Preview

The Organizational Behavior Practices of Redbox

Powerful Essays
Open Document
Open Document
1654 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Organizational Behavior Practices of Redbox
The Organizational Behavior Practices and Techniques of
Red Box Automated Retail LLC

by CHARLES MCNALLY, ANNA MONLYN- WALKER AND CHRISTY NELSON

A Paper Submitted to Dr. Eren Ozgen in Partial Fulfillment of the Requirements for MGT 3371 ZA1
Principles of Management Term 3
Troy University – eCampus 02/26/2010

Contents Introduction 3 Company Mission, Strategy, Goals 4 Company Core Values 5 Information on CEO 6 S.W.O.T. Analysis 7 Corporate Culture 8 Organizational Structure 9 Conclusion 10 Bibliography 11

Introduction (M.M.)

It’s so convenient! You’ve just finished your weekly grocery shopping at your local big box store and you’re on your way out the door with a cart full of all the bargains you found and there it is! The big “Red Box” with all the great movies you saw the trailers for on TV just a month or so ago but were too busy (or too broke) to go see at the theater. You sidle up to the touch screen, pick out a couple of titles, and swipe your credit card and Voila! Your DVD’s appear one at a time out of a slot on the side of the magical “Red Box” and you’re out the door and ready for a night of affordable entertainment.
This scenario plays out thousands of times every day at discount stores and fast food restaurants all over the country and every time that credit card is swiped, Red Box Automated Retail LLC adds a dollar for each DVD, and a dollar fifty for Each Blu-Ray Disk to its gross sales (double that if you forget to return it by 9PM the next day). These little “Red Boxes” have led to the closing of all but one of the traditional movie rental retail stores in my town and they’re having the same effect in small towns and big cities all across America.
Red Box Automated Retail LLC is based on a very simple concept of providing DVD and now Blu-Ray rentals at an affordable price through kiosks placed in high traffic areas. The concept started in 2002 as a part of McDonalds Ventures LLC with its first test launch in 2004 in



Bibliography: "History of RedBox." n.d. Redbox. 27th January 2011 <http://www.wikiswot.com/SWOT/backup.php?id=redbox&time=1289867921>. Miller, Liz Shannon. "5 Questions With…Redbox’s Mitch Lowe." n.d. <http://gigaom.com/video/5-questions-with-redboxs-mitch-lowe/>. "Mitch Lowe Linked In." n.d. <http://www.linkedin.com/in/mitchlowe>. "Mitch Lowe President Redbox." n.d. <http://entertainmentsupplychain.com/esca2010/2010/05/06/mitch-lowe-president-redbox/>. Redbox. n.d. <http://en.wikipedia.org/wiki/Redbox>. "Redbox Automated Retail." n.d. <http://www.hoovers.com/company/Redbox_Automated_Retail_LLC/rhxttif-1.html>. Smith, Shane. "Redbox to Lay Off 200 Call Center Employees ." n.d. <http://www.insideredbox.com/redbox-to-lay-off-200-call-center-employees/>. Tribbey, Chris. "Six Questions: Redbox’s Mitch Lowe ." n.d. <http://www.homemediamagazine.com/redbox/six-questions-redboxs-mitch-lowe-16603>. wikiswot. "Redbox SWOT." n.d. wikiswot.com. 5th February 2011 <http://www.wikiswot.com/SWOT/backup.php?id=redbox&time=1289867921>.

You May Also Find These Documents Helpful

  • Powerful Essays

    Netflix Information System

    • 1867 Words
    • 8 Pages

    Bibliography: Greene, Kate. “Netflix: DVDs at Your Door.” PC Magazine. 19 February 2003. 16 November 2006 < http://www.pcmag.com/article2/0,4149,894278,00.asp>.…

    • 1867 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Block Buster

    • 4592 Words
    • 19 Pages

    The case covers Blockbuster’s emergence in the video rentals market. After detailing the intricacies of the video rental market, the case takes a deeper dive into Blockbuster’s business model, based on brick-and-mortar locations throughout the US. This costly infrastructure has slowed the entertainment giant’s growth in an industry that has rapidly transitioned from the traditional store-based model, to mail rental and video-on-demand alternatives. The rapid transition of customer demand and the emergence of Netflix (Blockbuster’s main competitor) has incited Blockbuster’s rapid entrance into the video-on-demand market through the acquisition of Movielink.…

