...Introduction 3 Business and Financial Metrics 5 Business Segments 6 In Store 6 By Mail 6 Vending 6 Download to PC 6 Trends and Forces 7 Cyclicality of Rental Sector 7 The Future of Media and BBI´s Brick-and-Mortar Model 7 Saturation in Kiosk Distribution Market 7 Competition 8 In-Store Rentals and Sales 9 Movie Gallery 9 Online Rentals 10 Netflix 10 Amazon 11 Apple 11 Online Viewing 11 SWOT Analysis 12 Strengths 12 Weaknesses 12 Opportunities 12 Threats 13 Summary 13 Executive Summary Movielink is the leading movie download service offering U.S customers an extensive selection of new and classic movies, foreign films, TV shows and other hard-to-find content. It is a web-based video on demand (VOD) and electronic sell-through (EST) service offering entertainment for rental or purchase. It was created in November 2002, as a joint venture ($100 million investment) of most of the big studios – Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios, Warner Bros., and others on a non-exclusive basis. While it was only available to users in the United States, it was the first company in the world to offer legally downloadable movies from major studios. Today, Movielink is a wholly-owned subsidiary of Blockbuster Inc., purchased in August 2007, a leading global provider of in-home movie and game entertainment, with approximately 7,800 stores throughout the Americas, Europe, Asia, and Australia...
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...Coinstar, Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. The company owns and operates self-service Redbox kiosks that allow customers to rent or purchase movies and video games; and self-service coin-counting kiosks where consumers can convert their coin to cash, a gift card, or an E-certificate. Coinstar, Redbox's parent company, is led by a savvy management team. By maximizing the value of Redbox and investing in new technologies it is the best way to capture opportunities along with various dimensions such as new customer segments, geographic, product segments, and strategic moves. Coinstar has built a promising future by taking their kiosk-based business to a new level. Strategic investment, position and new technology lead the way to the competitive advantage in the movie rental industry. The Redbox Company is a subsidiary of Coinstar Inc.; it is a kiosk run retailer which provides movie rentals to consumers at an inexpensive rate. Redbox Automated Retail LLC began operations in 2004 with funding provided by McDonald's Ventures, a subsidiary of McDonald's Corporation. The initial Redbox vending machines were placed in a number of McDonald's fast-food restaurants. (Thompson, Peteraf & et al, 2012) As of December 31, 2011, the company had 35,400 Redbox kiosks in 29,300 locations, primarily in supermarkets, drug stores, mass merchants, banks, convenience stores, and restaurants...
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... those costs were high—and after about a month, people moved on to rent the next release, so the store no longer received money to cover the original purchase price. In 1997, CEO John Antioco found a solution. He negotiated a deal with the leading Hollywood studios. Blockbuster would purchase tapes for $6 upfront, then give the studios 40 percent of the rental revenue. Competitors could not match the cost savings. About 2,500 of them (10 percent of the U.S. market) went out of business. понедельник, 5 декабря 11 г. Business problems and decisions But, entertainment technology rolled on. By 2001, the world was quickly switching to DVDs late 2001, Blockbuster again had to write down its inventory of tapes (and many video games) by $450 million. Eliminating 25 percent of its VHS inventory, the company moved into DVDs. The growth in DVDs continued. By early 2002, U.S. consumers had purchased over 31 million DVD players. for movies. In Viacom got serious about divesting Blockbuster. In a press release on June 18, 2004, Viacom announced that it would split off...
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...Summary The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes. Assignment Questions 1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. Threat of New Competition: Netflix has almost zero threat of new competition. Any new competition would have to overcome large capital expenses to get started; these expenses include obtaining TV show and movie rights from the studios. Even if the starting expenses are obtained, the new company would have to be innovative and grab a hold of the market quickly to be successful. Threat of Substitute Products or Services: Netflix has a lot to worry about with this being the strongest of the five forces. Where Netflix offers DVD rental and Streaming service, it is in a market with other viewing formats such as Video on Demand and Pay-Per-View. Many moviegoers have membership to one or more of these services and switch back and forth between them to suit their viewing needs. Bargaining Power of Customers (Buyer Power): Users of Netfix have a ton of buyer power, they can easily compare Netflix to other DVD and streaming services and determine what seems reasonable for them. This causes Netflix to keep...
