Redbox Case

1. Redbox as a company has strong key elements that keep them a player in the movie rental industry. Their main strategy is centered on attracting customers with of combination of low price and convenience. Redbox is also expanding the number of locations that include a Redbox kiosk. This company stands out as a competitor because of the way they distribute movies to customers. With a vending machine like kiosk, the company is in the process making renting movies even easier for customers. Based on the case, Redbox is doing more to focus on customer experience by making the movie renting experience incredibly user friendly and shortening the time it takes to rent a movie. Also, rented movies can be returned at any Redbox location which is a nice feature for the customer in the way that the movie does not need to be returned to the same location of the rental. Redbox also keeps kiosks in high traffic areas for a lot of customers to have access to and have placed kiosks at select chains including but not limited to Walgreens, Wal-Mart, McDonalds, 7-Eleven, and Kroger. Paul Davis, the CEO of Coinstar which is the parent company to Redbox stated that the core competencies of the company include, developed expertise in kiosk development, deployment and operations and in building solid relationships with the best known retailers.

2. Based on the information on Redbox, the most fitting competitive strategy would be the best cost provider strategy. Based on the definition, this strategy is focused on giving customers more value for their money by satisfying buyers’ expectations on key quality features while beating price expectations. With this being a blend of the low cost provider strategy and the differentiation strategy there is a focus on having the lowest costs and prices among competitors. Redbox has been able to follow this by having the best of both worlds for customers. The company was able to entice people to rent a movie while already out shopping,...