Netflix vs. Redbox - 1055 Words

A draft of Netflix vs. Redbox Netflix Strengths Netflix provides a subscription-style e-commerce service. Customers only need to sign up and pay $13.95-39.95 a month to borrow as many as 2-9 movies at a time with no monthly limit. If customers quickly watch the DVD and send them back, the monthly fee pays for quite a few movies. The relatively low monthly fee enables Netflix to compete with Blockbuster and other brick-and-mortar video rental business. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has less problem in predicting revenue or level revenues. * Being an on-line DVD rental store, Netflix combines the growing Home Entertainment Market and†¦show more content†¦* NetFlix and Musicland Stores paired up to begin a cross promotion program to promote awareness and sales of DVDs. NetFlix will point customers to SamGoody.com when they want to buy discs. In return, SamGoody.com will provide the purchase phase of NetFlix s Test drive program before they decide to buy. Customers who visit a page for a specific movie on SamGoody.com will also have the option to rent from NetFlix.com. NetFlix will also give the option to rent DVD from Netflix.com or buy it from SamGoody.com. * As a web based business, NetFlix has rapid growth potential with the popularity and development of World Wide Web, and DVD technologies. More and more people will accept and be involved in e-bussiness. NetFlix, the world s first and largest online DVD rental store, will develop fast. * NetFlix established promotional relationship with Amazon.com for the sale and rental of DVD. Amazon s reputation for its tremendous selection and first-class customer service will make it the ideal partner to handle sales to NetFlix s customers. NetFlix also looks forward to introducing millions of Amazon.com customer to its compelling DVD rental service through exclusive special offers and promotions. This might bring much more customers to NetFlix. * Playing Video games is a very popular amusement. Netflix will extend into video game rental business. Threats: * Traditional brick and mortar rental stores are a threatShow MoreRelatedNetflix vs. Redbox946 Words   |  4 PagesNetflix vs. Redbox Assignment 1. Netflix: The target segment of Netflix is frequent users. Netflix offers customers an ever-expanding collection of TV and movie titles. The pricing range of the subscriptions varies depending on the type of plan. All plans will allow customers receive a certain amount of DVDs every month. So it is suitable to the frequent users, who may watch the movies regularly every month. They do not need to pay the money, which is related to the number of movie they borrowRead MoreNetflix vs. Redbox Industry 897 Words   |  4 PagesHow is it that Netflix and Coinstar’s Redbox have thrived in the DVD rental business and brick-and-mortar companies like Blockbuster were forced into bankruptcy protection? According to CEO and founder Reed Hastings, value is the reason. As we know from class, value is defined by customer/consumer and companies that offer value turn buyers. One great example of a company’s value turning buyers into lifelong customers is Apple. Apples success with iPhones, iTunes and Mac computers have proven thatRead MoreNetflix vs. Blockbuster vs. Redbox1198 Words   |  5 Pagesstores are disappearing. Hollywood Video is long gone, and most Mom and Pop stores were crushed under Blockbuster s boot back in the 90 s. So, which option is best for you in the new world of movie rentals? Should you go with Netflix?... Blockbuster?... Redbox? Each of these big players have various pros and cons associated with them. I have used all three extensively and have made my decision on which is best, but your movie watching habits may be different from mine. So, with that inRead MoreValue Chain Analysis1651 Words   |  7 Pagescompanies; Netflix and Redbox companies. 2.0 Background information. Netflix is an online movie streaming and email DVD Company. The company offers consumers a chance to stream live various movies over the internet. In order to use Netflix, consumers are required to register on the company’s website. The registration will involve paying a monthly subscription fee. Consumers are able to stream movies and watch live televisions show to their personal computers or even television sets. Netflix is onlyRead MoreBlockbusters Rivalry with Netflix3189 Words   |  13 PagesBLOCKBUSTER VS NETFLIX INTRODUCTION Blockbuster history Blockbuster was founded by David P. Cook in 1985, a 34 year old entrepreneur from Dallas, Texas. Having past experience in providing database software and other computer services to industries like oil and gas, Cook had strong information system knowledge. His innovative idea of running a video rental business using a scanner to keep a track of the customer’s data and their rented movies, he came up with Blockbuster Inc which was a greatRead MoreHome Movie Rental Industry2485 Words   |  10 Pages(MGM340-1302A-04) Professor Charles Cullinane Home Movie Rental Industry Roxane Billiot May 5, 2013 I. Introduction to home movie rental industry A. Netflix 1. Background 2. History B. Redbox 1. Background 2. History II. Operational objective C. Netflix 1. Mission Statement 2. Expectations D. Redbox 1. Mission Statement 2. Expectations III. Specific operational challenges IV. Metrics E. Customer satisfaction F. Cost G. GrowthRead MoreBlockbuster Case Essay1919 Words   |  8 PagesFall 2011 | BlockBuster Case Analysis | | 1. What role has Netflix played in the development of Blockbuster’s strategic planning? How important is Netflix to Blockbuster’s future strategic plans? Before answering this question ,I would like to highlight that It s clear after reading the case that blockbuster main problem was making strategic plan without considering its scorecard as they never anticipated change or tried to early explore strategic alternatives and they never examinedRead MoreBlockbuster Declares Bankruptcy2749 Words   |  11 Pages435 – Organizational Change Robert Hamamoto September 19, 2011 Shortly before their 25th anniversary, Blockbuster files for bankruptcy protection with a Chapter 11 petition. The failing company couldn’t compete in today’s market against Netflix, Redbox, Apple, and other internet-based businesses that provided mail-order rentals or digital streaming. Their business model needed to be revamped to stay competitive. This paper will take a look at where the problem was, the measures taken to correctRead MoreRedbox3346 Words   |  14 PagesSummary Redbox Automated Retail LLC was started in 2002. It started out being an experiment, funded by McDonalds, with grocery style kiosks and DVD rental kiosks. Within the first year Redbox dropped the grocery side and capitalized fully on the automated DVD vending machine rental. In 2009, Redbox became a fully owned subsidiary of Coinstar. A strategic evaluation of Redbox’s internal strengths, weaknesses, opportunities and potential threats are the bases of this marketing plan. While Redbox exhibitsRead MoreBest Buy Internal and External Analysis5756 Words   |  24 Pagesthe products for their usage. | Power of Suppliers | Results | Remarks | Concentration of suppliers relative to buyer industry | High | Netflix can look for alternative suppliers that can allow them to release closer to the DVDs dates. | Availability of substitute products | High | Wide variety of high end and low end products. Examples: Sony and Apple vs LG and Insignia. | Importance of customer to the suppliers | Low | Suppliers have many other ways of distributing their products to dealer