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...Analysis cont. Page 9 PESTLE Analysis Page 10 PESTLE Analysis cont. Page 11 PESTLE Analysis cont. Page 12 Current and Projected Labour Requirements (3-5yrs) Page 13 Current and Projected Labour Requirements (3-5yrs) cont. Page 14 Current and Projected Labour Requirements (3-5yrs) cont. Page 15 Gap Analysis Page 16 Monitoring and Evaluating Workforce Trends Conclusion Page 17 Reference List Introduction: This intent of this Workforce Planning Report is to ensure the correct management of current labour supplies and demands and those for the next 3–5 years and to enable Video Ezy to correctly and efficiently manage its overall workforce. Video Ezy is one of Australia’s best-known and largest names for DVD, Blu-Ray and video game rentals and purchasing in Australia, with both in store and online shopping available. Video Ezy employs 70 people at their head office in Rhodes, Sydney, New South Wales. With the inclusion of 375 franchise stores, over 2,600 people are employed under the Video Ezy banner. Video Ezy has also created synergetic partnerships with the likes of McDonalds, Coke, Virgin Mobile, Pizza Hut and Smiths. In the busiest hour on an average Saturday night, Video Ezy stores serve approximately 100,000 people. Company History and Background: Video Ezy opened in 1983 with the first store in Hurstville, Sydney. Video Ezy expanded rapidly and now boasts 375 stores nationwide. 2009 - Video Ezy acquired DVD retailer, EzyDVD Pty Limited from its administrators...
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...Netflix case study CASE STUDY HOME ENTERTAINMENT Extended Diploma in Strategic Management & Leadership Units: U7 Strategic Marketing Management U12 Strategic Planning U13 Financial Principles and Techniques April 2013 CASE STUDY HOME ENTERTAINMENT Extended Diploma in Strategic Management & Leadership Units: U7 Strategic Marketing Management U12 Strategic Planning U13 Financial Principles and Techniques April 2013 Student’s Brief Scenario You are employed as a marketing consultant in the home entertainment sector. You have been asked by Netflix, Inc. to undertake a strategic audit in relation to the organisation’s: * core competencies * competitive advantage * value proposition You have also been asked to consider how Netflix, Inc. can remain competitive in the context of developments in technology, rising competition and changing consumer behaviour. Consideration should be given to the organisation’s financial position, its strategic risks and mitigating strategies to overcome these risks. Edited Extracts from Chartered Institute of Marketing (Case study: June 2011) Contents Introduction 4 Movie and TV programme licensing and distribution 5 Netflix, Inc 6 Netflix – advertising and marketing 7 Netflix’s competitors 7 Top ten movie download services 10 Data protection issues 10 The future for the industry 11 The future for Netflix 12 References 13 Home Entertainment Introduction Total...
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...Blockbuster Video or Netflix This case started as Blockbuster Video but has morphed to include Netflix. The issues facing the two companies are similar, so you can choose to address the case from the perspective of either company. Just specify which perspective to use. In 1985, Blockbuster Video (now a subsidiary of DISH Network ticker: DISH) quickly became a sensation. Households had just begun to acquire video-tape players in earnest. Few people were willing to pay $85 to buy Hollywood videos. Cable TV existed, but most people still watched broadcast television stations, and only a few premium Cable channels existed. Satellite receivers existed, but the huge satellite antenna was generally only used by people who lived in the middle of nowhere and had the space to put the ugly dishes. Customers quickly jumped onto the idea of renting videos. The early market was dominated by small mom-and-pop rental shops that bought a few copies of hit movies and rented them in a small regional area. For a while, video-rental stores had a tinge of disrespectability because many of them rented adult videos. Then, Blockbuster Video went national with large, bright, well-lit stores. To remain family-oriented, the chain does not carry videos with anything more than an ―R‖ rating. Blockbuster quickly took over the market. The original system pioneered the use of bar codes. Customers carried a bar-coded ID card and movie cases were printed with specific codes. The computer system made...
