| 2012 | | Prof. Gervais
Victoria Skarbinski |

[Netflix] | A case analysis on the movie rental company Netflix. |

The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system.
Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent.
Netflix’s strategy so far has included offering various plans that incorporate unlimited streaming to a viewing device from the internet and a mail order system that sends physical DVD’s to the customer for an unlimited amount of time without any additional fees (so long as they still have a subscription with the company).
With consumers moving toward the digital era, which Netflix has embraced, Netflix has to focus on continuing to be an innovative leader in the movie rental industry. 1. Identify the key elements of Netflix’s strategy. What competitive advantages is Netflix trying to achieve?
Netflix strategy consists of at least six major elements, but its key elements consist of: * Providing subscribers with a comprehensive selection of DVD titles. * Giving subscribers a choice of watching streaming content or receiving quickly delivered DVD’s by mail. * Offering nine different variations of their service with subscription costs ranging from $4.99 to $47.99 with a free one month trial on any service.
One of the most basic features that any movie rental company needs to have is a comprehensive selection of movie titles. Netflix not only has a wide selection of movies that customers may rent from, but its warehouse and electronic ordering system allows it to offer any movie that it owns to 98% of subscribers in one business day. The warehouses that hold all of the movies are strategically placed in various locations to