As we know ,red box’s strategy are attracting customers with a combination of low price and convenience and rapidly expanding the number of shopping location with a redbox kiosk. but it still have some problems.
maybe we can identify by the suppliers,substitute products,buyers,competitor. 1:suppliers. redbox obtained dvd from movie studios . wholesale distributors,and third-party retailers.
but redbox had been contentious with some movie studios first. for example,fox and warner sell their dvd to redbox until 30-45 days after the release of movie dvds to retailers. t will have the big effect for redbox,it will make redbox lost many customers,because newest and hot movies can attracting buying behaviors on impulse a lot.
so,redbox’s core competitive also are quck and new. so,they try to obtain those from alternative sourse even at the regular retail price. so redbox make the license agreements with sony. they can receive deliveries of new veleases by the street date. so consider about the long term development,it is very important that make a good relationship with movie studios or other suppliers. what should do just tell them that we are friends,in the win-win situation. hould be have the good cooperation.
2:substitute products. we have to say,although physical dvds will be the preferred medium of home entertainment many years to come.. makert trend still go over to digital time. more and more people prefer like digital down loads. people need to see the movie in their own mobile equipments.
so we suggest redbox can cooperate with electronics product producers. create more business about digital or online down loads. 3:buyers. overtime,redbox customers have said also there are times that they want to watch an old classic,so,redbox should not only focus on the new releases.
edbox update the movie once a week. so should do some research. get know more about customer needs and then satisfy them.
4:competitor. rebox’s main competitor is netflix company. they provide the service for booking from internet net and then delivery to home. they paiy the fee monthly then can rent the unlimit times. so they have a lot loyal customers. Also have the community online and movie recommend system.
so we suggest redbox also can provide a new systerm let the redbox customer communicate each other. also like youtub,it is also the potential competitor. it must make redbox’s service more variedly.