A Case Analysis Framework of Netflix Embry-Riddle October 5, 2011 Executive Summary Netflix Inc., with 20 million subscribers as of December 31, 2010 is the world’s leading Internet subscription service for enjoying TV shows and movies. Their subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and, in the United States, subscribers can also receive standard definition DVDs, and their high definition successor, Blu-ray discs, delivered quickly to their homes. Netflix’s core strategy is to grow our streaming subscription business within the United States and globally. The company is continuously improving the customer experience, with a focus on expanding our streaming content, enhancing user interfaces and extending Netflix streaming service to even more Internet-connected devices, while staying within the limits of the company’s operating margin business has and continues to evolve rapidly. 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.
In accordance with the case study to the business approach and strategies of Amazon it can be said that the company has been able to continue to grow and expand their business in the online market. It can be said that Amazon has been able to use various strategies which enable them to sustain their competitive position in the global market. Based on the conducted reviewed in the previous section, it can be said that Amazon strategy includes differentiation approach and innovative approach. In doing so, the company has been able to have a sustainable focus on their core business values ensuring that their goals, objectives and mission are achieved. In addition, the company has been able to sustain good relationship with its target market and all other stakeholders and the company focus itself on satisfying the costumers by providing them quality products and services in the online.
As a result, consumers are more likely to spend on a good quality rental services that provide newest on-demand movies. • Change in technology – as I mentioned before, smart TVs are one of the favorable technological shifts that helped movie rental industry to gain bigger market share. Companies that provide high-speed Internet services are also key players because their product affects the demand for online movie streaming. These technological changes and many other innovations helped movie rental industry to prosper but there might be other innovations that could impact companies like Netflix. Continuous research and development is the key to changes in technology and Netflix has to stay on top of it all.
People love good service, convenience, and saving money. Live Nation has strategically figured out how to give their clients everything that they need to continue to be successful. Most importantly, they keep the entertainers connected to the fans through concerts, products, records sales, videos, and the Internet. ------------------------------------------------- If an entertainer does business with Live Nation, we feel that an entertainer will be reassured that the company will definitely be trying to provide the best services possible and maximize their earnings. When other entertainers witness these new strategic services, they will be attracted to the company as well.
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.
Netflix: Case Analysis Core Strategy: Netflix’s main strategy is to grow their large subscription business which combines both streaming TV/movies and DVD’s by aggressively pursuing new content deals. They realize that the more content that they can offer their consumers, the more subscriptions they will sell, and the more loyal their current customers will be. Additionally, Netflix recognizes that their competition is quickly adapting to their current content strategies; therefore, they expect to further develop their advantages such as brand, distribution, and their proprietary merchandising platform. Strengths: * High online retail customer satisfaction ratings and high customer loyalty produces excellent word-of-mouth. * Largest online media retailer.
Time Warner’s businesses strive to gain competitive advantage from opportunities for useful collaboration. The company’s perspective is to become the world's most respected and valued company by connecting, informing and entertaining people everywhere in new ways that will improve their lives. Time Warner includes divisions such as Warner Bros, HBO, Turner Broadcasting, and popular magazines such as People and Time Magazine. AOL (America Online) is an American global Internet services and media company operated by Time Warner. Even though AOL does much more it is more recognized for the best known online software.
This force will have a favorable effect on future industry profitability due to it can increase the number of consumer. However, this force is unfavorable in term of competitive intensity since the firms within the industry will compete to provide the latest movie to its consumer. Another force that driving changes in movie rental industry is emerging new internet capabilities and applications. Internet has became one of the major influence in the many industry on how the firm conduct the business. Currently, people can access the internet almost everywhere and the speed of transferring data through internet has improved significantly.
The extent of data derived from social media site, nowadays, requires an efficient team media analytics expert. In fact, social media, today, is proving to the major source of big data for companies and this raised the importance of social media analysis even more. The use of social media marketing has the raised the conversion rates significantly. This means that a company’s the targeted group of consumers are turning into its permanent customers. All thanks to data collected through social media platforms and media analytics experts, businesses, especially startups, are have managed to establish a brand value among their competitors.