Everyone knows the company’s name and the association is generally positive. •Platform- Of all the major streaming services, Netflix has the best delivery system which helps keeps customers loyal. Amazon’s search engine for Prime Video (videos available for free streaming which includes free two day shipping on all Amazon orders) returns results which include videos you can purchase, Hulu Plus is jumpy and the experience is weighed down by in-show advertisements, and streaming on Time Warner’s (NYSE: TWX) HBOGo is jumpy and little things like the title of the episode in your queue is unavailable. •Content- While Netflix recently lost Viacom content, it will soon be replaced with content from Disney which will include George Lucas’s beloved Star Wars franchise. Also, Netflix has sponsored an exclusive window on some pretty good shows, including its big hit, "House of Cards."
Netflix in a Competitive Market Laura Seymour Excelsior College NETFLIX Netflix, even with much competition, since established in 1997 had been able to stay innovative and transition themselves to stay profitable. The company consistently keeps a good brand image for their customers and knowing what their customer wants is very important to them and has helped them benefit financially. They are able to be competitive by using a niche strategy (pg.36) and offer the largest collection of titles affordably. Netflix has implemented challenges in their field of experts be using forecasting (pg.9) to be able to monitor the company’s sales online to understand what their customer’s preferences are. This concept called cloud computing (pg.13) enables them stabilize their inventory and meet demand.
Competition in the Movie Rental Industry: Netflix and Redbox EXECUTIVE SUMMARY This analysis will cover the movie rental industry and providing recommendations to Redbox and Netflix. Movie rental industry is rapidly changing much of the once dominant force in movie rental Blockbuster is slowly shifting to the now increasing power house Netflix for most consumers’ movie rental choice. The recommendations for Netflix in order to maintain its dominance in the field is to maintain its low cost in subscription, increase its video library, collaborate with Television providers to incorporate Netflix directly into the Televisions. Recommendations for Redbox is to maintain its kiosk location, but also move into internet streaming where they provide newer movies for its same one dollar fee. ANALYSIS Netflix, Redbox and Competitors Netflix is the world’s largest subscriptions service for streaming of online movies and TV episodes as well as sending DVD’s through mail.
Being the first mover, Netflix was able to establish a strong market share early and has thus been able to easily develop strong customer loyalty. In addition to this competitive edge, there are strong barriers to entry into this particular market. Building a base of movies and keeping it constantly updated with the latest films is costly and makes it difficult for new competitors to enter the industry. Another costly barrier to entry is the price of setting up channels of distribution. With 100 distribution centers and the ability to deliver DVDs to 97% of customers within a one-day period shows that Netflix already has a well-established distribution systems that give it a major
Case Analysis 3: Blockbuster Identification of the strategic issues and problems Beginning with minimal competition, Blockbuster is a company recognized in its industry as one of the first worldwide powerhouses in media and game rentals. As technology and competition continuously grows, Blockbuster increased their strategic focus to preserve their brand’s global power through strategic alliances. Their multiple channels in media entertainment keep them at a competitive advantage but the concern remains that their dependency on assets and relationships isn’t what will keep the company ahead in the future. Blockbuster’s reliance on this alone, as a strategy to continuously compete with evolving times, will be their biggest weakness. Opportunities are still available for Blockbuster to reevaluate and implements new strategies.
In 2010, Netflix passed a significant milestone with the majority of our subscribers viewing more of their TV shows and movies through streaming than by DVD. Going forward, they expect that will be primarily a global streaming business, with the added feature of DVDs-by-mail in the U.S. Netflix believe delivery of entertainment video over the Internet will be a very large global market opportunity, and that our focus on one segment of that market—consumer-paid, commercial-free streaming subscription of TV shows and movies—will enable the company to continue to grow rapidly and profitably. How Netflix made its place in the Home Video Rental Environment and its struggle to remain on top. The Idea The year was 1997, the 1997th year of the Common Era; the 997 the year of the second millennium, and the 97 year of the twentieth century. Saddam Hussein was threatening
Opportunities: 1) The rapid adoption rate of DVD players among U.S. households 2) New relationship with studios, Netflix transition to revenue-sharing agreements with the major studios. 3) VOD/Online, customers were able to watch their selections immediately. 4) Relationship with USPS, Being the USPS fastest-growing first class customer allowed Netflix to
1. Threat of New Entrants: Because firms like Blockbuster and Redbox are so well known and have a reputable name, I think the threat of new entrants is fairly low. Not to mention, the increasing trend toward subscriptions, internet streaming, and video on demand will most definitely prevent more movie rental firms from entering the marketplace. Threat of Substitute Products: The threat of substitute products is relatively high in the movie rental marketplace as a whole. With firms like Netflix, there is an increasing amount of consumers who pay for a subscription and can stream movies directly to their TV, computer, tablet, or even cell phone.
Corporate and Business Strategy: Team Case 2 Date: 3/8/2009 Re: Competitor Analysis: Wal-Mart Company and Dell After a thorough analysis focusing on key strategies of Wal-Mart and Dell, which are outlined in the following pages, our final conclusion is that many of their competitive advantages cannot be easily replicated. However, several of their successful strategies outlined below could be implemented to help make XYZ companies more profitable. Matching Dell Between 1994 and 1998, Dell Computer Corporation grew twice as fast as major competitors in the personal computer market. Dell achieved this feat by successfully implementing the “Direct Model,” a strategy relying on the direct delivery of customized PC’s at a relatively low price. Competitors quickly recognized Dell’s success; however, none were able to successfully restructure their operations to reach the profit levels that Dell achieved.
Today’s market landscape looks much differently than it did when Blockbuster Video was at its peak. Many more competitors fight for the consumer’s dollar; however, there are still a few dominant companies that stand out among them. These include Netflix, Redbox, Apple, and Amazon. 2. Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a “market economy.” Blockbuster became an almost instant hit with its brick and mortar stores.