Redbox Case Analysis
Case Analysis: Redbox
Stefan Marroquin
31 January 2012
Strategic Management
Dr. Mark S. Poulos
Introduction Redbox is a leading provider of movie and game rentals in the Nation. Redbox offers self-service DVD rentals through over 22,400 kiosks throughout the United States, Puerto Rico, and the United Kingdom. (McGraw 20) In 2004 Redbox began spreading automated vending machine kiosks containing by and large new release movie DVD’s in high traffic shopping locations. Its products and operations include Kiosk DVD rental, online disc rental reservation, no late fee, recently released movies, and video game rental. (Hoovers) In February 2009, Coinstar Inc., who is also a leading provider of money transfer services and self-service coin-counting kiosks, purchased full ownership interest in Redbox Automated Retail LLC., (McGraw 20) In 2009, Redbox made up 67% of Coinstars revenue and now holds 27.9% of the DVD rental market share (Coinstar Analysis).
Executive Summary This analysis will examine the business model and financial position of Coinstars subsidiary company, Redbox. It will focus on the current and expected future situation, as well as provide recommendations for the critical challenges of continued growth of the company’s market share in the DVD rental business. The DVD rental industry is rapidly changing due to the continuing advancement in developing video technology. For that reason, the recommendations include both the continue development and expansion of DVD rental kiosks as well as developing a web based service to continue to compete in the highly competitive movie rental industry. The recommended actions are as follows: * Increase the number and distribution of DVD rental kiosks through creating strategic partnerships * Develop a web-based service to offer customers the ability to watch movies from the internet * Strengthen partner relationships
Mission/ Vision Statement Redbox shares every movie enthusiast passion
Stefan Marroquin
31 January 2012
Strategic Management
Dr. Mark S. Poulos
Introduction Redbox is a leading provider of movie and game rentals in the Nation. Redbox offers self-service DVD rentals through over 22,400 kiosks throughout the United States, Puerto Rico, and the United Kingdom. (McGraw 20) In 2004 Redbox began spreading automated vending machine kiosks containing by and large new release movie DVD’s in high traffic shopping locations. Its products and operations include Kiosk DVD rental, online disc rental reservation, no late fee, recently released movies, and video game rental. (Hoovers) In February 2009, Coinstar Inc., who is also a leading provider of money transfer services and self-service coin-counting kiosks, purchased full ownership interest in Redbox Automated Retail LLC., (McGraw 20) In 2009, Redbox made up 67% of Coinstars revenue and now holds 27.9% of the DVD rental market share (Coinstar Analysis).
Executive Summary This analysis will examine the business model and financial position of Coinstars subsidiary company, Redbox. It will focus on the current and expected future situation, as well as provide recommendations for the critical challenges of continued growth of the company’s market share in the DVD rental business. The DVD rental industry is rapidly changing due to the continuing advancement in developing video technology. For that reason, the recommendations include both the continue development and expansion of DVD rental kiosks as well as developing a web based service to continue to compete in the highly competitive movie rental industry. The recommended actions are as follows: * Increase the number and distribution of DVD rental kiosks through creating strategic partnerships * Develop a web-based service to offer customers the ability to watch movies from the internet * Strengthen partner relationships
Mission/ Vision Statement Redbox shares every movie enthusiast passion
Cited: Coinstar. 2010 Annual Report. Bellevue, WA. N.p., 2010. Web. 30 January 2012. Hoover 's Online. Redbox automated retail, Llc., Company Report: Products and Operations. Retrieved January 31, 2012 from Hoover 's Online. McGraw Hill