which is a financial issue and means that costs will increase. Redbos will also enlarge their video games and Blu-Ray portfolio and in addition the functionality of the vending machine is going to be improved. There are going to be as many as four slots per vending machine for rentals and returns. Furthermore, Redbox is going to expand in terms of numbers of kiosks and also will make a…

    • 6148 Words
    • 25 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    An Organizational Failure - Case Study of Blockbuster
    • 1945 Words
    • 8 Pages

    An Organizational Failure - Case Study of Blockbuster

    Philips (2011) believes that success or failure of any great company depends on “Events, internal and external” (p. 3). Blockbuster also appears to be a victim of certain events at internal as well as external level. Based in McKinney, Texas, Blockbuster and founded in 1985 (Blockbuster Corporate, 2012) and it ushered in a new era as far as video rental retail industry was concerned. The company gave birth to video rental places that had significant amount of movies under one roof (the first store had 8,000 movies) and were not associated with bad movies or bad neighborhoods (Greenberg, 2008).…

    • 1945 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Better Essays

    Blockbuster: Leadership & Strategic Failures
    • 2057 Words
    • 9 Pages

    Blockbuster: Leadership & Strategic Failures

    Blockbuster started as an idea by David Cook who owned a company called Cook Data Services that provided computer software to the oil and gas industry in Texas. In the early 80’s the oil and gas industry took a turn for the worse in Texas, and Cook decided to attempt a venture into the movie video rental business. The current video rental marketplace was primarily small privately owned business that had a small inventory of movies that was kept locked up and behind the counter. Cook’s idea was to offer a wide selection, allow the videos to be on the shelf, provide excellent customer service, and integrate his computer software programming background to create a software system to track inventory. On October, 19, 1985 Cook opened his first store in Dallas, Texas. After opening up three additional stores, Cook sold a large portion of the business to a group of investors with Wayne Huizenga, the founder of the world’s largest garbage disposal company, Waste Management, Inc. to finance expansion.…

    • 2057 Words
    • 9 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Red Lobster Direct Marketing Strategy
    • 118 Words
    • 1 Page

    Red Lobster Direct Marketing Strategy

    Direct marketing through the internet is a highly recommended way of advertising in today's technologically advanced economy. Through internet market Red Lobster can target a smaller demographics, at an affordable price and wider scale in order to appeal differently to each target segment. Red Lobster currently manages their own website which is fully accessible 24/7 displaying their latest food special as well as campaign promotions. Red Lobster also believes in building personal relationships with customers generating Red Lobster's Fresh Catch Club, which keeps loyal customers uptodate with Red Lobsters newly trends and new menu items, as well as loyalty programs and Email Blasts. Direct marketing techniques encourages Red Lobster to be…

    • 118 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Redbox
    • 583 Words
    • 3 Pages

    Redbox

    RedBox has a cost performance advantage over possible new entrants since it is owned by a publicly traded company and already has an established distribution channel relationship. RedBox has an advantage over new entrants in that it already has a well-known brand image amongst movie viewers. People often say “why don’t you go just rent it from RedBox” during conversations. However, consumers can readily switch over to Blockbuster or cable pay-per-services.…

    • 583 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Case Study: Red's Express Marketing Plan
    • 3842 Words
    • 16 Pages

    Case Study: Red's Express Marketing Plan

    The Redmond Social Enterprise Project Board has embarked on an important effort as it aims to help change the future of Redmond teenagers and impact the community at-large with its social mission. The creation of Red’s Express, a non-profit café and food delivery service, demonstrates the unique way that social enterprise can serve the community by helping fund Redmond youth organizations. As the business plan created by the Social Enterprise Group, LLC illustrates, this project serves community need in two ways: by filling a quick food service void in the Redmond business community; and creating a sustainable funding source for non-profit youth organizations in Redmond.…

    • 3842 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Good Essays

    Dvd Rental Industry Analysis
    • 496 Words
    • 2 Pages

    Dvd Rental Industry Analysis

    There is also a high degree of internal competition within the industry. Redbox’s main competitor, Blockbuster Inc., has 13.9% market share. Recently Blockbuster has moved to compete more directly with Redbox, closing more than 1000 stores and opening up small kiosks instead.…

    • 496 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    Redbox Case
    • 1195 Words
    • 5 Pages

    Redbox Case

    Redbox is using a low-cost provider strategy. They have the lowest rental fee in the market. They contribute to revenue growth with late fees that are the same price of the rental fees. By having several locations they are also able to keep revenues high. Redbox has focused on a broad range of consumers located in a broad range of areas. Just by providing several locations, Redbox immediately has more access to potential customers than any other firm in the market.…

