Redbox Is a Company Specializing Research Paper

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Conclusion

Redbox has built its success based on a sound business model, but has jeopardized this success by implementing business practices that upset its suppliers, such as selling new release DVDs for as little as $7 two weeks after release (RedOrbit, 2009). Without the financial strength to battle the upset suppliers, Redbox has been forced to make concessions that remove some of its competitive advantages in the marketplace. This highlights the importance of building good channel relations in an industry where your suppliers provide the product that your customers really want.

The Internet strategy of Redbox is another area where the company is both strong and weak. Its reservation system is a source of strength, providing a service that customers find valuable.

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However, the fact that Redbox is well behind Netflix in movie streaming does not bode well for the company's future. Redbox, therefore, is a company that has some strengths to build on, but will need to shore up its weaknesses if it is to continue thriving in the future.

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