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Redbox Case Study

Content type
User Generated
Subject
Management
School
Western Kentucky University
Type
Homework
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Running head: THE REDBOX CASE 1
The Redbox Case
Student Name
Institution Affiliation

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THE REDBOX CASE 2
The Redbox Case
Question 1
The main challenge Redbox has is having to rely on movie studios such as Warner and
Universal Studios to do business. As part of the agreement, the studios agreed not to release
movies until 28days after their initial release date, which would allow Redbox to receive and sell
movies at reduced rates. The challenge, here, was that majority of the people had already seen
the movie by this point and later on it appears on Netflix. It makes it hard for the people with
Netflix service. If Redbox wanted to reduce this period, they would have to pay more, an action
that would have to charge their customers more money hence negatively impacting on demand.
Redbox can implement the idea; something should be done on the marketing part to ensure the
added cost is covered by increase in returns, however.
Question 2
Due to the increasing competition from Netflix, Walmart`s Vudu, Apple TV and others,
Redboxs` own core competency, resource and capabilities are not sufficient to respond to the
challenges. To cater for this challenges, Redbox will require to merge with other online
platforms like Netflix for them to continue staying in business. For example, Netflix with 20
million subscribers serve the same customers with search for recent release online. On the hand,
Redbox offers physical DVDs movies for recent release, if the two were to merge they would
collect a lot of market providing their customers with more options. However, a merge affects
the creativity because there is minimum competition.
Question 3

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Running head: THE REDBOX CASE 1 The Redbox Case Student Name Institution Affiliation THE REDBOX CASE 2 The Redbox Case Question 1 The main challenge Redbox has is having to rely on movie studios such as Warner and Universal Studios to do business. As part of the agreement, the studios agreed not to release movies until 28days after their initial release date, which would allow Redbox to receive and sell movies at reduced rates. The challenge, here, was that majority of the people had already seen the movie by this point and later on it appears on Netflix. It makes it hard for the people with Netflix service. If Redbox wanted to reduce this period, they would have to pay more, an action that would have to charge their customers more money hence negatively impacting on demand. Redbox can implement the idea; something should be done on the marketing part to ensure the added cost is co ...
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