...companies like Netflix. Although the company filed for bankruptcy in 2010, it was purchased by the Dish Network family in 2011 and “is a leading global provider of in-home movie and game entertainment with over 2,500 stores throughout the Americas, Europe, Asia and Australia. The Company is one of the strongest and most recognizable entertainment brands in the world.” (“Company overview,” 2011). Prior to its 2011 Dish Network acquisition, James Keyes served as the CEO. “Dish Network reported that its Blockbuster unit had turned a $13.9 million profit for the first quarter on revenue of nearly $334 million” (Frankel, 2012). SWOT ANALYSIS Strengths * High brand familiarity. * Successful operations in global markets. * Loyal customer base. * Wide array of choices offered to customers. | Weaknesses * High operating costs. * More expensive than some competitors offering same services. * Rentals need to be returned within a specified time frame. | Opportunities * Increased collaborations with other companies. * Recent acquisition by Dish Network. * Acquisition of online movie download provider Movielink. | Threats * Intense competition from rival companies. * On-demand movie options offered by cable companies. * Slow economy leads consumers to spend less on entertainment. | ANALYSIS VIA...
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...Saturation in Kiosk Distribution Market 7 Competition 8 In-Store Rentals and Sales 9 Movie Gallery 9 Online Rentals 10 Netflix 10 Amazon 11 Apple 11 Online Viewing 11 SWOT Analysis 12 Strengths 12 Weaknesses 12 Opportunities 12 Threats 13 Summary 13 Executive Summary Movielink is the leading movie download service offering U.S customers an extensive selection of new and classic movies, foreign films, TV shows and other hard-to-find content. It is a web-based video on demand (VOD) and electronic sell-through (EST) service offering entertainment for rental or purchase. It was created in November 2002, as a joint venture ($100 million investment) of most of the big studios – Metro-Goldwyn-Mayer Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios, Warner Bros., and others on a non-exclusive basis. While it was only available to users in the United States, it was the first company in the world to offer legally downloadable movies from major studios. Today, Movielink is a wholly-owned subsidiary of Blockbuster Inc., purchased in August 2007, a leading global provider of in-home movie and game entertainment, with approximately 7,800 stores throughout the Americas, Europe, Asia, and Australia. Clearly a hedge move by Blockbuster, whom is locked in a death spiral with the cheaper and more convenient Netflix. Netflix also launched a free movie on demand product in early 2007. Until then,...
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...Business Model and Strategy in Renting Movies and TV Episodes 1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. Substitutes: There is a strong force of substitutes. Consumers can buy DVDs at retail stores, rent movies via vending machine like Redbox, rent online, watch movies via TV packages and premium movie channels, pay-per-view movie rental, watch movies on the internet via youtube and amazon.com, and consumers can obtain pirated DVD. Buyers: There is a strong force by the buyers, there are a lot of substitutes and companies have to fight with rivals for a competitive price and customer service. Pleasing the consumer is huge in this industry. Suppliers: There is a mediocre or low force by the supplier because there are a lot of different companies that offer the same goods. The DVD rental industry has a lot of substitutes with the same product just a different way of obtaining the movies. Potential for new entrants: The potential for new entrants is weaker because existing companies like Blockbuster are struggling to earn healthy profits. The convenience of movies online and through TV companies are over powering the in store business models that Blockbuster and Movie Gallery had. Rivalry: The force of Rivalry is very fierce because companies are coming out with new ways of obtaining movie rentals. The internet based companies are making it hard for other companies to rent their DVDs through storefront...
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...SUBJ: A Look at the Competition Within the Movie Rental Industry EXECUTIVE SUMMARY: Analysis: 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...
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...1. I don't believe movie rental market competition strength is very strong now. Many people watch TV movies, or watch it on the Internet, and many of the video is free in YouTube. Some place still open the movie rent store like movie gallery, but most of these companies are closed. For rival, there is not much rivalry in the movie rental industry. Only three big companies: Blockbuster, Netflix, and Red box. For substitutes, the only threat of substitutes that I knew is websites that provide movies online. For buyer, Buyers in these areas is very powerful. If buyers do not want to rent a movie, or just have no money to pay the subscription, they don't order it. For supplier, the power of supplier is strong, but consumers can go to the store...
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...million in startup cash. The company was formed with the idea that customers could utilize the company’s web site to rent DVDs and have them delivered to their home. The inspiration for the company came from Reed Hastings after he acquired $40 of overdue fees on an Apollo 13 movie rental from Blockbuster (A brief history of Netflix - CNN.com, n.d.). The business model for Netflix was created upon the methodology that customers will receive the movies of their choice in the mail while never incurring late fees. (Abraham, 2012 p. 1.8). Netflix added customer value and convenience by using processes already in place such as the US Postal Systems to capitalize on the delivery of their product. In this paper, I will outline a SWOT analysis of Netflix as well as prepare a strategic plan to grow the business over the next three years. Using SWOT analysis and strategic planning an organization performs organizational forecasting similar to advice given to a US hockey player once made concerning hockey, “skate where the puck is going to be, not where it has been.” (Schwartz, n.d.) Strategic planning is a systematic way of planning for the organizational future but upon the data based decisions from the SWOT analysis. The distinctive aspect between Netflix and their competition rests with the concept of Netflix bypassing the physical storefront retail route and dedication the business model around order fulfillment and distribution from a warehouse directly to the consumer. This entire...
