Redbox Case
Redbox Case
1. What are the chief elements of Redbox’s strategy? What are the key success factors of this industry?
a. Attracting customers with low prices and convenience. Charging customers $1 dollar per day as a rental fee is very attractive to customers, because their nightly entertainment is very cheap in comparison to other alternatives. It is beneficial to Redbox, because in the event that the customer forgets to return the movie, they are charged double the rental amount which doubles revenues instantly.
b. Rapidly increase the number of shopping locations with a Redbox kiosk. Most Redbox locations are at the front entrance of the store. They have recently added locations outside the stores to replicate soda machines and newspaper stands. This provides customers with convenient locations to rent and return their movies.
c. Redbox has created a recognizable brand name by using bright red and white colors for their kiosk. By using red, Redbox locations stand out and are easily recognizable to customers.
d. Make the machine easy to use. Customers are able to browse through movies using touch screen technology quickly. They are also able to purchase movies and replaceable cases. Customers’ time at the kiosk is even quicker when there are two kiosk and/or the customers already knows what movie they want to watch.
2. Which of the five generic competitive strategies most closely fit the competitive approach that Redbox is taking?
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.
What type of competitive advantage is
1. What are the chief elements of Redbox’s strategy? What are the key success factors of this industry?
a. Attracting customers with low prices and convenience. Charging customers $1 dollar per day as a rental fee is very attractive to customers, because their nightly entertainment is very cheap in comparison to other alternatives. It is beneficial to Redbox, because in the event that the customer forgets to return the movie, they are charged double the rental amount which doubles revenues instantly.
b. Rapidly increase the number of shopping locations with a Redbox kiosk. Most Redbox locations are at the front entrance of the store. They have recently added locations outside the stores to replicate soda machines and newspaper stands. This provides customers with convenient locations to rent and return their movies.
c. Redbox has created a recognizable brand name by using bright red and white colors for their kiosk. By using red, Redbox locations stand out and are easily recognizable to customers.
d. Make the machine easy to use. Customers are able to browse through movies using touch screen technology quickly. They are also able to purchase movies and replaceable cases. Customers’ time at the kiosk is even quicker when there are two kiosk and/or the customers already knows what movie they want to watch.
2. Which of the five generic competitive strategies most closely fit the competitive approach that Redbox is taking?
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.
What type of competitive advantage is