Netflix has undergone a journey of massive development. It has turned into one of the digital market’s major force through its effective policies and presence. Despite the success, the company heads in the form of Reed Hastings are all aware of the competition faced with as a result of continuous strive towards improvement in the performance…
Video rental industry serves as one of the oldest in the modern times in terms of customers’ attention and interest. New trends and new competitors in the form of Blockbuster Inc. was largely influential in the 1990s but were soon overtaken by Wal-Mart, and Netflix and each set a new precedence for effective customer-oriented marketing practices.
Netflix in contrast to the previous market dictating Blockbuster Inc. followed a relatively different supply chain mechanism with regard to customers reach out. Netflix ensured overcoming the physical constraints which were one of the reasons why Blockbuster suffered market sweep and overall costs. Netflix ensured timely delivery which in turn led to increased customers trust and earning their loyalties. Cine match was another move aimed at bringing about more customers interaction.
Netflix is equally aware of equipping itself on the digital front with concepts like advanced algorithms implementation.
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(Netflix and Its Development Book Report/Review Example | Topics and Well Written Essays - 500 Words)
“Netflix and Its Development Book Report/Review Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/marketing/752820-case-study-review.
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).
Netflix, an online company that rents DVD movies to its customers has various strategies that ensure that its other customers do not take their customers. Some of the strategies include, avoiding overhead costs like utilities and rent to run physical stores instead they use the capital to ensure they have all the DVDS their clients and subscribers need.
In this similar context, the movie rental industry is also seen to be perfectly competitive. In order to gather a precise understanding regarding the nature of competitiveness in the movie rental marketplace, the five-forces analysis has been conducted in the following (Thompson, n.d.).
The company’s market divides into groups like DVD vending kiosk, mail delivery services, online rental and sales, as well as video demand services that are accessible through vast devices. Advancement in technology has boosted the video entertainment industry, with companies like Netflix gaining the most because customers can now access videos straight from home through computers, TVs, Smart phones, and even tablet devices (Nelson and Quick, 2012).
1. Watching movie by subscriptions- Netflix had set up a strategy by providing as many as eight subscription plans to its customers (Thompson 282). The most successful plan was its $8.99, $13.99 and $ 16.99 where the customers could avail all its movies in its
connectivity is the biggest trigger that boosted the business of Netflix as the company altered its business strategy as the internet connectivity got better and convenient for the users. At the time the company was private and had limited resources, it could barely serve the
The company’s market divides into groups like DVD vending kiosk, mail delivery services, online rental and sales, as well as video demand services that are accessible through vast devices. Advancement in technology has
Netflix has successfully launched its services in France, Germany, Austria, Switzerland, Belgium and Luxembourg earlier this year. The company boasts of more than 50 million members globally who reportedly view TV shows and movies for two billion