This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

Coinstar: A Sleeping Giant Awakens INTRODUCTION This case describes a unique entrepreneurial company, whose leaders have demonstrated a knack for identifying obscure market niches. The rapid success of its Redbox kiosk division has drawn attention to Coinstars business model and creates an interesting opportunity to explore the dynamics within a company attempting to diversify its revenue stream and to discover a long-term strategic identity. After describing Coinstars humble beginnings, the case delves into the companys two primary business segments. The leadership team, competitive setting, customer qualities, marketing efforts, and supplier relationships for the Redbox and the Coinstar segments are presented. Financial records are also included, so that an assessment of the companys performance and capital structure can be conducted. Review Coinstars two primary businesses, comparing and contrasting the divisions along strategic and performance dimensions. Define success determinants for each of the companys two core business segments. What does an analysis of Coinstars financial results reveal about the companys operations and the performance of the organization? What factors will contribute to the companys decision to modify its capital structure? What role does diversification play in Coinstars business strategy? ANALYSIS Review Coinstars two primary businesses, comparing and contrasting the divisions along strategic and performance dimensions. Coinstar is currently committed to two core kiosk-type businesses: its Redbox DVD rental division and its coin-counting division. These two important business groups are compared along several strategic and performance dimensions below. REDBOX COINSTAR Business Origin Joint venture with McDonalds Brainchild of company founder Market Profile THE local video store Popular, fun, fast, easy Low profile and brand awareness Competitive Advantage Affordability, convenience, ... View Full Document

End of Preview

Sign up now to access the rest of the document