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...2010 Santa Clara University MGMT 162- Capstone Professor Schneider Winter Quarter:2010 NETFLIX: A COMPANY ANALYSIS Prepared By Group 5: Alex Krengel, Annie Dudek, Rick Momboisse, Trish Paik, & Tyler Martin  Table of Contents I. Wall Street Journal Article and Executive Summary ..4 I A. Wall Street Journal Article 4 I B. Executive Summary ..5 II. External Analysis ..7 II A. Industry Definition ..7 II B. Six Industry Force Analysis ..8 II C. Macro Environmental Forces Analysis, Economic Trends, and Ethical Concerns ..15 II D. Competitor Analysis ..17 II D. 1 Netflix’s Competitors ..17 II D. 2 Netflix’s Primary Competitors ..17 II D. 3 Primary Competitors’ Business Level and Corporate Level Strategy ..18 II D. 4 How Competitors Achieve Their Strategic Position ..18 II D. 5 Willingness to Pay ..21 II D. 6 Comparative Financial Analysis ..22 II D. 7 Implications of Competitor Analysis ..23 II E. Intra-Industry Analysis ..24 III. Internal Analysis ..24 III A. Business Definition/Mission ..24 III B. Management Style ..24 III C. Organizational Structure, Controls and Values ..25 III C. 1 Organizational Structure ..25 III C. 2 Organizational Controls ..25 III C. 3 Organizational Values ..25 III D. Strategic Position Definition ..26 III D. 1 Corporate Level ..26 III D. 2 Business Level ..27 III D. 3 Resource & Capability Level ..28 Value Minus Cost Profile ..28 Value Chain ..28 VRIO Analysis ..28 Consumer Retention Analysis ..29 4Ps Analysis ...
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...Integrated Company Analysis December Integrated Company Analysis15, 2010 December, 15 2010 Scott Meyer Scott Meyer Angela Faloye Anjali Krishnan Nathan Schaff Matt Reuer Scott Meyer 26 Table of Contents Introduction .............................................................................................................................................................. 3 Executive Summary ................................................................................................................................................. 3 Marketing Analysis ............................................................................................................................................. 3 - 7 Competitive Analysis and Positioning ................................................................................................................... 3 Target Segments ..................................................................................................................................................... 4 Product ................................................................................................................................................................... 5 Price ....................................................................................................................................................................... 5 Marketing Communications ...............................................................................
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...1. “The Goal” defines throughput as “the rate at which the system generates money through sales”. Our textbook defines it as “the total elapsed time from the start to the finish of a job or a customer being processed at one or more workcenters”. Inventory is defined by “The Goal” as “all the money that the system has invested in purchasing things which it intends to sell”. The textbook defines it as “a stock of materials used to satisfy customer demand or to support the production of services or goods”. “The Goal” defines operational expense as “all the money they systems spends in order to turn inventory into throughput”. The textbook definition (found in table 7.1 on page 245) has a very similar explanation. According to Investopedia, it is defined as “a category expenditure that a business incurs as a result of performing its normal business operations”. Overall, I find Goldratt’s definitions to be more helpful. They provide a more “common sense” and general approach to operations. I especially like the inventory definition. It essentially encompasses anything that could be sold as inventory; any item that could be turned into cash. 2. “The Goal” describes a bottleneck as “any resource whose capacity is equal to or less than the demand placed on it. I see an example of this every day in the deli where I get lunch. There are two cashiers taking orders from two separate lines. Once they take an order, they give the customer a receipt with an order number, and...
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...Table of Contents Introduction……………………………………………………………………........1 Industry Overview………………………………………………………………2-8 Client Profile & Competitor Analysis……………………………………9-17 Comparative Analysis……………………………………………………….18-19 Consumer Analysis………………………………………………………….20-23 Consumer Insights………………………………………………………….24-29 Survey…………………………………………………………………………….30-31 Results……………………………………………………………………………32-41 Recommendations…………………………………………………………..42-45 Appendix I……………………………………………………………………..46-48 Appendix II………………………………………………………………….…49-55 References………………………………………………………………………56-57 Will Haven, Lucy Ross, Jessica Stephens, Lauren West & Bonnie Willard Redbox is leading the way in the premier industry of DVD rental kiosks. With Coinstar as its established parent company, redbox is currently surpassing its competitors with its number of self-service kiosks. Redbox’s growing popularity is facilitated by its physical distribution, which places the kiosk in high traffic locations such as WalMart, Kroger, McDonalds and Walgreens. Due to redbox’s standing as the progressive option for DVD rental, its decision to target the 18-24 year old demographic was evident. This demographic embodies the idea of innovation, experimentation, and dependency on technology, all of which are imperative to transform an introductory product into a nationwide brand. The following report provides secondary and primary research in order to construct an accurate glimpse of redbox and its emergent status within the 18-24 year...
