Lessens need to purchase “hard copy” of these. * Other competitors; Circuit City, CompUSA, Amazon.com, even Wal-Mart, Target, etc. * Possibility of losing customers to wholesale business. I think that for the most part Best Buy has lived up to their mission statement, because they are at the intersection of technology and life. I believe this to be true because they offer some of the newest technology in their store and it is place where people can actually interact with salespeople in real life.
Analysis We will use the S.W.O.T. analysis to begin address the issue and to indentify appropriate strategies for consideration. Strengths Companies Innovations: • Proprietary recommendation system- It’s the main source of sustainable competitive advantage of Netflix. The system provides value to the DVDs rentals by expanding and customizing the customer’s movie preferences. Knowing that one of the basic assumptions about market participants is goal-oriented behavior, where the users are interested in fulfilling their personal goal; this is a good call.
Kudler Fine Foods Virtual Organization Kudler Fine Foods (KFF) is an established business that survived the initial period successfully and grown by adding two additional stores. Because of owner’s prudent management the business presence in the market is solid, although other competitors represent a threat. Additionally the threat of handling perishable goods is also present, but competitors have the same issue plus KFF can compete with reasonable prices to make it attractive to customers (Kudler Fine Foods, 2012, p. 10). KFF needs to initiate marketing research analysis to pinpoint the areas of opportunity and improvement. In this analysis a secret shopper should be part of the research to visit stores around the three KFF establishments
The subscription system of Netflix is a web-based system that allows customers to order DVD online using a web service that quickly delivers by mail movies they can keep as long as they want. The software system is vast and complex and which helped Netflix changed the video distribution industry. First, the system computes who gets what movie next. This can be very challenging but at the same time is very important to support its subscription based business model and allow even low-frequency watchers to get movies appropriately. Second, the system allows calculating which movies will be in demand.
Mission Statement We endeavor to be a leading company in distributing entertainment content that is affordable, accessible, quality and affordable. We also want our shareholders to earn better sustainably. Our employees should also have an environment that grows them and thus work well in entertaining the society and making it livelier. Identifying Company Goals and Objectives Netflix aims to retain and increase its members through blogs, social media forums, and internet presence and through the usage of mobile applications. It is also our dearest objective to capitalize heavily on our competitive advantage of being the leading distributor of online content.
• Competitors like Marvel are wooing customers with low cost per click-through • Condition-specific websites like cholesterol.com has a better chance of converting a visitor to a customer. • Setting a price competitive to Marvel’s would drop MedNet’s revenue by 80% • Since advertisements are the only source of revenue, MedNet’s has to rethink their revenue generation strategy to sustain their business. • It is considered as a product problem because they may have to change the value proposition Note that technology is fragmenting the market and disrupting the business model What are the decision options? • Charging for the content, treating site visitors as patients. • Extend coverage of alternative health information • Develop and manage corporate websites What does he/she need to know to make a decision?
| Longest lasting online grocery chain. | They are only located in the New York area. | Can provide better advertising of the company to the potential customers. | When stores put the exact same items or products on sale. | ANALYSIS VIA PORTER’S FIVE FORCES MODEL The threat of new entrants in the online grocery business could lead to the company having to lower their prices and also, may have to lower their delivery fee just to compete with the newer companies that are trying to start out in the online business.
Zappos does not complete on price because it believes customers want to buy from the store with the best service and selection. The company strives to create a unique and addicting shopping experience. The spirit of simplicity, innovation, and great service extends to Zappo’s inventory and distribution systems as well. Zappos has one of the few live inventory systems on the Web. If Zappo’s displays an item, it is in stock.
Strategy Recommendation. Although Sony's products have advantage in term of price, the research suggests that this element is powerful but not sufficient to compete with Barco's products which have better performance. In order to segment the market with Barco, Sony introduced the new graphic projector 1270 which had a better performance and shocked Barco. We believe a plan associates with pricing and product strategy in order to deal with the loss of consumer. Since Barco cannot win price war against Sony, it is more safely and comprehensively to make fix a price after Sony gives their price of 1270.
Netflix will give customers more value for the money. Netflix will achieve best-cost status by delivering attractive attributes such as, Better customer service, website features, faster delivery, and offering a wider selection of DVD's at a lower cost than their competitors. Netflix can operate at a level lower than their rivals mainly due to experience and the learning curve. Netflix is incorporating a hybrid of low cost and differentiation targeting value