Nick WoltkampRedbox Case Study 1. What are the chief elements of Redboxs strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Redbox is taking? What type of competitive advantage is Redbox trying to achieve?There were four key elements that make up Redboxs strategy. The first element is to charge a rock-bottom rental fee of only one dollar a day. Also with this Redbox allowed customers to buy DVD for only seven dollars. Another element of the strategy is to build stronger brand recognition by having more kiosk in more locations. The other element of the strategy is quickly deploying vending machine kiosks containing new release movie in high traffic locations like Walgreens and Walmart.From the five generic competitive strategies from chapter 5 Redbox is employing the low-cost provider strategy. The reason for this is because Redbox is the only movie renter that rents its movies for one dollar, and the company has low costs to operate profitably at one dollar per day. Based on what Redbox is trying to do we can see some competitive advantages that they are trying to achieve. The first advantage would be the low price no other company is offering there rentals for only a dollar. The second advantage would be the convenience with Redbox opening kiosks at all the major shopping regions the customer is all ways able to use the kiosk. The third advantage is the growing awareness Redbox has on its customers and showing them that Redbox is better then going to blockbuster or a local DVD rental store.2. What does a SWOT analysis of Redbox reveal about the overall attractiveness of its situation and future prospects?Redboxs StrengthsRedboxs strengths are being a dominant leader of the vending kiosk for movie rentals. The reason for this dominance is because Redbox has a total of 22,400 kiosks in operation in May of 2010. Another strength is its online reservation feature, with this future there customers are able to put a movie on hold with there smart phone then go pick up the movie at the kiosk. One of the last strengths that Redbox has going for them is a capable top management team. Redbox WeaknessesRedbox dose actually have some weaknesses that they can improve on. The one weakness that they can improve on is they do not have an internet-delivery capability. This is becoming a huge market and Redbox should find a way to get into this market before they are over ran by Hulu and Netflix. Redboxs OpportunitiesThere is a couple opportunities that Redbox can change is the growing revenues of the kiosk and experiment at raising the price of the rentals to a 1.50 instead of a dollar. Another opportunity is geographic expansion Redbox can grow all over the world and become one of the best known brands for DVD rentals. Redbox TreatsThere are a couple threats to the Redbox the first threat would be the kiosk that Blockbuster is trying to put out just like the Redbox kiosks. Another threat is Hulu and Netflix why would people want to go drive to get a movie when they can stream it right from there TV at home. With these streaming companies if people forget to return the movie they dont get charged money every single day which could add up quick. 3. What strategic issues or problems does Redbox management need to address? Draw upon the discussion on p. 87 in Chapter 4 to develop your worry list and to state the issues/problems in the recommended form.There are two main issues that the Redbox management need to address. The first main issue is should Redbox expand internationally, If they do want to what part of the world would be best to expand into. The other main issue would be How Redbox can profitably enter the internet delivery segment. They need to find out a way that they can compete with Hulu and Netflix with the streaming of movies, and not lose a profit. 4. What recommendations would you make to Redbox management? At a minimum, your recommendations should cover what to do about each of the strategic issues/problems identified in question three. In addition, each recommendation should be supported with convincing arguments based on your analysis of Redboxs situation.Recommendations that I would propose to Redbox management would first have to deal with the streaming and internet portion. What I would say to do is for all the streaming devices like the gaming systems, smart TV, and Rokus. They should make an app to work on all the systems that allows customers to stream the new movies for a price of 2 dollars. The reason for the two dollar price is because it would be cheaper then other movie apps and it would make people use the kiosk if they are already out shopping. The rental would only be available for 24 hours and after the 24 hours you can renew the rental for only a dollar a night or the rental will just be gone. The other key issue would be to go globally or not. For this situation I believe that Redbox should try expanding to the part of the world where the company has not tried before like Australia. The reason for this is because if Redbox can build a strong brand at a fresh new place then they know that they are here to stay for the long run.