    • 1195 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Mcdonald's Strategic Prospects
    • 734 Words
    • 3 Pages

    Mcdonald's Strategic Prospects

    With more than 31,000 restaurants in 118 countries and serving nearly 60 million consumers daily, McDonald’s (MCD) has grown to be the largest food service merchant worldwide. It is because of this that McDonald’s ranks higher than both Burger King Holdings (BKC) and Yum! Foods Inc. (Yum) in just about every category of the Competitive Profile Matrix (CPM). The 2008 year end numbers show that McDonald’s revenue of $22.99 billion doubled that of Yum and more surprisingly almost ten times the revenue of Burger King. Yum ended the year with a net income of $928 million, which sounds like a good year until you see that MCD’s year netted $4.35 billion (David, 2011).…

    • 734 Words
    • 3 Pages
    Powerful Essays
    Read More
  • Good Essays

    Blockbuster Hbr Case
    • 662 Words
    • 3 Pages

    Blockbuster Hbr Case

    Blockbuster became the dominant movie rental firm for a number of reasons. First and foremost in the early years, they were invested in by Wayne Huizeinga who infused the company with $18.5 million dollars and for a span of 7 years grew the company’s market capitalization at an annual growth rate of 118%. Once it started becoming large, it efficiently used economies of scale. It also had the most power to negotiate favorable deals with movie studios as opposed to mom and pop shops. Blockbuster covered all the factors critical for a successful video store which are depth of new releases, breadth of available copies, and store locations. One of Blockbuster’s biggest value drivers is geographic location. Most people, especiall in urban areas live pretty close to a Blockbuster location. Availability of titles is also a value driver that not all video stores can provide. Their reputation is also a value driver. Economies of scale are one of Blockbuster’s largest cost drivers. The ability to negotiate with movie studios with leverage while their competitors can’t as effectively win lower prices for inventory purchases gives a huge advantage. The aforementioned reasons are ammunition to defened against competitors. Geographic location and leveraging the brand name recognition are two of the most important advantages that Blockbuster has that none of its competitors can easily overcome.…

    • 662 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Blockbuster: Movie And Video Game Superstore
    • 1426 Words
    • 6 Pages

    Blockbuster: Movie And Video Game Superstore

    The reason why people preferred Redbox instead of blockbuster was that it was more convenient. People could be at the grocery store and want a movie or video game in the spur of the moment. In that way, they have the opportunity of picking up a movie or game on the go, instead of traveling to another location. In other words, because people are very busy and always on the move, they can see what is for sale because everything is displayed right before their eyes. The overall status of Redbox was that, "...Redbox already has 24,000 video kiosks, more than three times the amount Blockbuster has, at supermarkets and other stores, dispensing DVDs at $1 per rental". The last reason towards the closing of Blockbuster was the location of the store itself. Blockbuster was not placed in parts of towns or cities that caught customer's attention. They were usually sandwiched between other businesses or hidden in corners. It was stated that, "The model was also simple/Blockbuster was reimagined as a convenience store". This affected the coming of customers because there was nothing from the store that drew people in. In this case, people would only visit a Blockbuster store if…

    • 1426 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Mcdonald's Business Type and Purpose
    • 580 Words
    • 3 Pages

    Mcdonald's Business Type and Purpose

    Franchising a business means that the company, even though it is owned by a head of directors, they sell several shops to private people, who pay for using the companies name and selling the whole menu of this business. They still have restaurants which are actually controlled and managed by the McDonald’s company, but even the shops the franchised, they still own and control the actions and on- goings in each shop and restaurant. By franchising the companies name they give people, who want to be independent, the opportunity to find a quick start into the worlds market of restaurants. Loads of small business fail to get widely accepted and fail to make their name famous. McDonald's is a name the public trust and it’s much easier…

    • 580 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    The Brick and Mortar Video Rental Industry
    • 2404 Words
    • 10 Pages

    The Brick and Mortar Video Rental Industry

    For the brick and mortar rental business to stay viable many changes need to occur. Organizational change may be varied in its definition and the amount of change that must occur. The text, Implementing Organizational Change Theory into Practice by Bert Spector states that one example of change might be “introducing a new business model to meet innovative competitors” (2010, pg. 1). For the former rental industry brick and mortar giants to remain competitive they must make changes and become more cost effective, convenient, technologically advanced, accepting of changes regarding the human implications, and managerially forward thinking. If these changes do not occur the likelihood that the former brick and mortar giants such as Blockbuster, Movie Gallery, and Hollywood Video will be able to compete with the new concepts of distribution such as Netflix, Redbox, and cable rentals is very minimal.…

    • 2404 Words
    • 10 Pages
    Powerful Essays
    Read More

Related Topics