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Essay / SWOT Analysis of Redbox - 943 movie streaming market make it difficult for others to enter the online movie rental industry. Netflix has already built up an extensive library of movies and TV shows available to its members. It would take Redbox a number of years and resources to catch up to the infrastructure Netflix already has and is currently consumer-ready. Redbox should analyze the opportunity cost of entering a new market or staying and investing in the current kiosk market and making sure it is the best it can be. Redbox may be subject to the entry of other players in the kiosk market to operate a profitable low-cost business model. Blockbuster announced plans to enter the kiosk market, which would have taken some of Redbox's profits in a small percentage. However, in 2012, Redbox purchased the Blockbuster kiosk business. According to the Los Angeles Times: That evidence was clear Monday when Redbox, the nation's largest DVD rental company, agreed to spend up to $100 million to acquire Blockbuster-branded DVD kiosks operated by its biggest rival , NCR Corp., adding approximately 9,000 machines to its fleet. 35,400 existing (LA times 2012). Obviously, with Redbox's strong financial position in the market, it will be difficult, but not impossible, for other movie rental kiosks to appear. SWOT Analysis Conclusion: In conclusion, the SWOT analysis shows that Redbox has many strengths to be profitable and has potential for future growth in the industry. The DVD movie rental industry is still in the middle of paper...until they start charging them the full price of the movie. Deploy more kiosks with a projected profitability of $50,000 or more. Expand outside the United States. , Puerto Rico, and the United Kingdom (where technology moves at a slower pace and people are not as familiar with Netflix or VOD). References Blu-ray Discs: "We're not dead yet." (nd). Retrieved April 13, 2014 from http://www.consumerreports.org/cro/news/2013/05/blu-ray-discs-we-re-not-dead-yet/index.htmDEG 2013 End of Year Releases Home Entertainment Report - DEG. (nd). Retrieved April 12, 2014 from http://www.degonline.org/news-releases/deg-news/deg-releases-year-end-2013-home-entertainment-report/Gamble, J. and Thompson AA (2013) . Redbox's strategy in the movie rental sector. In The Essentials of Strategic Management: The Quest for Competitive Advantage (pp. 295-303). New York, New York: McGraw-Hill/Irwin.
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