. Netflix offers “all-you-can-rent” one disk out at a time mail order rental of DVDs while Redbox rents individual disks on a daily basis at individual kiosks but provides frequent discount codes to reduce the price of disks to end users (occasionally even offering them for “free” to frequent customers). Which strategy is likely to be more profitable? Why?
Red Box strategy is more profitable as they are giving customers a thought that they are getting disks at a low cost compared to Netflix. Even though Red Box strategy is to get more customers and occupy the market but the strategy which they were following is good as people will get attracted to the idea that they are getting discount on discs and sometimes they were getting at a free cost.
So more people will buy more disks as they are getting them at a discounted price and more people will also prefer to buy from Red Box and new customers base will also increase compared to Netflix.
Compared Netflix Redbox strategy is good and is more profitable as people will prefer the company which provide good service and good offers than with none. Hence Red box stratergy is profitable.
. Netflix offers “all-you-can-rent” one disk out at a time mail order rental of DVDs while...
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