Cooperative Strategies

Discussion questions for Case Redbox and Chapter 9 Cooperative Strategies:

1. What are the challenges Redbox is facing now? What’s Redbox’s core competency, if any? What strategies do you recommend Redbox to take to deal with these challenges? Based on your analysis on Redbox’s core competency and external environment, do you think Redbox can effectively implement your recommendations?

2. If you believe Redbox’s own core competency or resource and capabilities are not sufficient to respond to the challenges, what resources and/or capabilities do you think Redbox will need? Can Redbox acquire theses resources/capabilities through merger and acquisition, through strategic alliance (either equity alliance or non-equity alliance)? What are the pros and cons of each approach?

3. Consider the current relationships between Redbox and its strategic alliance partners, including movie studios and supermarkets, how do you characterize them (equity or non-equity alliance, business-level, corporate-level alliance)? What type of market (slow, fast, or standard cycle) is Redbox competing in? What are the reasons to form strategic alliance based on the market-type?

4. How can Redbox benefit from these alliances (think in terms of economy of scale/scope, market power, financial economies, etc.)? What are the potential risks in these relationships? What measures can Redboxtake to mitigate the risks?

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