Movie Rental Industry

1. Is buyer power low or high?

High! Especially when it comes to going out and actually renting a movie there are several options to choose from for the buyers.

2. Is supplier power low or high?

This seems low when considering outdoor rental stores, but high when considering online renting stores such as Net Flix. This supplier power is going down however as blockbuster and possibly amazon are coming to compete.

3. Which substitue products and services are seen as threats?

One of the biggest threats that I see towards movie reantal stores is that of Redbox. The convenience of location, and price of rental is hard to beat. As for threats to the online rental world, the more places you can choose from the more buyer power goes up and the supplier power goes down. As for threats to the online world i definately see I-Tunes taking a large chunk out of the other companies a it attracts so many people with its prices and convenience.

4. Barriers?

As for barriers with online movie renting having the IT knowledge comes up as number one in my mind. If a new startup service wants to compete with one of the more popular companies it needs to find a way to be more convenient and perhaps quicker than its competitors.

5. What is the level of rivalry?

Currently the level of rivalry doesn't seem too high however as technology continues to advance i see this going way up.

1. Net Flix

2. Block Buster

3. Hollywood Video

4. Red Box

5. I-Tunes

Currently this seems like a safe Industry to enter as long as you possess the techie knowledge to compete with the big guns out there already. Perhaps producing a way to get the movies to consumers faster and cheaper will provide that edge needed.