Maurice Tutor

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About Maurice Tutor

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Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 398 Weeks Ago, 5 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 05 May 2018 My Price 7.00

number of movie rentals

BLOCKBUSTER, NETFLIX, AND REDBOX COMPETE FOR MOVIE RENTALS29 Charging $17.99 a month for an unlimited number of movie rentals (three at one time), Netflix revolutionized the movie rental business with a one-day mailing service for DVDs and acquired 12 million subscribers and $1.5 billion in revenue. However, Blockbuster, the video rental giant from the $5.5 billion bricks-and-mortar movie rental business, decided to enter the mail-in delivery and online-DVD rental businesses. Blockbuster drove prices down to $14.99, attracting 2 million subscribers. Netflix responded with a cut-rate service of one movie at a time for $9.99 per month, which drove the net profit right out of the business. Use Porter’s Five Forces model to answer the following questions:

Questions

1. Does easy access to distribution channels at grocery stores for Redbox’s 22,000 vending machines indicate high or low entry threat in the movie rental business? Why? Why might McDonald’s be an even better distribution channel than grocery stores?

2. What economies of scale were available to serve as a barrier to entry in Blockbuster’s bricks-and-mortar movie rental business? Did NetFlix face a cost advantage or disadvantage?

3. Who are Blockbuster’s suppliers? Are they in a position to appropriate much of the value in the value chain? Why or why not?

4. What factors determine the intensity of rivalry in any industry? Is the intensity of rivalry in the movie rental industry high or low? Why?

5. Porter’s Five Forces model is sometimes extended to Six Forces of Competition to include the threat to profitability imposed by disruptive technology. What disruptive technology has threatened the bricks-and-mortar and mail-in movie rental business?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 05 May 2018 08:05 PM My Price 7.00

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