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...Movies and TV Episodes (case 6 in text) 1. How strong are the competitive forces in the movie rental marketplace? Do complete five-force analysis to support your answer. The five force model of competition contains 5 sections of competitive forces which include: suppliers, buyers, potential new entrants, firms in the industry offering substitute products and rivalry among competing sellers. * Suppliers- my analysis shows that this is the strongest force in the industry. They are the one that set market prices and control the distribution of their product. The amount of movies produced all depends on them. If suppliers decide to vertically integrate forward, businesses like Netflix and blockbuster will definitely be wiped out of business. * Buyers- these are the people that accept the market prices. They have no say although the market works to satisfying their needs. They have limited choice in terms of finding other entertainment sources except visual entertainment and therefore accept whatever restrictions the market sets for them. This is not a strong force in this industry. * Potential new entrants- considering that competition is high in this industry and many businesses have set up their market status it is hard for new businesses to enter this market. Netflix is a dominant business in the market and has almost managed to wipe put blockbuster and movie gallery into bankruptcy. Therefore this force is also weak as potential new entrants will be highly...
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...Marketing of Discovery Point Contest page Discovery Point in couple sentences 2 SWOT analysis 2 PEST analysis 3 Answers from marketing questionnaire 4 Marketing objectives 10 Marketing programme 10 Promotion plan 11 Media Plan 11 Press release 12 Discovery Point in couple sentences Discovery Point is the home of RRS Discovery, the ship which was built to take Captain Scott on his first expedition to Antarctica. With audio-visual shows, computer-based multimedia and displays of the actual artefacts of the crew this award-winning visitor attraction transports back in time to Antarctica in 1901. There is opportunity to learn about the men of Discovery and their amazing scientific discoveries. This is the story of Discovery from her beginnings in Dundee and Captain Scott’s remarkable Antarctic expedition, through her long ocean-going career until her final journey home. SWOT analysis Strengths Strengths Profitable organization with a well-known name and product line. Nice, well-trained staff. Reputation for creatively developing new products. Excellent locations makes this attraction visible for everyone. Profitable organization with a well-known name and product line. Nice, well-trained staff. Reputation for creatively developing new products. Excellent locations makes this attraction visible for everyone. Opportunities Opportunities New development of Waterfront and being in the one of the fastest growing area in Scotland can attract...
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...Summary The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes. Assignment Questions 1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. Threat of New Competition: Netflix has almost zero threat of new competition. Any new competition would have to overcome large capital expenses to get started; these expenses include obtaining TV show and movie rights from the studios. Even if the starting expenses are obtained, the new company would have to be innovative and grab a hold of the market quickly to be successful. Threat of Substitute Products or Services: Netflix has a lot to worry about with this being the strongest of the five forces. Where Netflix offers DVD rental and Streaming service, it is in a market with other viewing formats such as Video on Demand and Pay-Per-View. Many moviegoers have membership to one or more of these services and switch back and forth between them to suit their viewing needs. Bargaining Power of Customers (Buyer Power): Users of Netfix have a ton of buyer power, they can easily compare Netflix to other DVD and streaming services and determine what seems reasonable for them. This causes Netflix to keep...
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...Case Study Week 6 FI590: Real Estate Finance Commercial Real Estate SWOT Analysis Location: Los Angeles, CA | 137 Virgil Ave, 90004 ($3.45M) | Strength: | * Very sophisticated, modern and upscale in appearance * Centrally located near shops, major streets and metro station * Gated, 30 space parking lot | | | Weakness: | * Glass façade will lead to higher costs in operation of AC due to poor heat preservation * Atriums provide undesirable heat gain, excessive contrast, and glare, and inconsistent light levels over the course of the day | | | Opportunity: | * Option to purchase a billboard leased until 2016 for an additional $12,000 * Ability to attract upscale clientele with building design * Can network and connect with local businesses | | | Threat: | * Other potential buyers * Poor economy | | | | 2501 S. Hill St, 90007 ($2.7M) | Strength: | * Located near the primary business corridor and the fashion district * Access to freeway | | | Weakness: | * Unattractive structure * Poorly manicured land * Blocked by palm trees * Built in 1955 (older buildings require more maintenance) * Poor location * Small 14 space parking lot | | | Opportunity: | * Potential to influence a lifestyle change in the area | | | Threat: | * Renovations may cost more than building purchase * Economic downturn * Competition | | | | 1646 S. Spring St. 90012 ($2.5M) | Strength:...
