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The number of distribution centers and the smoothness of operation could be the most fundamental indicator for the scale of service territory a company can cover. Building alliances with complement providers and suppliers, such as DVD player manufacturers or DVD publishers, could also be a smart choice to broaden the market share. Thus, companies which now work well with large channels of real stores or virtual portals could be potential competitors to companies of video rental industry.
In addition, customers are sensitive to the value the companies offer. If there is no further service provided, customer demands are tied only to prices and what companies can only do is price war, which could dramatically harm companies' revenue...
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