The biggest potential threat could come from changing technology. For example, people can now purchase music via online music stores and download songs for around a dollar apiece.
We're probably not far away from similar technology for movies. Similarly, new digital video recorders can act like search engines, enabling consumers to find and record programs from their television for almost no cost and a lot of convenience.
- Perhaps Cuvia Network Video could become a distributor of movies, just like Apple Computer distributes music for its iPod devices.
- Cuvia needs to work out how to make an euro if technology enables direct movie downloads that bypass rental shops.
To fully penetrate its most immediate market - nearby residents and road runners - Cuvia Network Video should promote the fact that its stores are locally owned. This is a powerful differentiator and could form the basis of a marketing campaign.
- Cuvia could partner with recognisable local entities like supermarkets to offer joint promotions, such as discounts for frequent shoppers.
- Such partnerships would help member stores reduce costs through shared letterbox offers.
- Technology can be a differentiator too. Perhaps we could even explore using SMS technology for customers to book rentals and remote downloadws.
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