StudentShare solutions
Triangle menu

Netflix and Direct TV Case Study - Research Paper Example

Nobody downloaded yet

Extract of sample
Netflix and Direct TV Case Study

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. This differentiation strategy enables Netflix to be unique compared to its rival competitors; customers are attracted to a business that caters for their needs effectively compared to other businesses. Netflix’s Target Customers Netflix targets all levels of customers by implementing a subscription plan, which enables clients to subscribe to their preferred plan. This is an added advantage to the company as all levels of customers are catered for, therefore ensuring that customers receive the best services at affordable prices. Netflix Rivals and Threats Posed In an industry, competition is evident either from existing businesses or from new entries in the market. According to the New York Times (2007), netflix experienced a heavy blow of loses due to the stiff competition from Blockbuster, which had implemented a total access program that enabled customers to swap a rented movie online for an in store movie. This strategy enabled Blockbuster to attract Netflix’s customers. DIRECTV is another rival competitor, which provides direct broadcast satellite, and delivers exemplary video experience at a much cheaper price, hence posing a threat to Netflix (form 10K, 2010, p.2). Fig 1. The competition analysis of Netflix and Blockbuster (2007) Netflix and Direct TV Netflix and Direct TV companies are seeking a competitive advantage in their operating industry; hence, they have different strategies of achieving their success. Direct TV aims at delivering the best services at all times and in any place; the company is emphasizing on quality video experience and targets the entire American population, especially with the popularity of DVRs. They are working towards breaking the norm of watching television only at home, therefore working towards introducing television and video experience any time and anywhere. Movie packages Direct TV is a threat to Netflix, since it is competing for the same market, therefore, customers can either choose to use either of the two companies’ services, to easily access entertainment. Both companies offer services at a specific monthly fee; Direct TV offers four television packages in English language, with the minimal packager ...Show more


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…
Author : bartelleloise
Netflix and Direct TV Case Study essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Netflix and Direct TV Case Study"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The service is provided over internet for watching movies and TV episodes on PCs, TVs and Macs. The company is operated with over 2000 employee at its corporate headquarters and at the shipping centre (Rappa, “About Netflix”). The company offers various subscription plans for the customers stating at just $7.99 for the unlimited service for watching movies and TV episodes.
6 pages (1500 words) Research Paper
It was founded in 1998 and is based Los Gatos, California. The company offers on-demand internet streaming media in the U.S., Canada, and Latin America and has announced that it will expand it operations into the European market starting with Spain by 2012 (Whitehouse, 2011).
5 pages (1250 words) Research Paper
Charismatic and visionary leadership: Reel Hastings
Reed Hastings is the founder and CEO of Netflix company. The characteristic leader in Hastings allowed him to check into the market and identify opportunities that other companies were not able to identify. Leadership is defined by given characteristics, values, vision and effectiveness.
12 pages (3000 words) Research Paper
Case study
The fear started only yesterday, when Angel started to refuse violently the insulin shot to be given by her mother. Not wanting to hurt their daughter further or to cause any complications from her diabetes, the couple immediately
3 pages (750 words) Research Paper
The Technology of Netflix
If the model is applied to Netflix, one of the largest online movie rental companies, it can be concluded that the company competes with its competitors on cost leadership cum differentiation strategy. The reason behind
3 pages (750 words) Research Paper
The market analysis is guided by the company’s description of its competitors as: (1) “over-the-top” Internet movie and TV content providers such as YouTube and iTunes; (2) multichannel
2 pages (500 words) Research Paper
Case study
A faculty member who wishes to expose students to circumstances that require application of ethical principles, irrespective of distance, intends to introduce ‘Internet
2 pages (500 words) Research Paper
Reed Hastings CEO of Netflix
Reed Hastings is the founder and CEO of Netflix company. The characteristic leader in Hastings allowed him to check into the market
12 pages (3000 words) Research Paper
Netflix distraction
with your friends may not be deemed desirable, since the time can also be used to concentrate on work, finish the homework, complete some house chores or other similar activities. Now, in this context the question arises regarding whether or not these distractions lead towards
11 pages (2750 words) Research Paper
NETFLIX Strategic Analysis
Economic: Economic situation of the nation is somewhat uncertain. Financially the country has been badly affected by the recession. It is still in the phase of recovery. Due to some stimulus packages, the economy is improving but
6 pages (1500 words) Research Paper
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us