External Environment Analysis For Redbox

1411 words - 6 pages

The company I have chosen to do the external environment scan is Redbox.
Redbox is in the movie rental business via self service kiosks. Redbox is wholly owned subsidiary of Coinstar Inc.

Laws and Regulations:

There are some specific laws and regulations under which the movie rental business like Redbox should operate. But due to the growing popularity of renting videos through mail, online and kiosks, most of these laws will probably have to change or modified to fit the new way of people renting and watching movies.

Age of Renters – This law for who can rent specific videos follow the same guidelines set by Motion Picture Association of America. These guidelines are based on ...view middle of the document...

Technology

It was a considerable technology jump in 2005, when Redbox began its use custom designed self service kiosks with interactive touch screen and sign, a robotic disk array system and web-linked electronic communications. Customers are now able to check real time inventory on the Redbox website and even able to reserve their movie before driving to the kiosk.

However, today renting and delivering movies over the Internet is largely getting popular. There are already players like Netflix which can stream movies through your latest TV and DVD players. Bigger players like Google and Apple are also actively pursuing this market which may mean that in a few years people may not be willing to drive to a kiosk and instead just rent it online at their convenience. Also, these online services will get more affordable and popular as more players enter this market.

Demographics

Redbox has more than 22,000 kiosks across the US in fast food restaurants, pharmacies, grocery stores and convenience stores. This is a great advantage has there is always a heavy foot traffic to these locations and they belong to all ages, ethnic cultures, professions, gender etc. The kiosks are positioned to encourage shoppers to pick up DVDs on their way out. The customers and employees are spread pretty evenly across the country so the demographics change may not have a huge impact.

Increase in Population may likely generate additional revenue with increase in customer base. Each kiosk generates around 45,000$ in revenue each year. Increasing the number of kiosks at good locations will increase the number of customers and profitability for Redbox.

Social Issues

Some people have promoted the idea that movie rental services like Redbox cannibalize the market for DVD sales and theater going audience. Movies are no longer considered an event like before in this industry has people know that within a matter of 2-3 months the movie is going to be available on DVD. But despite this the truth is that companies like Redbox help to grow overall interest in and purchase of DVD entertainment. According to customer research, a majority of Redbox renters report their typical DVD purchase is result of having previously rented and enjoyed the title. The survey also concluded that 42% of Redbox’s active customer base is renting more DVDs than before Redbox entered this industry. This model can be win-win situation for Redbox, movie studios and most importantly the customers.

There are some other issues like Piracy which prevail in the entertainment industry which estimated cost the US economy $20 billion per year. Piracy prevents the people in this industry to not get their full royalty for their intellectual talents.

Suppliers

The main suppliers for the Redbox and other movie rental business are the movie production houses which own the copyrights of the movies produced by them. Three major studio houses 20th Century Fox, Warner Brox and Universal...

Other Essays Like External Environment Analysis for Redbox

Accounting Essay

1806 words - 8 pages This memorandum will analyze the competitive environment that Blockbuster and Netflix face. The two firms will be compared through their vertical statements and ratio analysis. This memorandum will use Blockbuster's and Netflix's most recent 10Ks (2010) to analyze these two firms. Competitive Environment Blockbuster's main business activities are providing both in-store and online movie rentals, in-store game rentals, in-store retail products

Case analysis format

281 words - 2 pages Case Analysis FormatCase BackgroundEnvironment AnalysisGeneral Environment (opportunities & Threats)Industry Environment (opportunities & Threats)Internal Environment Analysis (Strengths and Weakness)Assumptions - give your assessment and conclusion from the external and internal environment analysis in term of the following:General environment stabilityIndustry Growth ProspectFinancial strength of the companyProblem Statement - state

Bank of America

1833 words - 8 pages merica Corporation. Assessment of the external environment of the financial services sector; an internal/external assessment of B of A.; a strategy assessment; and recommendations to the Bank of America on how to maintain and strenghen its competitive position. Paper Introduction: strategic Management analysis bank of america Introduction The report presents the findings of a strategic management analysis ofBank of America Corporation a

Finanance

1043 words - 5 pages through online like Netflix, Amazon, Apple iTunes, Redbox, VUDU, and not to mention the remaining local movie rental business owned by private investors. The attractiveness of entering into movie rental business is greatly depends on the uniqueness of the products available to the buyer. The suppliers may venture a movie rental business but the odds of success and power is quite low. However, there are still some traditional rentals stores

