Premium Essay


In: Business and Management

Submitted By iic8418
Words 3142
Pages 13
Case 6: Netflix A. Summary
“Since launching the company’s online movie rental service in 1999, Reed Hasting, founder and CEO of Netflix, had diligently strive to improve on the company’s service offering and better enable the company to outcompete its competitors. Hasting’s goals for Netflix is to build the world’s best Internet movie service to build the world’s best Internet movie service and to deliver a growing subscriber base and earning per share every year.
In May 2010, Netflix’s strategy was producing impressive strategic and financial results. During the past five years, Netflix had emerged as the world’s largest subscription service for streaming movies and TV episodes over the Internet and sending DVDs by mail.”

B. Analysis I. Strategic Analysis 1. Competitive forces in the movie rental industry a. Rivalry among companies: strong
Netflix have to deal with rivalry from Blockbuster, Redbox, and video-on-demand providers. The battle includes many competitors and each of them is trying their best to attract the customer.
Customer has many options and their choices are based on some factors: * Price: rent each DVD or buy subscription plan/ what kind of plans * Convenience: stream from your device or got DVDs then return * Variety of rental library: how big and how vary the company library is * Availability: customer who choose to stream movie over internet or VOD never face the situation when there are no available DVD to rent like customer who choose to rent real DVD from store. * Ease of use: streaming customer can choose to see movie in more than one device. It is also easy for them to browse the company library. * Late Fees: Some providers require late fee for DVD. Some providers (like iTune) limited the time customer can keep the movie they download. * Reputation of the provider.
All competitors...

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