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. 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.
Works Cited:
"Building Trust." In possession...
(2011). Shares of Redbox parent plunge 27% on earnings warning. Los Angeles Times. Retrieved April 10, 2011 from http://articles.latimes.com/2011/jan/15/business/la-fi-ct-redbox-20110115
Newman, J. (2011). Redbox readies streaming Netflix rival, but why? PC World. Retrieved April 10, 2011 from http://www.pcworld.com/article/219983/redbox_readies_streaming_netflix_rival_but_why.html
Pearson, S. & Milford, P. (2009). Coinstar's Redbox sues Warner unit over video terms. Bloomberg. Retrieved April 10, 2011 from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=apskdfBT_Zms
Pepitone, J. (2010). Coinstar stock soars 25% on Redbox growth. CNN Money. Retrieved April 10, 2011 from http://money.cnn.com/2010/10/29/technology/coinstar_redbox/index.htm
RedOrbit. (2009). Redbox DVD kiosks give Netflix a run for their money. RedOrbit.com. Retrieved April 10, 2011 from http://www.redorbit.com/news/technology/1708847/redbox_dvdkiosks_give_netflix_a_run_for_their_money/
"The Successful Partnership Pyramid" in possession of the author.
