...Kelsey Davis GBA 490 Professor Shelton February 27, 2014 Netflix Case Questions 2. What forces are driving change in the movie rental industry? Are the combined impacts of these driving forces likely to be favorable or unfavorable in term of their effects on competitive intensity and future industry profitability? The movie rental industry has many forces affecting it. A force that is driving change is always the possibility of potential new entrants into this industry. The movie rental market is growing at a fast pace with few obstacles blocking the competitors from entering the movie rental industry. This could easily dilute the market and pose a potential problem in the future. Another force that is driving the industry is the rivalry among competitors. The number of competitors in the industry is quickly growing. With products offered having little to no differences and the consumer’s cost of switching services very low this makes it a hard industry to compete for customers. Rivals will have to be creative and come up with diverse strategies for providing their services in order to survive in this industry. 3. What does your strategic group map of this industry look like? How attractively is Netflix positioned on the map? Why? When observing the strategic group map the movie rental industry, it is obvious that Netflix is in a great place on the strategic group map. Despite the obstacles Netflix has had to overcome it still holds a large part of the market share...
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...One hotly contested and highly competitive industry is the movie rental business. You can rent videos from local video rental stores, you can order pay-per-view from the comfort of your own home, and you can rent videos from the Web at such sites as Netflix. Using Porter's Five Forces Model, evaluate the relative attractiveness of entering the movie rental business. Is buyer power low or high? Buyer power in movie rental business can be considered very high. As mentioned in the question, customers have wide range of choices to rent movies, from local stores to pay-per-view, to Red Box at most of national grocery chains, to online streaming and renting such as Netflix, Hulu, etc… With the technology for Internet TV in many homes today, customers can sit back on their couch and enjoy the convenience of watching any movies on demand at their fingertips, provided by Netflix, Hulu, Amazon or iTunes. Is supplier power low or high? Supplier power is low in movie rental business. Brick-and-mortal movie renting stores such as Blockbuster, Hastings, or local stores are losing their grounds in this battle for customers because they may not have the tremendous amount of copyrights to movies or the capacity of their stores to keep those DVDs. Online, there are more and more competitors joining the business, such as Netflix, Hulu Plus, Amazon Instant Video, and Apple iTunes. Each of these online competitors has obtained rights to a huge selection of movies, and the advantage of...
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...Table of Contents Introduction……………………………………………………………………........1 Industry Overview………………………………………………………………2-8 Client Profile & Competitor Analysis……………………………………9-17 Comparative Analysis……………………………………………………….18-19 Consumer Analysis………………………………………………………….20-23 Consumer Insights………………………………………………………….24-29 Survey…………………………………………………………………………….30-31 Results……………………………………………………………………………32-41 Recommendations…………………………………………………………..42-45 Appendix I……………………………………………………………………..46-48 Appendix II………………………………………………………………….…49-55 References………………………………………………………………………56-57 Will Haven, Lucy Ross, Jessica Stephens, Lauren West & Bonnie Willard Redbox is leading the way in the premier industry of DVD rental kiosks. With Coinstar as its established parent company, redbox is currently surpassing its competitors with its number of self-service kiosks. Redbox’s growing popularity is facilitated by its physical distribution, which places the kiosk in high traffic locations such as WalMart, Kroger, McDonalds and Walgreens. Due to redbox’s standing as the progressive option for DVD rental, its decision to target the 18-24 year old demographic was evident. This demographic embodies the idea of innovation, experimentation, and dependency on technology, all of which are imperative to transform an introductory product into a nationwide brand. The following report provides secondary and primary research in order to construct an accurate glimpse of redbox and its emergent status within the 18-24 year...
