Redbox Case

Executive Summary

Currently, Redbox does not have a mission or vision statement out for the public. This is a problem since the mission and vision statements are an important aspect of a company. However, in their 2010 annual report, I did find out that one of the goals of Redbox is to be able to achieve satisfactory availability rates to meet consumer demand while also maximizing Redbox’s margins. Nonetheless, Redbox should provide its customers and the public with mission and vision statements. My recommended mission statement can be found in Exhibit 1.

Redbox has been successful renting DVDs ”on-the-go”, however, just like the convenience drove customers to Redbox kiosks, new technology can drive them away. The upsurge of online streaming seems to be the new “thing”. In order to combat this problem Redbox needs to develop a streaming business that can compete with the likes of Netflix, Apple and other rivals (Redbox rivals can be found in Exhibit 2). If Redbox can accomplish this task, it will give Redbox further growth expansions providing them with a competitive advantage.

Situation Synopsis (extended SWOT)

A quick SWOT Analysis lays out Redbox’s standing:

Strengths Weaknesses

Cheap Rental Prices $1.20+tax Limited only to New DVD Releases

More clients because of No membership fees Maintaining physical stock

Various Locations Poor advertising

1st of its kind Limited functionality of machines

Offers free DVD promotion rental 28-day delay of new releases

No late fees to customers

Opportunities: Threats

PC Rental Games Netflix- best streaming service available

Video Streaming Blockbuster

Counsel Games On Demand Channel, Apple TV, Hulu

Monthly Membership Public Libraries

Expand Overseas (UK, China Canada)

Strengths Paragraph

Since 2004 Redbox has differentiated itself by the 1st of its kind to go into the automated DVD rental kiosk business. Their kiosks are primarily installed in various locations such as leading grocery stores, drug stores, and restaurants. They are user friendly by having customers use a touch screen to select their titles, swipe a valid debit/credit card and receive their movie(s) (See Exhibit 3). With a low cost of 1.20 + tax per title, the process is designed