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Netflix and Direct TV Case Study - Research Paper Example
Author : bartelleloise
Pages 5 (1255 words)
Running head: Netflix & Direct TV Case Study Insert Name Insert Grade Course Insert 11 November 2011 Netflix Case Study The Generic competitive strategy for Netflix Netflix is the leading internet subscription company with over 20 million subscribers who enjoy unlimited television shows and movies via internet connection to their computers…
These generic strategies include cost leadership, differentiation and cost focus. Netflix has managed to woo customers over the years; for instance, it offers free trial membership to its new customers, which enables customers to try out its services. Differentiation Strategy Netflix has managed to maintain its market share via achieving a competitive advantage. This was the first company to break the norm of driving to a movie store to purchase a movie, therefore attaining a first mover advantage (Noise between stations, 2007). Other companies like Blockbuster required an individual to drive all the way to the stores to purchase or rent a movie, although this company followed in the footsteps of Netflix, shortly after. Therefore, due to technology in this industry, customers can now select from thousands of movies online and choose their favorite. In addition, customers enjoy movie shopping from the comfort of their homes or offices. The growth of online sales has contributed to the success of Netflix; indeed, over the years, the company does not charge its customers for movie return delays, unlike Blockbuster. ...