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...Entrepreneurial Leadership In business, one should be goal oriented. Entrepreneurs take risks in business, trying to achieve their goal without knowing what the outcome may be. There are many ways to become an excellent entrepreneurial leader and there are resources out there to make businesses successful. While achieving profit, it is also important to help the greater cause, such as the community. Blake Mycoskie is a true definition of an entrepreneur. He has succeeded in all the business ventures he pursued and has become more successful with every business. Blake is not afraid to take risks and has tried to make sure that he puts his best foot forth to make sure his businesses become successful. His first project was opening a laundry service in college for all the college students and it very well which led to it expanding to other colleges. Blake then sold the laundry company and then started a music company that aimed at country music stars, with the success of that he sold that company also. Blake has a great business mind and he has great ideas to generate profit that’s why his businesses were successful. Mycoskie raised 2 million dollars with a reality show which they got the money from celebrities but it was later bought by Rupert Murdoch that too was a success. After those business ventures, another one came about and this time he partnered with a traffic school to help promote Driver’s Education Direct and he also created a marketing company to promote Driver’s...
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...Blockbuster video Case study By Ange li n a I., An to n G., N ah ia n U. понедельник, 5 декабря 11 г. Introduction ability to analyze the company’s performance over the years is a duty of every manager. Today we are going to try to analyze and look deeper into the case of Blockbuster and it's evolution over the years .In order to do this, we are going to answer several questions, which will help you to understand the problems, that Blockbuster faced and solutions The it's implemented. понедельник, 5 декабря 11 г. понедельник, 5 декабря 11 г. Business problems and decisions Changing rental patterns. households acquired As more cable TV, customers no longer wanted to rent older videos. With the new approach, customers only cared about the new releases. But, at $65 a tape, those costs were high—and after about a month, people moved on to rent the next release, so the store no longer received money to cover the original purchase price. In 1997, CEO John Antioco found a solution. He negotiated a deal with the leading Hollywood studios. Blockbuster would purchase tapes for $6 upfront, then give the studios 40 percent of the rental revenue. Competitors could not match the cost savings. About 2,500 of them (10 percent of the U.S. market) went out of business. понедельник, 5 декабря 11 г. Business problems and decisions But, entertainment technology rolled on. By 2001, the world was quickly switching to DVDs late 2001, Blockbuster again had...
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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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...Environmental Performance Report The Body Shop Prepared by: Sue McSkimming Background 4 4 5 Environmental Policy 6 7 Reference List 11 Background The Body Shop is a well-established multinational company with over 2,500 stores in 60 markets worldwide (The Body Shop, 2011). Dame Anita Roddick opened the very first the Body Shop store in 1976 in Brighton, on the south coast of England. The Body Shop specialise in the production and retailing of skin care ranges, with an emphasis placed on developing natural and sustainable products. They carry a wide range of over 1,200 products for the body, face, hair and home, including body butters, make up, full skin care ranges as well as specialised men and baby ranges. As well as selling their products at brick and mortar retail stores they also have a direct-selling channel called the 'Body Shop at Home' which involves consultants selling products at organised parties in people's homes. This operates in two countries, the UK and Australia. Customers can also buy online in the UK, the USA, Canada, Australia, Korea and Japan. The Body Shop's mission statement includes the following: -Dedicate our business to the pursuit of social and environmental change. -Creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders. -Courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising...
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...University of Winchester | Market Research | Researching Fashion | | Samantha Wroe | 1207555 | Primary Research Question How does Topshop, the world’s most influential high street fashion brand research and use different researching methods to market their brand and products? Introduction Anita Roddick of The Body Shop, said that ‘market research is like looking in the rear view mirror of a speeding car’. Market research is one of the most important business strategy’s to any fashion brand or retailor. It is the initial task that a fashion brand would take out ensuring it is a successful process which will allow their brand to be marketed effectively. Market research is collective information that has been gathered concerning customers and the current market. Market research is a crucial element to gain an advantage over competitors allowing the brand to become the most successful, positive and fast changing within the fashion industry. Market Research is put in place to recognize, identify and analyze the market size, the market need and the current completion. DEFINITON OF MARKET RESEARCH. Aims This essay you will read a brief introduction of the fashion brand Topshop. The Author will then describe Topshops attitudes and principals towards Market Research. The Author will discuss how Topshop take out and handle their research and how this then makes the market of the brand successful. You will learn what Topshop look for while researching and their...
