The Major Competitive Spheres Of A Video Rental Chain
Movie Gallery store
Movie gallery video rental chain is faced with tough spheres of competition. The stock that is currently available is Hollywood videos and two thousand four hundred namesake videos . The new technology is a major threat to business sustainability and for it to have market advantage. The new arrivals are the Net fix and the streaming videos. All movie –rental outlet face the same threat (Kotler, and Armstrong, 1999, pp 86).
Service –oriented economy and knowledge based economy according to Kotler and Kotler has to acquire competitive advantage for it to prosper and survive. Various factors determine the quality of service to be given to customers. First, is the quality of service and the ability of the service to satisfy the needs of customers. For the video supply chain to have competitive advantage, various strategies have to be implemented which cannot be imitated by the rival companies or it they imitate, the competitors have to incur a huge cost(Hitt, et all. 2007, p 56).
Having the competitive advantage enables the video chain to work better than other companies. The major competition that movie gallery store faces is of technology. In today’s economy, competitors are entitled to main movie outlets stores are becoming more complicated with the aim of satisfying the needs of customers and being loyal to quality service. Quality service is about two dimensions which are functional and technical (Kotler and Kotler, 2006, p 48). Technical dimension deals with the aspects in service provision that is tangible. Good service is about how the tangible services are provided. The functional dimension is about the behaviors of employees when providing service. This will determine the quality of service offered by the video store. Therefore, aspects like attitudes, skills and the behavior of employees towards the customers is important.
To gain competitive advantage, Movie Gallery store has to adopt new technologies in their products. Valuable service is that which customers are provided with the kind of service that satisfy their needs and is in the right proportion. These are the aspects that place competitive advantage and competitive market strategy to any business and particularly in the management of the video supply store.
Another strategy is to develop advertising campaigns. This advertisement should talk of the new release titles and new trends of movies. The challenge faced by the video store is lack of customers because they are getting movies from high speed internet connection , vending machines and through the mail. This has posed a challenge to large video stores like Block busters and Hollywood video which are closing down. The companies face looming default and bankruptcy.
Strategic brand management according to Kotler and Kotler, is a step which the video supply chain can consider. First is to position its brand, then impalement and plan for marketing of the brand. The video store should then interpret and measure the performance of its bran. Lastly, is to sustain and ensures growth of the value of the brand.
Both the intangible and tangible services should be improved by the video store in order to gain competitive advantage. The assets which are the kind of movies, have should be differentiated to make it difficult for competitors to imitate. Most especially the untangle aspects like skills, knowledge and attitudes of the employees (Keller, Lynch, Ellinger, Ozment and Calantone, 2006, 106- 124). Regions which have not been ventured have to be explored.
Reference
Hitt, M.A., R.D. Ireland and R.E. Hoskisson, 2007. Strategic Management: Competitiveness and Globalization. 7th Edn., Thomson-Southwestern Publication, UK.
Kotler, P. and K. Keller, 2006. Marketing Management Pearson. 12th Edn., Prentice-Hall, Upper Saddle River, New Jersey.
Keller, S.B., D.E. Lynch, A.E. Ellinger, J. Ozment and R. Calantone, 2006. The impact of internal marketing efforts in distribution service operations. J. Bus. Logistics, 27: 109-137.
Kotler, P. and G. Armstrong, 1999. Principle of Marketing. 8th Edn., Prentice-Hall, New York.
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