    • 4592 Words
    • 19 Pages
    Good Essays
  • Better Essays

    Blockbuster Video

    • 3224 Words
    • 13 Pages

    Blockbuster Video has been around for many years providing new and old movies along with video games to be either purchased or rented for a small fee. David Cook left the oil business to open his first store, “He opened the first Blockbuster store in Dallas in October of 1985…With more than 8,000 VHS tapes in more than 6,500 titles” (Poggi, 2010). The company kept growing and overcoming obstacles to stay alive and compete with new technologies. Cook sold shares in his store, went international and “by 1993 there were more than 3,400 stores and Blockbuster was looking beyond its core video chain business to fuel growth” (Poggi, 2010). But with competitors like Netflix and Redbox, Blockbuster went bankrupt in 2010.…

    • 3224 Words
    • 13 Pages
    Better Essays
  • Good Essays

    Marketing Plan for Redbox

    • 924 Words
    • 4 Pages

    Redbox is a DVD/Blu-Ray rental company which utilizes kiosk machines placed in convenient, high-traffic locations. The first Redbox kiosk was opened by McDonald’s in 2002. Redbox was later purchased by Coinstar, Inc., and over the years, Redbox has rented over one billion movies and has grown to more than 27,000 locations in restaurants, grocery stores, pharmacies and convenience stores nationwide. Redbox proves to be a very unique way to rent DVD’s and by the nature of Redbox’s rental process, most businesses would benefit from the increased traffic generated by having a kiosk machine at their location. This type of relationship proves to be a win-win situation for both Redbox and the businesses which are housing the kiosk machine.…

    • 924 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Redbox

    • 583 Words
    • 3 Pages

    Red Box is the industry leader in DVD rental kiosks. It has established itself as an inexpensive and convenient method for customers to rent DVDs. Although Red Box is a cost leader in its segment, it is threatened by the slow but impending disappearance of the DVD format.…

    • 583 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Redbox Marketing Plan

    • 6148 Words
    • 25 Pages

    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
  • Good Essays

    Blockbuster tried to make changes to win back the customers it was losing to Netflix and Redbox. The included the option of delivery service to be combined with in store pickups as well. The advantage was that they had a company that already has a DVD rental delivery service to learn from. Netflix had already invested money into research and development of their delivery service and all Blockbuster had to do was copy their service. Another advantage is that Blockbuster knew that there was a need for the service based on Netflix’s…

    • 717 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Blockbuster, Inc. started business in 1985 in Dallas, Texas by David Cook. The company rented video cassettes, and later DVDs and video games, to customers for viewing at home. Mr. Cook was a computer programmer and used this to his advantage. While other video stores had no idea what they had still in stock, Mr. Cook had reports that showed him which movies were being rented most so he could optimize the video selection. He also wanted a family environment and had a no-porn policy. (Gandel, 2010).…

    • 2742 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Blockbuster Inc. is an American chain of rental stores that offers movies, video games, and other forms of media entertainment on a subscription or a rental basis to consumers. The case highlights the implications of a revenue sharing business model in the Video Rental Industry where the Movie Studios are the upstream players (Suppliers) and the Video Rental Stores constitute the downstream players (Retailers). Under the revenue sharing model, the Video Rentals Stores such as Blockbuster procure tapes at a reduced initial cost from the Movie Studios and share a percentage of their rental revenues with the Studios. The following are some of the key benefits of a Revenue Sharing business model-…

