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Essay on “Driving competitive forces in the movie industry”

In the movie rental industry the five forces include limited options where there are a limited number of options that are available this mainly consist of Red box, Netflix, Blockbuster and small video stores. Most of the times renters are forced to choose among the above mentioned this is because there is a large number of buyers. This is favourable since it assists these companies’ to be in charge of market share over renting of videos. Convenience is also another factor the buyers are always going for more convenient and easier methods of doing things, because movie rental industries tend to be moving in the same way this ensures that at least everyone has a choice. Netflix and the other industries make most movies online this is favourable because inventories are not required and the issue of running out of movie copies is also avoided. (Solutions, 2009, p.56)

Economy is also a factor nowadays people enjoy watching movies but going to the theater to watch movies is expensive. The availability of the movie on rental basis is cheap and easy way to view a movie. It is cheap because renting prices are affordable it makes renting favourable. It is only unfavorable when one waits for three to eight months for the movie to be obtainable on DVD. A four factor is change in lifestyle as people get older they tend to change their lifestyle and this involves staying at home at most times which encourages people to watch movies. Rental movies hence become favourable. Changing in efficiency and cost compared to inventories renting movies is more efficient because less time is wasted and it also cuts on economical costs.

Netflix, Red box and Movies on Demand have thrived well because they have…

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