Competition in the Movie Rental Industry

Competition in the Movie Rental Industry Research Paper example
Research Paper
Pages 5 (1255 words)
Download 0
Competition in the Movie Rental Industry Name Institution Tutor Date Competition in the Movie Rental Industry The movie rental industry has attracted many business organizations in the last few years. These organizations continuously adopt new techniques and ideas to maintain a competitive advantage.


Suppliers adopt strategies such as patents in order to acquire supremacy within the industry. Companies provide attractive movie prices and services in order to control the buying power of their customers. Buyers have several companies to choose from, and these companies must strive to keep their customers. Competition is high in the movie rental industry due to easy entry by new companies. There are several companies with similar products at reduced prices, which increase competition. Some of the new entrants provide substitute products such as cable services. Customers subscribe to cable providers, and they gain access to several movies at a reduced monthly price. Competitive rivalry between companies creates the need for new strategies and businesses enjoy a competitive advantage only for a short time. One of the five forces of competition is supplier power. Companies in the rental business acquire their content from studios and movie distributors. The movie industry has several studios such as Walt Disney, Pixar, and Warner Bros and other distributors from which rental companies can choose from. The number of suppliers and the uniqueness of their products determine the supply prices. Blockbuster purchased Movielink which is a leading movie downlink service and reduced the need for DVD’s and plastic cases (Blockbuster Corporate, 2009). ...
Download paper
Not exactly what you need?