Netflix's initial pricing model was similar to traditional video stores, charging $4 per movie rented plus a $2 shipping and handling. Issue: What cost and price structure should Netflix adapt to meet customer's needs, and improve customer's satisfaction? Analyzing the Issue SWOT Analysis Strengths: 1) Movies Recommendation system to any user, creating a web portal rather than just a subscription service. 2) Offering unlimited rentals. 3) The shift to no-late fee subscription model, no due dates.
Ten years later in 2007, they introduced their online streaming capabilities so that members could watch television shows and movies on their computers. Netflix has since launched in over 40 countries around the world, exceeded 50 million members, created original series, and is now available on basically any internet connected device. They are currently the world’s leading internet subscription service for movies and television shows. Netflix
Consumers have a variety of choices when deciding which source to rent movies from. As stated in this problem, buyers can choose to rent videos from a local video rental store, by ordering from their pay-per-view subscription, and renting videos online. Some movie rental companies hold particular competitive advantages. HBO subscribers have the option to watch any movie that is available on that network at any time. Netflix allows their customers to order movies online for a small fee of $7.99 per month.
By 1994 there were 66 Primark and Penneys stores across the UK and Ireland. During 2006 Primark expanded into Spain and to date has 35 stores trading in the country. Primark now operate 257 stores in the UK, Ireland, Spain, The Netherlands, Portugal, Germany, Belgium and Austria and employ 70,000 across the world. Primark offer both women’s, men’s, children’s and babies clothes and also home ware products. (Primark 2013) (The Times 100 2013) Primark compete with their competitors by using a cost leadership strategy, the sell bug volumes of low cost goods to a broad target market and the goods they are selling have mass appeal.
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. Redbox has over 22,000 kiosk locations within the continental United States and United Kingdom with DVD rentals and the cost of one dollar a day to its customers. New Entrants Ease of entrance is a main factor in the strength of both Redbox and Netflix, in the number of competitors, now with mostly online video streaming you only need computers, software and servers and distribution rights to enter the market. With more companies and competition Netflix and Redbox do not have to fight over customers. Buyer Bargaining Power The buyer bargaining power is increased with more entrance it is more likely that the consumer will have the choice to purchase a product with the lowest price.
When grouping the customers by age, it shows that around 80 percent are between thirty to sixty years old, with the age “40 to 50” and “ 30 to 40” are the top two group both having a large percentage around 30% (Table 4). Referring to the data of the items one customer purchased, it shows that over half of customers would like to buy 1or 2 items in the store (Table 5). Then the statistics on the net sales indicate that over 74 percent of the customer would like to spend under one hundred dollar to buy products（Table 6). When it comes to the method of payment, 70 percent of the whole customers prefer to choose National Clothing Card, and the next two options are MasterCard and Visa (Figure 1). When investigating the relationship between the net sales and customer age, the scatterplot shows there is neither positive nor negative correlation between the two factors ( Figure 2).
iii. With the new technology of the Internet online retailers, such as Netflix and Amazon, are capable of monitoring consumer behavior. iv. With shipping centers strategically located throughout the United States members of the industry can promise that movies will be received within one to three days (30 distribution centers located throughout the United States and reaching more than 85 percent of their subscribers with generally one-day delivery) v. Netflix had a four year head start in front of competition which helps them control the majority of the online DVD rental market share. vi.
14 3.2.2 Vertical Scope: Involvement in the industry 15 3.2.3 Geographical scope: Geographical spread of the firm’s activities 15 3.3 Key Concepts of Analysing Nintendo’s Scope 16 3.4 Vertical Integration 16 3.5 Diversification 17 3.6 Managing Corporate Portfolio 19 4. Global Strategy 20 4.1 The National environment 20 4.2 International Location of Production 22 4.3 Nintendo in foreign market 25 Conclusion 27 Bibliography 28 Attachments 29 Executive Summary In this report we examine the successful strategy behind Nintendo’s Wii launch. We focus the range of our analysis mainly to the years that preceded the launch, i.e., from 2005 to 2010. Also, our primarily focus was on the underlined hardware’s success. However, we still had to analyse the gaming industry before the entrance of this product in order to fully understand what led to its success.
Technology analysis: Netflix operates a subscription-based movie and TV-show rental website and streaming services. Customers set up individual online accounts, were they can choose their favorite movies, they make a payment plan, and decide delivery options. Instead of heading to the video rental store, DVDs are sent through the mail in a postage-paid return envelope. A key component of their technology is a software recommendation algorithm that tries to maximize the number of movies rented by each customer by suggesting movies they might like, based on their previous ratings what you previously streamed and other users ratings. The algorithm is called Pragmatic Chaos, and uses machine learning techniques to find that, for example, the rating system people use for older movies is very different from that used for a movie they just saw.
Case 3 – TUI 22.10.2010 Table of content Introduction 3 Step 1: Identifying the main problems 4 1.1. Summary TUI 4 1.2. Problem Statement and Research questions 5 2.1 Internal analysis 6 2. 1. 1 Mind map 6 2.1.2 The strategic clock 7 2.1.3 Stakeholders map 9 2.1.4 Marketing Strategy, 7P’s 10 2.1.5 BCG matrix 11 2.2 External analysis 12 2.2.1 The PESTEL 12 2.2.2 Porter’s Five Forces 15 2.3 SWOT Analysis 17 2.4 Role and function of the corporate parent 18 Step 3: Alternative courses of action 21 3.1.