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...Eva’s Print Shop: tripled bottom line operates as a social business and a corporate structure divided in terms of it’s two businesses some horizontal connection between the teams but not a clear functional structure hybrid between functional and divisional innovative features: social business (mohamed yunous) – integrating the production (commercial) and the teaching (social) business side – bringing in money to sustain the organization social side - 2002 – they used to be funded by federal grants BUT caveat w. government funding required the trainees to be paid… issue: these are homeless youth and they are being taken off the streets – giving them homes and are taught basic survival skills on how to live, and take care of themselves any kind of not for profit formula has strict guidelines which is why they switched because it was counter intuitive to the social goal. Case: Who: (names and position): Andrew Macdonald and the Advisory Board (primary stakeholders) Eva’s initiatives What: (Key Issues): Whether or not to expand and if so how Why: (Root Causes): Funding Will the business side fund the social side? Need to help more at risk youth is pressing – growing problem When (Timeline): No, just as it works for the company Changing the funding has put some constraints on the economic business, BEP Analysis: (application of course concepts, models, theories): Performance: changing in funding formula away from government funding was made after...
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...Movie Rental Industry: Blockbuster Case David Cook founded Blockbuster video in 1985, opening the first store in Dallas Texas and has grown to become the world's number one video chain. Mr. Cook took the idea of video rental and improved it by creating the video superstore concept. Many family-owned video rental stores could not compete against Blockbuster' stores. Blockbuster stores were highly visible stand-alone structures that appealed to customers. Blockbuster His stores had a wider selection of videos and offered longer hours of operation. He focused on creating a family image for his stores by including a children's section and excluding adult movies. He also made it possible for busy people and people with children the opportunity to view movies for a longer period by starting the 3 day rental period. In 1986, Mr. Cook sold 33% of Blockbuster to h, m & Flynn and in 1987; he decided to leave the company making Mr. Huizenga CEO (Smiley, 2010). Mr. Huizenga had experience growing small companies but no experience in retail, so he hired the best managers who were capable of developing a retail chain. Under Mr. Huizenga's leadership Blockbuster experienced major growth. By 1992, Blockbuster had over 3,000 stores (1,000 franchise and 2,000 company owned). Blockbuster had established 3 operating divisions to manage functional activities. These three divisions cut cost for the company by eliminating the outsourcing of these jobs. Years ago, almost everyone who rented a video...
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...The Body Shop International PLC, known as The Body Shop, has 1,200 products in 2,500 stores in 61[2] countries. The company, which has its headquarters in Littlehampton, West Sussex, England, was founded in 1976 by Anita Roddick and is now part of the L'Oréal corporate group. History In 1970, Anita Roddick (then Anita Perilli) visited "The Body Shop" housed in a car repair garage in Berkeley, California selling naturally-scented soaps and lotions called The Body Shop. The shop run by Peggy Short and Jane Saunders used natural ingredients, and helped to employ and train immigrant women. Six years later, in 1976, Roddick opened a similar shop in the UK, using the same business name, color scheme, and cosmetic lines. In 1987, Roddick offered Short and Saunders 3.5 Mio USD to change their shops name to Body Time. Until 1992 the rename was completed. [3][4][5]From its first launch in the UK in 1976, The Body Shop experienced rapid growth, expanding at a rate of 50 percent annually. The Body Shop stock was floated on London's Unlisted Securities Market in April 1984, opening at 95p. After it obtained a full listing on the London Stock Exchange, the stock was given the nickname "The shares that defy gravity," as its price increased by more than 500%. But the opening of Roddick's first modest shop received early attention when the Brighton newspaper, The Evening Argus, carried an article about an undertaker with a nearby store who complained about the use of the name "The Body...
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...| 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...
