Movie Rental Industry Netflix and Blockbuster Case Analysis Lydia Floyd Strategic Management MGT422 February 28‚ 2013 Introduction Netflix competitive strategy In order for Netflix to understand were the business lies as it relates to the competition it is important to seek the correct strategy in order to be and stay competitive. The five competitive strategies are * Low- Cost * Broad Differentiation * Best-Cost * Focused niche based on low cost * Focused niche based
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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. Growth V. Industry challenges addressed
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research) Movie DVD sales and rentals amounted to $24.9billion market in the U.S in 2007 that was up from $22Billion in 2002. Movie rentals were the most popular means of obtaining movies and the movie rental industry consisted of four segments: 1. In store rentals (2007 revenues of $5.8 billion) 2. Rentals via mail ( 2007 revenues of $2 billion) 3.Video on demand accounted for $1.3 billion ) 4.Vending machines $400 million. AMR projected that the online subscription spending for rental DVDs would
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Case Study: Redbox’s strategy in the Movie Rental Industry 1) Which of the five generic competitive strategies discussed Chapter 5 most closely fit the competitive approach that Redbox is taking? Why did you select the strategy you selected? The two main strategies Redbox focuses on are a combination of low price and convenience as well as increasing kiosk locations with high traffic. Compared to its competitors‚ Redbox’s offers a rental fee as low as $1.20 per day‚ which is $3 cheaper
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The Driving forces in a movie rental industry are the major underlying causes of changing industry and competitive conditions. Driving-forces analysis have three steps: (1) Identifying what the driving forces are (2) Assessing driving forces which impact Netflix and Blockbuster (3) Companies making strategy judgments Technology Since 2000‚ the introduction of new technologies and electronics products had rapidly multiplied consumer opportunities to view movies 1. Increasingly numbers
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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
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II. Operations Products (Service) The company provides a service‚ mainly vehicle rental‚ to replace a customer’s damaged or out of service vehicle. This service has been around for awhile‚ in this case since 1957‚ and appears to be in the mature phase. A case could be made that in the case of Enterprise‚ the service of vehicle rental is still in the growth phase since annual revenue‚ fleet size‚ employee size‚ and the number of locations has grown every year since the founding of the company
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the Movie Rental Industry EXECUTIVE SUMMARY: Analysis: The competitive forces in the movie rental industry are quite strong‚ as I will explain through the five forces model. There are a vast amount of substitutes for watching a movie. You can go to a play‚ sporting event‚ concert‚ out the lake/beach‚ go for a run‚ watch regular television‚ go shopping; I could go on and on. Also‚ torrenting or pirating movies is growing increasingly popular. Buyers have a strong presence in this industry mainly
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Current Situation 4 Case summary 6 CASE ANALYSIS 7 Chipotle’s Core Competences 7 SWOT Analysis 7 The primary and secondary components of Chipotle’s value chain 9 The chief components of Chipotle’s strategy 10 The generic competitive strategy 12 Comparison between Chipotle’s strategy and Moe’s 14 Weighted competitive strength assessment 16 EXECUTIVE SUMMARY Chipotle Mexican Grill is a restaurant company specializing in fast food. Started in Denver‚ Chipotle now operates 1‚230 stores
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5-310-507 SUNIL CHOPRA Movie Rental Business: Blockbuster‚ Netflix‚ and Redbox Jim Keyes‚ CEO of Dallas-based Blockbuster Inc.‚ was facing the biggest challenge of his career. In March 2010 Keyes was meeting with Hollywood studios in an effort to negotiate better terms for the $1 billion worth of merchandise Blockbuster had purchased the year before. In recent years‚ Blockbuster’s share of the video rental market had been sharply decreasing in the face of competitors such as the low-cost‚ convenient
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