1. Do individual research on the driving competitive forces in the movie rental industry. Discuss the nature and strength of each of the Five Forces in the current environment. Conclude whether the force is favorable or unfavorable. Given your conclusion, draw up a list of critical success factors for Redbox, Netflix, and Movies On Demand.
2. Find the financial statements for the two most recent years for a publically traded company in the movie rental industry. Using these financial statements, calculate the following:
• Gross profit margin
• Operating profit margin
• Net profit margin
• ROI, ROA, ROE
• Debt-to-equity ratio
• Long-term debt to capital ratio
• Days of inventory
• Inventory turnover ratio
• Average collection period