Video Concepts, Inc.

There are many issues, challenges and problems that confront Chad Rowan, the owner of Video Concepts, Inc. The first problem is raising monthly revenues from their current plateau of $40,000. The second problem is figuring out a way to compete with Blockbuster Video, Inc. for market share in order to secure market stability. The third problem is figuring out how to purchase new release videos for less money than the current $70 average they cost Video Concepts, Inc. The fourth problem challenging Video Concepts, Inc. is finding a way to maximize the resale value of its previously viewed new release videos. A fifth challenge is figuring out how to pay down the debt the company owes in the face of stalled cash flow. A six challenge facing Video Concepts, Inc. is a maturing industry and the enormous buying and advertising power of its chief rival, Blockbuster Video, Inc.

The following alternatives are designed to help Video Concepts, Inc. meet some of the challenges outlined above. These alternatives are:

Raise video rental prices from the current $1.99 by .50 cents to $2.49 each.

Increase advertising and promotion strategies which focus on Video Concepts Inc.'s lower rental price, free home delivery, and option to reserve videos in advance.

Design and create a Web site whose address is featured in all in-store and local advertising and promotion.

These strategies are designed to resolve some of th

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