Redbox Business Model Essays Examples
The Redbox Business Model
The location of the nearest Redbox kiosk is at 7-Eleven 17922 Bothell Everett Highway, Bothell, Washington 98012. The Redbox business model has been successful due to its consideration of the current business environment in the United States.
Based on the video by Nickels (2011), there are three important takeaways from the Redbox model: (a) starting with a consumer need, (b) step-by-step planning, and (c) understanding of the total business environment. First, there is this understanding of the need to watch movies by the United States consumer base, and associating this need with the business need of partner companies such as McDonalds and 7-Eleven. Second, they did step-by-step strategic planning in their business growth. They started with making one Redbox kiosk profitable, and then to a particular region, before they went full-blast in the whole U.S. The key here is consideration of the factors that made each step successful. Redbox is now the biggest player in physical media rental such as DVD’s, Blueray discs, and video games in the United States. Lastly, Redbox has a basic understanding of the economic and legal, technological, competitive, social, and global environment they have to consider. For the economic and legal environment, they complied with government requirements for accessibility by people with disabilities and minors. For the technological environment, Redbox uses the power of the internet for consumers to find the nearest kiosk and the directions leading to it, search for a movie in their database, and reserving the movie. As seen in the video, they are also monitoring their sales in real time through technology. For the competitive environment, They are also considering future business trends in online streaming and interface with smart televisions. They want their business to evolve with the market. For the social environment, they are considering demographics and consumer trends. For example, in a grocery store, they plan their products to cater to an adult and female market; while in a convenience store, they plan their product to skew with the younger and male market. They also mentioned of diversity in the workplace to offer good services to a diverse U.S. consumer base. They are also accounting the larger global environment. They have mentioned of the advantages of investing and doing business in the United States. As a whole, these environment considerations help them in delivering quality service and goods to their customers.
Nickels, W.G. (2011). Redbox video presentation. McGraw-Hill Erwin. Retrieved January 7, 2015 from http://www.viddler.com/embed/8cc660fc/