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...The Body Shop The Body Shop, one of the 21st Century's most iconic brands, started its first store in 1976. Today, it welcomes over 275 million shoppers to its stores every year, and has over 2,700 stores in 63 countries worldwide. Since its inception the essence of The Body Shop has been selling products made from natural ingredients. The customers found these products unique and were attracted towards the concept. But a major push for the brand came when the company got actively involved in social activism. In 1986 the company launched a campaign together with Greenpeace to save the whale. Similarly, it launched many other promotional campaigns with a social cause at the core. These campaigns gathered a lot of media and public interest. The company also protests firmly against the use of animals for testing cosmetics. Its web site explains that it does not sell or use either finished products or ingredients that were tested on animals after 31 December 1990. Today, The Body Shop is known for its commitment to values: Against Animal Testing, Community Fair Trade, Protect the Planet, Defend Human Rights and Activate Self Esteem. But the organization wants to be just as well known for its beauty credentials and product innovation. That is why it has started a new beauty movement called ‘Beauty with Heart’. The campaign talks about not just looking good, but feeling good and doing good, too. The best way to...
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...Do you rent movies? Yes No How many movies do you watch in the average week? 1 2 3 4 5 6 or more On average how many movies do you rent in a week? 1 2 3 4 5 6 or more Which services do you use to rent movies through (check all that apply)? Movie Rental store Netflix Redbox iTunes Cable Service Other Which service do you use the most to rent movies through? Movie Rental store Netflix Redbox iTunes Cable Service Other A year ago which service would you have used the most to rent movies from? Movie Rental store Netflix Redbox iTunes Cable Service Other Have your habits changed in the last year when renting a movie? Yes No On average how many movies do you buy in a month? 1 or less 2-4 4-6 6 or more What is your movie knowledge? Very knowledgeable Knowledgeable Somewhat Knowledgeable No knowledge Please rank the genre that you like the best from 1 to 9, 1 being your most favorite and 9 your least favorite. - Action/Adventure __________ - Romance __________ - Comedy __________ - Drama __________ - Horror __________ - Musical __________ - Children/Family __________ - Documentary __________ - Sci-Fi/Fantasy __________ How much do you spend on movie rentals a month? 0-5 dollars 5-10 10-15 15-20 20 or more When renting movies do other people influence what you rent? Very Often Often Sometimes Not Often Never How has the internet affected the number of...
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...Paul Noonan Micky Thakkar Carlton Graham Dave Hasty Christina Carroll Busgr 567, Marketing Strategy Dr. Joyce Hunter May 25, 2010 Case Study: Blockbuster, Inc. [pic] Table of Contents: Dave Hasty Mission Statement, History of Blockbuster, pg. 3-5 Carlton Graham/Paul Noonan Marketing Strategy, 5-6 Marketing Mix, 6 Target Markets, 6-7 Micky Thakkar Marketing Objectives and Goals 7-10 Paul Noonan/Micky Thakkar Advertising and Promotion Strategies 10-13 Environmental Analysis and Porter Analysis 13-15 Christina Carroll SWOTs 15-19 Netflix SWOT Redbox SWOT Blockbuster SWOT Competitive Advantage Strategic Focus Paul Noonan Financials 19-20 Future Trends 20 Recommendations 20-22 All Questions 22-25 Bibliography 26 Compiled by Paul Noonan The History of Blockbuster Inc. Blockbuster’s mission statement is “To be the global leader in rentable home entertainment by providing outstanding service, selection, convenience and value.” Blockbuster is an American based chain of retail stores renting DVD, Blu Ray, and video games. They have over 9,000 locations in the US and 25 other countries worldwide. It is headquartered in the Renaissance Tower located in Dallas, Texas. The first store was opened in Dallas, Texas 1985 by David Cook. Cook had started a company called Cook Data Services Inc. in 1982 selling software to Texas’s oil and gas industries.[i] When the industry went flat Cook was searching for another source...
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