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...the vending machines and their contents will move through a life cycle will be moderate. Moderate is used to describe the pace because the product will spend more time in the growth phase than any other. The time spent in this growth phase will be attributed to the public and private contracts needed to make this product succeed. These contracts will require time early in the growth phase for marketing to our intended targets. These targets will be primarily of government sorts with many of the private contracts obtained after the initial wave. The schools and other government contracts that are looking to be obtained will be obtained in the late introduction and early growth stage. This time period of growth will be the longest also in part to the introduction stage of establishing a market is already there. These machines are a replacement to the current system of vending machine foods. The marketing goal is to replace, not compete side-by-side with the no nutritional machines. The contracts that will be targeted will be aimed at not only a sales and revenue prospects but aimed at bettering the lives of the clients involved. This helps the marketing of the machines and food much easier to parents and school officials. Once the product has replaced the current “junk food” vending machines the product will have reached peek growth and enter the maturity phase. This phase will be differ slightly from average product maturity phases. The healthy vending machines; once...
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...Griffin MGT/210 03/26/2012 Melinda Murphree Employees’ Union As a supervisor I got news that the unionized employees were getting ready to take their complaints to upper management. After checking into the complaints, I found out what they were looking for and came up with some solutions to please both management and the unionized employees. The first of which is better and more equipped lunch room facilities. The second is a better percentage of dental coverage. The third is to have their union dues deducted before taxes and or the company pays for half of the employee’s yearly union dues. For the first item I would propose the company provide more modern lunch room facilities. This means better equipment and vending machines with healthy selections with all proceeds going toward a charity of the employee’s choice. The second is the employees are asking for better dental coverage, asking for 100% coverage. I would first consider that the company is already paying 25% of all union employees’ dental coverage. I would first propose the company only raise that to 40%, meaning the employees contribution will be 60% instead of 75%. The reason I would propose this is so the company will also be able to pay half of all their union employees’ yearly union dues. This not only benefits the company but the employees. The first will create a tax write off for the company by just replacing a few lunch room appliances. All of these solutions are a benefit to the company...
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...| 2012 | | Prof. Gervais Victoria Skarbinski | [Netflix] | A case analysis on the movie rental company Netflix. | The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system. Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent. Netflix’s strategy so far has included offering various plans that incorporate unlimited streaming to a viewing device from the internet and a mail order system that sends physical DVD’s to the customer for an unlimited amount of time without any additional fees (so long as they still have a subscription with the company). With consumers moving toward the digital era, which Netflix has embraced, Netflix has to focus on continuing to be an innovative leader in the movie rental industry. 1. Identify the key elements of Netflix’s strategy. What competitive advantages is Netflix trying to achieve? Netflix strategy consists of at least six major elements, but its key elements consist of: * Providing subscribers with a comprehensive selection of DVD titles. * Giving subscribers a choice of watching streaming content or receiving quickly delivered DVD’s by mail. * Offering nine different variations of their service with subscription costs ranging from $4.99 to $47.99 with a free one month trial on any service. One of the most basic features that...
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...AOL's vending machines look like? "White Castle burgers, five different varieties of Hot Pockets, Klondike bars and Oreo ice cream bars next to a sign offering a discount for Weight Watchers. I think it's safe to say that our vending machine area is being used as a Skinner box," reports Kristyn, a fellow AOL employee. One employee's behavioral experiment is another's paradise. "I'm really, really jealous," says Jon over at MTV Networks, after being informed of AOL's snack excesses. Featuring far more pedestrian fare like Rice Krispies Treats, Nacho Cheese Doritos and Reese's Pieces, MTV's vending options won't turn any heads. Jon laments that the only real stand-out is the 25-cent can of Coke. "I guess that proves that international conglomerates are in cahoots!" he says. Or it's just a ploy to keep people awake and alert for optimum productivity. Other big companies aren't faring much better. Jen gave us the scoop on IBM's snack selection, which was similarly standard, with plenty of chips, candy bars and the like. Still, they do try to push some healthier options. "There's a green leaf next to anything that is considered a 'balanced choice,' " says Jen. "It shows IBM's effort in trying to bring about some healthy options to a typically unhealthy way to get food." Don't expect to see any quarter Cokes, though. "The prices are really high, almost $2 for a small bag of chips," she notes. "Price alone would be the reason I wouldn't purchase from the vending machines." Maybe...
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