Established in 1997, Netlix has become a network of 15 million users and has multiple competitive advantages that give this company its particular edge. One advantage that Netflix has over competitors is the first mover advantage. It was the first movie rental company to offer DVD delivery services without late fees. Later, competitors such as Blockbuster, Family Video, OnDemand, and Red Box followed the model of Netflix; however, they do not share the same qualities and successes as the original. 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.
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."
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.
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.
Great inventory system- they look at subscribers queues ahead of time and use a national inventory system so they always have the right product in the right place at the right time. 1. delivery time= key measure of subscribers satisfaction v. Customers can freely unsubscribe to Netflix willingly and they will be invited back later on, and all their preferences will still be in the system. vi. They emphasize recommending older movies to their subscribers (only 30% of their business is new releases as opposed to 70% of blockbusters business) b. What advantage do they have relative to a Blockbuster or Hollywood Video retail chain?
FedEx adopted an aggressive training program from competitive wages and profit sharing , bonuses , and a state of the art employee grievience process that are part of the PSP philosophy . by doing all of these things it will reflect positively on the performance of FedEx employees hence the quality of the service they deliver and the satisfaction of the internal customers will reflect also to the satisfaction of the customers with the speed and the quality of the service they are receiving . Another perspective that is being emphasized by FedEx is the system perspective where it focuses on the service side and that the customer becomes more the central in the thinking of the FedEx operation managers. the reason behind adopting this perspective is the aim to fulfil cutomers expectations and keeping them satisfied by delivering on time. Quality management at FedEx compasses all of its operations.
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
By creating a positive learning environment, the business is better equipped to conduct business, keep staff for longer and ensure the goals of the organisation are met and kept; the creation of an efficient work environment is periodical in nature and means that the organisation has a better trained and well equipped workforce. Maximising participation can be accomplished by allowing the staff that will be taking the learning events are involved in decision and the manner of the training, the design of the training or by doing a skills audit on the team or staff member that to determine what, if any training is required, and if the training is directly related to the needs of
Secondly, Domino’s is providing flexible time schedules to its employees as a results employees’ ‘Perceived Organizational Support’ toward Domino’s has increased as it is concern about their well-being. Thirdly, Domino’s sends a goodwill gesture towards its employees by naming its Human Resource Department as ‘People First’. It shows that contributions of workers are appreciated at Domino’s and it believes in the philosophy that ‘People can make a Difference’. Fourthly, Domino’s strategy is also successful in reducing its costs of recruiting, hiring and training employees by making them more
Reduced absenteeism, though often overlooked, is also a legitimate business rationale; flexible options not only strengthen commitment, but also give employees more time to handle the very situations that sometimes lead to absenteeism. Flexible work programs provide a way for businesses to increase employee loyalty without resorting to making fundamental changes in their operations. The most popular flexible work options are those that involve the least change. Flex-time and compressed work weeks, for example, call for the same number of hours, at the same workplace, as in traditional work arrangements." In addition, some supporters of flexible work arrangements argue that such programs can actually have a positive impact on the productivity of employees.