Red Box

Topics: Marketing, Renting, Self-service kiosk Pages: 2 (286 words) Published: December 5, 2014
Strategies:
Low prices:
$1.2 per day -$3 cheaper on average
Convenience:
Packed into high traffic locations
Supermarkets
McDonald’s
Drugstores
Increase kiosk locations
Since 2009 locations have increased from 20,000 to 34,600

The se strategies are unique and cost efficient
Unique because no other movie rental company uses kiosks
Which in turns reduces initial investment and operating costs

SWOT:
Strengths
Own websites
Return any movie at any
Kiosk
Cheap prices
Weaknesses:
Could receive damaged product
Not a huge selection or variety of movies

Opportunities:
At home delivery
Increase storage capacity of kiosks
Online streaming
Add TV series to kiosks

Threats
Other kiosk DVD rental companies like Blockbuster Express. DVDX press Netflix. Hulu HBOGO

Worry List
1. How to sustain the company’s present rate of growth in light of slowing buyer demand. 2. Whether to expand the company’s product line
3. Whether to expand into foreign markets rapidly and or cautiously 4. What to do combat the aging demographics of the company’s customer base.

Recommendations;
1. For Redbox to continue growth they need to expand product lines and expand into foreign markets. If Redbox growth will not continue if they don’t do either of these two things due to the fact the growth rate of one single product will eventually plateau.

2. Redbox should expand their product line for example. They need to offer TV series and digital downloads. Both these product expansion would allow Redbox to compete with Netflix.

3. They should go into foreign markets but need to do so cautiously.

4. The aging demographic today should have no problem using this product due to the current advancements in technology that is used today. The only trouble will be with the elderly who do not understand touch screens and products required for Redbox.
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