The Organizational Behavior Practices of Redbox

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The Organizational Behavior Practices and Techniques of
Red Box Automated Retail LLC



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


Company Mission, Strategy, Goals4
Company Core Values5
Information on CEO6
S.W.O.T. Analysis7
Corporate Culture8
Organizational Structure9

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 Denver Colorado. Coinstar Inc. bought 47.3 % of the company in 2005 and in 2009 purchased the remaining stake of redbox from McDonalds. Today redbox has almost 25,000 kiosks nationwide and passed 100 million rentals in 2008. It was ranked as the fifth largest DVD rental company in 2007 by Entertainment Merchants Association. (History of RedBox)

Company Mission, Strategy, Goals (A.M.)

One could say based on an article from that Redbox’s biggest goal is to “muscle its way into budget-conscious movie renters. “Their mission is to be the biggest DVD rental giant in the nation.” Redbox’ s customers are those people who reside in the United States and who are interested in renting DVDs and video games. Currently Redbox have kiosks only in the United States of America with their home office location based in Oakbrook Terrace, Illinois with locations in Hampton. Redbox is committed to growth and financially stability. Redbox announced on February 18, 2010 that they would begin renting Blue-ray movies which should take place by the middle of 2010. They are also testing other areas to market their products which include Reno, Nevada, Stevens Point, Wisconsin, Austin, Texas, Wilmington, N.C., and Corvallis, Oregon. In April 2007, Entertainment Merchants Association ranked Redbox as the fifth largest DVD rental company by revenues in the United States. Redbox also passed Blockbuster in number of locations in the same year. Blockbusters in a lot of locations are no longer in operations. In February 2008 Redbox passed 100 million rentals. Currently their two products are the DVDs and video games. Redbox is technologically current. They phased out their DVD Play-manufactured machines in April 2005 and contracted with Soletron, a subsidiary of Flextronics who are the manufactures of Xbox, Xbox 360 and Zune. Soletron was asked to create and manufacture the now custom kiosk design. The kiosk is a self-service...
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