Identify a Netflix strength and suggest how this strength may be leveraged in the marketplace to ensure a competitive advantage.…
1. Perform a STEEP analysis to understand the general environment facing Blockbuster. How will Blockbuster be affected by external factors?…
2. What do you believe are the most significant long-term threats to Netflix? How is Netflix trying to address these threats? What obstacles does the firm face in dealing with these threats?…
The movie studios and the video rental stores have combined stakes in the success of a movie. A successful movie ensures higher returns from exhibitions in theatres and increased rental revenues by…
The competitive forces in the movie rental industry are quite strong, as I will explain through the five forces model. There are a vast amount of substitutes for watching a movie. You can go to a play, sporting event, concert, out the lake/beach, go for a run, watch regular television, go shopping; I could go on and on. Also, torrenting or pirating movies is growing increasingly popular. Buyers have a strong presence in this industry mainly because they are picky about how much they will pay to rent or stream a movie. With the amount of substitutes and their pickiness, they make this industry more competitive than what it may seem. Suppliers can make this industry very difficult because there is so much red tape in the movie industry. There are copyrights and restrictions on everything. This gives the supplier a lot of leverage and for the most part, they know that they can demand a price of just about anything. I see the potential and threat of new entrants being moderate to strong. First off; many customers have their loyalties whether it be to Netflix, Redbox or a local hometown movie rental. Secondly; pricing, availability and quality are all key factors. Lastly you have to have a large sum of money upfront in order to get the ball rolling. As I mentioned prior, gaining rights from movie companies is not cheap. The rivalry among the competitors is rather intense as they are battling for the best prices, biggest variety, quickest accessibility for the customer, and quality movies (HD streaming, few scratches and number of blu-rays).…
In this memorandum, I will analyze the competitive environment that Blockbuster and Netflix faced, state the key income statement and balance sheet accounts for each firm and use ratios (including DuPont model) to draw comparisons between the two firms in 2008.…
Cited: "How Netflix Can Turn Things Around With A Few Tweaks - Seeking Alpha." Stock Market News & Financial Analysis. 24 Nov. 2011. Web. 28 Feb. 2012. .…
This report analyzes the strategic and financial performance of Netflix in the movie and video stores industry. Through an examination of the video retailing industry’s five forces model, driving forces, key success factors, financial statements, and SWOT analysis, we have been able to clearly articulate Netflix’s position in the competitive market and develop recommendations for the foreseeable future.…
What is Netflix’s strategy in the on-line movie rental market? What are Netflix’s sources of competitive advantage? Identify the competences key to the success of Netflix’s strategy and explain why. Netflix was a late entrant to the movie rental market and it was a first mover in the on – line movie rental market. Netflix’s strategy in the movie rental market is differentiation from traditional movie rental stores. Instead of attracting customers to a retail location, Netflix offered home delivery of DVDs through the mail. Why only DVDs? In 1998, most available movies were in VHS cassette format but Netflix concentrated on using only DVDs because its marketing strategy was to develop cross promotional programs with the manufacturers and sellers of DVD players, providing a source of content for the customers. Also, there was no competition in that niche market and DVDs were small and light which made them perfect for mail delivery.…
(A) Identify key issues, problems and opportunities facing Netflix. It may be helpful to consider the fact that the Netflix business model evolved through many strategy revisions. What caused them to make each shift? Were the shifts driven from the top or bottom? Is this easier for a small or large company?…
--What external factors should Netflix consider as they look to the longer-term future? Which are opportunities? Which are threats?…
5. What is Netflix’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Netflix is taking? What type of competitive advantage is Netflix trying to achieve?…
Netflix is an online subscription-based DVD rental service that promises to connect their customers to the movies and television shows they love through means of sending discs through the mail or streaming them directly via the internet. For only $7.99 per month, Netflix offers their customers unlimited access to their massive video library (>70,000 titles as of year-end 2006) and is able to deliver DVD's by mail to over 90% of their nearly 7 million subscribers in only a single business day.…
Netflix commands a huge geographical reach because of a single point access system – the internet website! Hence in today’s tech savvy world, the company can reach anyone with access to an internet connection. Secondly, Netflix offers an unmatched variety of movies since it overcomes the logistical constraints of a physical store and leverages its long tail advantage. More significantly, Netflix being the pioneer in the field of online movie rental has made good measure of being the early mover! It has developed a self-sustaining customer referral system called ‘Cinematch’ which records customer feedback and presents a customer with new movie suggestions. With over a million reviews being obtained each day, the database of feedbacks is linearly increasing which in effect keeps adding consistent value to the system. The chances of a customer obtaining a good quality feedback from a competitor with a minimal database are relatively low. This desists a customer from leaving Netflix in the first place! Moreover, Netflix ensures a consistently good customer service by maintaining an accurate and user friendly website which works as the face of the company! Netflix has achieved distinction in the market by running an efficient distribution network having low turnaround time and by delivering good quality physically inspected DVD’s at the doorstep of the customer!…
Perform a SWOT analysis for Netflix. What are its biggest threats? Which opportunities should it pursue?…