    • 737 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Redbox Case Analysis

    • 1272 Words
    • 6 Pages

    Redbox is a leading provider of movie and game rentals in the Nation. Redbox offers self-service DVD rentals through over 22,400 kiosks throughout the United States, Puerto Rico, and the United Kingdom. (McGraw 20) In 2004 Redbox began spreading automated vending machine kiosks containing by and large new release movie DVD’s in high traffic shopping locations. Its products and operations include Kiosk DVD rental, online disc rental reservation, no late fee, recently released movies, and video game rental. (Hoovers) In February 2009, Coinstar Inc., who is also a leading provider of money transfer services and self-service coin-counting kiosks, purchased full ownership interest in Redbox Automated Retail LLC., (McGraw 20) In 2009, Redbox made up 67% of Coinstars revenue and now holds 27.9% of the DVD rental market share (Coinstar Analysis).…

    • 1272 Words
    • 6 Pages
    Better Essays
  • Better Essays

    During the years of 1987, and under the management of Wayne Huizenga, Blockbuster began to seek expansion. Huizenga and his team began to seek out small independent video rental stores across the country as a means to expand their business. “To expand a company’s geographic coverage—One of the best and quickest ways to expand a company’s geographic coverage is to acquire rivals with operations in the desired…

    • 2057 Words
    • 9 Pages
    Better Essays
  • Good Essays

    With the growing increases in technology and home entertainment, there are major forces pushing for change in the movie rental industry. In addition to this; we now live in a world where people want something and they want it NOW. I work in retail and this “in the now” era is…

    • 1722 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Four P's of Redbox

    • 503 Words
    • 3 Pages

    Redbox’s products consist of DVD, Blu-ray disc and video game rentals. Each of the discs come secured with a barcoded DVD case and are vended from a kiosk. These kiosks are self-serve, customer- interactive computer terminals that are available for public use. Each of Redbox’s kiosks can hold up to 200 titles and 630 discs. Redbox is known for their signature color, being red, displayed on both their kiosks and their product cases. The color red was chosen to stand out and assist in attracting customers. At these kiosks customers can browse the selection of DVD’s by categories such as genre, latest releases, most popular and alphabetical order. The rental period for the discs end at 9:00 the night after they were rented; and can be returned to any Redbox kiosk location regardless of where they were rented from.…

    • 503 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Have you or someone you know ever been replaced or laid-off from a job due to a downsizing? With technology becoming ever popular in today’s world chances are your answer to that question is YES. If you, yourself, have not been replaced there is a very high possibility that someone you have become acquainted with over the years has been. In this age of rapidly advancing technology, humans just simply are not needed to complete certain jobs as they have been in the past. Of course, there are still jobs available that a machine just simply cannot do but most jobs have since succumbed to modern technology and drastically changed in the past twenty years. An example of this change is the downfall of many “brick and mortar” office buildings and stores. Many companies have found new innovative ways to bring in the same amount of profit and at the same time cut costs drastically. This is ever present in the movie rental industry. Blockbuster, a giant in the industry, has been forced to shut down nearly 1000 stores across the nation due to the high competition from NetFlix and RedBox. Both of these competitors are technology based companies that aren’t found in traditional brick and mortar buildings. RedBox is operated through kiosks placed in areas of high consumer activity and NetFlix is operated by streaming video selections via internet and by mail service. With basically no overhead there’s no wonder that Blockbuster, once king of home entertainment, has given up its crown for the younger, more innovative companies to compete for in the present and further into the future (Blockbuster Corporate, 2011).…

    • 1209 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    REDBOX is a “Coinstar Company that rents DVDs for a dollar a day through vending machines in more than 25,000 convenience store, supermarkets, and fast-food restaurants” (Kolter and Armstrong, 2012, p. 370). REDBOX was the first of its kind to offer affordable daily DVD rentals from a kiosk. REDBOX is still in competition with Blockbuster and Netflix in the DVD rental market. However, REDBOX is a step ahead. They realize the high cost of rental and membership fees consumers can endure, so they offer a unique distinguishing marketing tool, $1 a day rentals. Imperative to their success, REDBOX uses a sophisticated software system designed to skillfully deliver DVDs to consumers instantly at the touch of a button. REDBOX does not anticipate cutting back on its products or kiosks; instead they are diligently trying to fulfill higher demands from consumers by using the future of technology. “REDBOX operates more than 24,000 DVD rental kiosks in McDonald’s, Walmart, Walgreens,…

    • 1637 Words
    • 7 Pages
    Powerful Essays

Related Topics