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Netflix Analysis

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Netflix Analysis
Dayani Marrero
DeVry University
07/25/2012

Netflix Analysis
Netflix Inc. is the world's leading rent-by-mail company. The firm has more than 1.1 million subscribers who typically pay a monthly fee of $19.95 for unlimited rentals, provided they have no more than 3 discs out at one time. The company offers more than 15,000 titles and maintains an inventory of more than 5 million discs. To speed delivery, Netflix has opened more than 20 regional shipping centers around the United States, and most DVDs are received by customers a day or two after ordering them on the company's Web site. More than a third of the publicly traded company is owned by Jay Hoag's Technology Crossover Ventures. Some of the organizational strengths are low prices and fast delivery. With the low prices they have they attract more customers into signing up. The price is convenient for almost everyone because it is affordable. Netflix is the best way to watch movies for a low price each month you get to watch unlimited movies and shows. There are competitors like Hulu or Red box and now Blockbuster that offer movie streaming online and also by mail. Blockbuster is Netflix’s biggest competitor at this time but the only thing that Netflix has to win over customers is their low price. Blockbuster charges $14 a month just for online streaming and Netflix charges $14 a month with online streaming and DVD’s by mail. Two options for the same price when the other has one option. Netflix also has fast delivery, their service is over 90% of the DVD’s people order are received within one day. The organizations weaknesses are price increases and not many rental options. The price increases that Netflix has are about $11 more than the regular streaming to get Blue-ray discs delivered. Although Netflix is very popular and on demand by the consumer, they are unable to offer the new...

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