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netflix - Case Study Example
Author : hettingerbessie
Pages 8 (2008 words)
NetFlix’s Business Model and Strategy Name of the Student University Executive Summary NetFlix’s business strategy is well aligned to the basic requirement in a movie rental business. They have a wide selection of videos and cater to almost all genres…
NetFlix has near zero rental charges for its subscribers and that is what sets it apart from its rival firms. Having satisfied the 3 basic criteria’s for successful business, this paper is aimed at examining what were the possible driving forces that led to such good market standing of the company. Along the same discussion we also point out various strategic and competitive challenges that the firm might face in near future and suggest means to minimize the impacts of those threats. Introduction At the onset, Netflix started off as a DVD rental provider that used internet to take orders. Subscribers made their selection over the portal and mailed in their orders. The DVD’s would then be delivered via mail. The entire system allowed the customer to keep the DVD’s as long as they wished to, without an extra charge. Netflix derived its major revenue from their subscription plans that incorporated costs of streaming, mailing and renting of videos. As we moved to the digital age, internet streaming and online viewing has caught up. NetFlix has welcomed the change and continues as leader by innovation i9n the video rental market. DVD renting, though, has not lost its value just yet (Hillary, Alex, & Ian, 2009). ...