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Free Netflix, Redbox, and Blockbuster Essay Sample

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The existence of competition within a particular industry is a normal phenomenon in business that seeks to improve the way various companies offer their goods and services to customers. This has forced companies like Netflix, Redbox, and Blockbuster to devise strategies that can to reposition themselves in order to remain competitive in the market. Repositioning is also done in order to ensure that the company is able its revenue earning and engages itself in relevant business that warrants profitability. Netflix, Redbox, and Blockbuster are American companies who operate in the entertainment industry to offer and distribute movies to the American and the global market (Schermerhorn, 2009). To perpetuate their existence, the companies have devised various ways that enable to remain competitive and make their businesses meaningful.

One of the strategies employed by the companies in order to counter competition from other firms relates to the mode of delivery of their videos to their customers. When Blockbuster suffered from bankruptcy in 2007, the high cost of their retail outlets almost drove them to collapse. However, the company together with Netflix opted for the cheapest mode of distribution. In order to reposition themselves in the market, Netflix and Blockbuster opted for the online and mail order form of delivery. The other strategy employed by the companies involve the option of using kiosk rentals which are less costly, have fewer employees than Instore and are located outside retail locations (Merrill & Lowenstein, 2010).

By the end of 2009, Redbox had more than 22000 kiosks while Blockbuster had 3000. This method was relatively cheaper and enabled the customers to access a greater variety of titles based on their preferences. The companies were therefore, able to reposition themselves and counter the effects of their competitions. With the inclusion of subscription plans, the companies were sure of getting constant revenue stream. Effective use of technology enhanced by video on demand is another strategy used by the companies to reposition them. This gives companies some strength in the sense that their customers are able to have immediate access to a large list of titles at lower cost. The companies have also taken advantage of Blu-Ray and broadband access. There has also been a significant partnership with other companies like TIVO, Xbox, and Samsung Internet TV. These methods have proved used to the companies as they battle for their market share with their competitors like Amazon and Apple Inc (Schermerhorn, 2009).

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