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...invention. It captures the opportunity for change, growth, and market leadership that allows leaps within the industry in multiple ways. Netflix’s Innovative Overview The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups. The success of Netflix was simply listening to consumer’s feedback regarding the services and products in the DVDs rental industry. As a result, Netflix absorbed the lucrative cost in unattractive late fees. Instead, Netflix offers no late fees, no membership required, the ability to cancel services anytime, 24-hour online and telephone support, substantial movie reviews from customer (peer), and unlimited streaming and DVD rental services. Most important, Netflix major attraction was quality service without the long lines like most brick and motors. Instead, DVD rentals arrive directly to your front door.This...
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...Since founded in 1999, Netflix has grown to become the world’s largest online movie rental service. In the beginning of 2007, Netflix surpassed 6.3 million subscribers. With a catalog that includes more than 100,000 titles, Netflix is leading the movie rental market. Netflix’s subscription-based business model was a disruptive innovation in the movie rental business. By using the internet, Netflix focused on providing convenient and affordable prices for an entertainment industry that was already highly popular. Based on a product that consumers already loved, Netflix’s business model was profitable because it improved the consumer’s rental experience. The company aimed to become the best cost provider. As part of its competitive advantages, Netflix has an intuitive website (easy to use), personalized movie recommendations, and excellent customer service. Netflix has been rated No. 1 in online retail customer satisfaction by Neilsen Online for the past 3 years and for nine consecutive periods by Forsee/FGI Research (Netflix, 2009). Netflix’s strategy for success has included providing a comprehensive selection of movies; an easy way to choose movies, fast delivery, a no late fees policy and a convenient drop it in the mail return system. These strategies ensured a competitive advantage to Netflix and threatened to make the traditional video store obsolete. A combination of its business model and strategic approach carry out the mission of the company. Diagnosis of...
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...Netflix Netflix was founded in 1997 in Scotts Valley, California, USA by two entrepreneurs named Reed Hastings and Marc Randolph. In its early days, Netflix offered unlimited movie rentals to its subscribers without due dates for a flat monthly fee with no per title rental, shipping or handling fees or late charge fees. In 2007, the company introduced new business model based on video on demand via the Internet, which was considered by some to be a departure from its original business model of movie rentals. With video streaming, online DVD and Blue-ray Disc rental tripod and with a global streaming subscribers of over 50 million, Netflix reported a revenue of US$4.37 billion US$112 million of which being net income and a total asset of US$5.4 billion in 2013. The company estimates its total equity to be US$1.33 billion and it has over 2000 full-time employees (www.netflix.com). Netflix’s vision as expressed by one the co-founder focuses on global distribution, licensing entertainment contents across the world, market accessibility for film makers, and finding global audience for content creators. (10K Item 1). It’s mission emphasizes growing global streaming subscription business, continuous customer experience improvement, enhancing user interface while at the same time remaining profitable. Mission. Netflix core values revolve around judgement, productivity, creativity, intelligence, honesty, communication, selflessness, reliability and passion. Tepper (2014)...
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...Abstract: This course work will concentrate on marketing analysis of the world’s leading circus company Cirque du Soleil. Based on the data given it will conduct a PEST, Porter’s 5-Forces, SWOT analysis and discuss the results, together with results paper will concentrate on marketing and positioning strategies and Ansoff’s Matrix, and also recommend strategy measures for achieving sustainable economic development outcomes. It was found that, first of all, Cirque du Soleil is making a profit while most of its competitors are fail to break even. Second, with its innovative and creative productions, the Cirque stays in a distinct position that none of its competitors can compete. Third, the Cirque’s shows ease to accept by the world and became more flexible due to the sufficient diversity in performers’ nationalities and with experience in multi-field. Table of Contents 1. Introduction………………………………………………………..5 2. PEST and Porter’s 5-forces analysis................................................5 3. SWOT Analysis................................................................................11 4. Marketing and positioning strategies...............................................14 5. Ansoff’s Matrix…………………………………………..………..16 6. Conclusion........................................................................................18 Bibliography.......................................................................
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...Netflix Domestic Strategy Prepared for: Netflix Senior Management Reed Hastings, Co-Founder and CEO Kelly Bennett, Chief Marketing Officer Jonathan Friedland, Chief Communications Officer Bill Holmes, Chief Business Development Officer Neil Hunt, Chief Product Officer David Hyman, General Counsel Patty McCord, Chief Talent Officer Ted Sarandos, Chief Content Officer David Wells, Chief Financial Officer August 4, 2012 Through this report, our consulting team has taken the opportunity to analyze and provide recommendations for future domestic business strategy of Netflix. As expressed in the company’s founder’s conference last October, we would like to help you build upon your stated vision for the future including: • Becoming the best global entertainment distribution service • Licensing entertainment content around the world • Creating markets that are accessible to film makers • Helping content creators around the world to find a global audience We would also like to follow the nine values you use to guide your company: • Judgment • Productivity • Creativity • Intelligence • Honesty • Communication • Selflessness • Reliability • Passion In this report, we will address the following issues to provide a foundation for overcoming Netflix’s domestic challenges: I. Competitive Dynamics A. Key Competitors B. Competitive Response II. Strategic Management/Competitive Issues A. Key Strategic Issues B. Strategic...
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