Netflix Essay

380 Words2 Pages
1. Value Proposition Target Segments: Wireless-Cable Internet users / DVD player users / Computer users / XBOX-WII-PS3 users Focal Customer Benefits: Netflix- Unlimited, No Late Fees, Successful Software, Fast Shipping, Wide DVD Range Red Box- Limited, Not Online Blockbuster- Longer Delivery Time, Bad Software I-Tunes- Expensive DVD Stores- Hard to Access, Expensive From a customer’s perspective Netflix is unique with: * No delivery charge * Large database * Unlimited access * DVD to home service * Successful online software * Eliminating late fees * Business process 2. Supply chain Netflix has a supply chain management system in order to chase its inventory and information. Netflix can diminish its number of inventory that it records warehouses and distributes their DVDs rapidly. Netflix carries out this system by informing the workers where to ship its inventories. After the inventory arrives at the warehouse, it is sent to its next destination. Distribution Centers(DCs) have an important role on Netflix’s business process. With more than 30 DCs around U.S. Netflix delivers DVDs faster than competitors. 3. Revenue Model of Netflix: There is confusion between business model and revenue model. First your business needs to have a revenue model. It won’t differ if your company has business model or not. Your business model should explain what is your product, how much are you going to charge, who are you going to charge, and why are they going to buy your product? For Netflix Product: Movie and television show rental service via internet streaming and US mail. How to charge: Many options for consumers. For example free trial for one month and then $7.99 per month for streaming instantly over the internet. Who to charge: The one who has internet access in their homes and having required technological items. For example the

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