Mis Paper on Movie Industry

One hotly repugn and lavishlyly competitive industry is the film rental condescension. You behind rent motion-picture shows from local video letting stores, you can order pay-per- bring in from the comfort of your own home, and you can rent videos from the Web at such sites as NetFlix. Using Porters Five Forces Model, evaluate the relative attractive force of entering the plastic film rental business. Is tainter precedent impression or high? Is supplier military group down in the mouth or high? Which substitute merchandises and service are perceived as threats? Can rude(a) entrants easily enter the market? What are the barriers to admittance?What is the level of rivalry among being competitors? What is your overall view of the movie rental business? Is it a unspoiled or bad industry to enter? wherefore? The model I will be use to evaluate the relative attractiveness of entering the movie rental business is Redbox that pack become a leader in kiosk videodisc r entals with low outlays and ease of renting movies. Buying world-beater is low in this market because thither is only a few distri scarceors and the each are selling the comparable movies so the value they pay is relativity the homogeneous for each guest with very little set difference.The impairment of movies has gone up on the newer types of DVDs ( blu-ray) simply it has gone up for everyone, yet the volume of movies sold by Redbox offsets that increase. The bargaining power of the customers determines the pressure customers put on a item market. Redboxs business model considers this in the succeeding(a) ship canal Customers generally do not buy large volumes of the mathematical product. There are only a few operators in the industry. The fixed monetary value by suppliers is high, but this applies to competitors as well. There is really no legal substitute for the product.Customers are price-sensitive, but Redbox provides the product cheaper then all of its competitor s. Customers can not let out the product. The product is of strategically importance entertainment. The threat of alternate products does not exist. It is only the distribution of the product that has resource modes. The customer gets the same brand of the same persona with Redbox as with any other seller in the industry. Close customer relations do exist, but not in the conventional sense however, it exist through customer service and online.There is no notable difference in the price for execution except the ease of obtaining Redboxs products. Redboxs business model deals with the different pressures of new entrants in the next ways Competition would have to develop an first step of significant size to be considered a threat. The have secured more of the prize locations for their kiosk (Wal-Mart, McDonalds, Walgreens). A troupe would be hard press to find develop locations to struggle on the same level as redbox.Considering the volume of hardware, software and personne l the initial cost to competitors would be very high. The machines are extremely big-ticket(prenominal) plus having the software and personnel to run them. alert competitors, ( blockbusters) though experienced, are not prepared to contest in a kiosk rental capacity. hardly they are moving in that direction Blockbuster as an example has said it will boney some of it stores and put in kiosks instead, called Blockbuster Express. The committedness in this industry is to the product, not the distributor.Existing competitors will have to completely reinvent their business to compete in that Market. Most competitors strategies are out-dated and are playing catch up to redboxs business model, The product is the same between competitors it is Redboxs kiosks presence that makes it to a greater extent attractive. The market growth is constant. Rivalry among competitors is very high and they are always looking for more ways to bring the customer to them and away from the competition, the y use advertising, promotions, and price cuts to get customers to use them.Redbox has done a total job of competing by using the low price of its product verses it competition. Before redbox an average rental was between 3 and 4 dollars for one or ii nights. With redbox lowering the price to one dollar a night and using the convenience of an atm modal value platform it set the competitors scrambling to match that price point. I have a different view of the movie industry then most I liveliness because of the situation I am in as owning my own store for the last ten years.When I first started out we only had vhs tapes and they were very lordly to buy for rental which was offset by the point that you could not buy new release at Wal-Mart for 30 to 45 days so the customer had to rent from you. With the invention of the dvd the studios began selling to Wal-Mart on the same day it came out at the video store, so now customers could buy it instead of renting it of course the price ca me down but so did the profits. Then with redbox entering the market the total price point changed. The dollar price point does not leave much room for profit unless there is a large turnover.The small mom and protrude stores are hard pressed to compete in this market because they can not buy in volume or sell as many products to make it affordable. If I was starting my business straightaway I would not open a brick and trench mortar store I would try to get into the kiosk market. But I would do it in a way that would be unique. I would go to littler markets with less competition and sell my product at a higher price then redbox but cheaper then the brick and motor stores. Works Cited http//www. slashfilm. com/2009/09/16/blockbuster-may-close-20-of-locations-is-the-chains-future-kiosk-only