Strategic Intent

913 words - 4 pages in two aspects including external environment which involves the general environment, industry, competition, threats and opportunities, and on internal environment involves analysis of strength and weaknesses. The strategic intent for the SS secondary school comprises with the mission, vision and objectives. SS Vision is to create excellent educational opportunities for economically disadvantaged Tanzanian students, by providing education in

Ba301 Paper

732 words - 3 pages comes to a store to try out a product, but instead of purchasing it from the place they visited, they will search for a better price online. Best Buy started to release their concerns to shareholders about this in 2012 and enacted strategies to attempt to overcome this type of consumer behavior, but unfortunately still struggles with this phenomenon. Best Buy has used to combat this is launching a Customer Loyalty Rewards program called My Best

Blockbuster Is Fighting for Survival

1149 words - 5 pages Principals of Management: Module 2 Blockbuster is fighting for Survival A SWOT analysis is a structured planning method used to evaluate a firm’s strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. Blockbuster was the world’s largest video rental chain. They provided rental movies and game entertainment that saw record high numbers when they opened their doors in 1985. However over the past

External and Internal Environmental Analysis

1516 words - 7 pages and training. Summary/ Conclusion In a nutshell, it can be inferred that, for an organization to develop an edge over their rival firms, it has to apply both external and internal environment analysis. This allows the company to conduct different assessments to determine their strengths, weakness, opportunities, and threats. An analysis is very necessary for the survival and growth any business enterprise. It allows profitability

Business Perspectives

1247 words - 5 pages groups where collective information is being shared. It analyzes the social impact of external factors. Each letter in PESTLE represents a component of the external operating environment. They stand for Political, Economic, Socio-cultural, Technological, Legal and Eco-environmental. This analysis will lead to an assessment of external opportunities and threats. PESTLE analysis find out where the business or product is in the context of what

Strategic Analysis of Koh Brothers

595 words - 3 pages Part 1 – Industry Analysis Your group industry analysis should focus on industry trends and on the firm competitive environment. Feel free to adjust the outline below in the most meaningful way for the industry you selected. The important point is to cover all essential areas in a clear and concise manner, and to highlight the main external strategic issues the firm is confronted to. The last part will ask you to focus on the firm strengths

Swot the Hotel

574 words - 3 pages using past history, current conditions, and future reservations managers are able to generate data to analyze for forecasting rates. Salerno makes a point to direct management to conduct a SWOT analysis as part of their revenue management. A major component in strategic management is a SWOT analysis, where a company identifies internal strengths and weaknesses and external opportunities and threats. By understanding the hotel’s current

Related Papers

An Analysis Of Impact Of External Environment Factors On Hainan International Ltd And Its Strategy Of Dealing With These Factors

2931 words - 12 pages BUSINESS FUNCTIONS CORP1904COURSEWORK ASSIGNMENTAn Analysis of Impact of External Environment Factors on Hainan International Ltd And Its Strategy Of Dealing With These FactorsCONFIDENTIALSummaryHainan International Ltd, as a class one contractor based in Tanzania and working in East Africa market actively, has been successfully since incorporated in 1998. Hainan is developing from a relatively small capital to a reputable contractor in Tanzania

The External Environment In Which Businesses Operate Can Have A Significant Effect On Their Success. To What Extent Do You Think The External Environment In The Uk Is Favourable For Businesses At The...

1534 words - 7 pages The external environment in which businesses operate can have a significant effect on their success. To what extent do you think the external environment in the UK is favourable for businesses at the moment? Justify your answer with reference to external factors and/or businesses that you know. (40 marks) External environment in the UK can be favourable in any market to a business based on social and economic factors. This is important because

Q1. Comprehensive Analysis Of Coles Myer's Resource Profile (Perth) Q2. Porter's 5 Forces Model For Analyzing Cml 's Operating Environment

1428 words - 6 pages Q1. Comprehensive analysis of CML's Resource Profile (PERTH)Financial resources (Financial Ratios& Du Point): For Performance analyse, CML has a decreasing trend on Profit margin , ROA, and ROE. This implied CML's ability to generate profit has fall. ROE has declined significantly due to 50% reduction on OPAT , but they were relatively stable during 97-00. In 2001, the Asset Turnover rate has slightly decreased as a result of drop of

Mystic Monk Essay

3181 words - 13 pages STRATEGY IN THE MOVIE RENTAL INDUSTRY 1. What are the chief elements of Redbox’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Redbox is taking? What type of competitive advantage is Redbox trying to achieve? 2. What does a SWOT analysis of Redbox reveal about the overall attractiveness of its situation and future prospects? 3. What strategic issues or problems