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Transcript of Netflix Case
http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/02/amazon-launches-netflix-like-service-with-content-from-warner-bros-sony-indies.html Adaptation Goal Attainment Supplier Power: There is a low number of suppliers in the industry Higher supplier competition Porter's Six Forces Analysis Competitive Rivalry Industry Threat of substitution Video On Demand
(pay per view)
Youtube Threat of New Entry Numerous websites that offer free online streaming Facebook is trying to make it possible for users to watch movies Buyer Power Market fragmented into several industries Choice: Features, Brand, Cost/Price Sources: Netflix Case Study Harward Review Political Economic Social Technological Integration Latent Values AGIL Early entry into DVD rental market
Utilitized consumer feedback to inhance distribution model
Recognized customers need for immediate solutions (0nline movies)
Entered mobile application segment 20 million subscribers
To be market leader in Video-On-Demand from the beginning
Decrease delivery times Going beyond new releases
Low stress environment (no return timelines)
Convenience Unlimited monthly rentals (subscription instead of per rental)
Advanced recommendation system
Appointment of Sardanos to manage relationships with studios
Partnership with Nintendo, Apple, Android Comcast "blocking" netflix
Copyrights, trademarks, patents, and licensing
Relationships with the studios Large entry costs in the market
Driven by low prices
Competitive environment Convience of "on-the-go"
Increased reliance on mobile devices for media
Consumers want most recent content Competing technology (Video on Demand [VOD], online streaming, blockbuster, redbox)
Wifi is used almost everywhere SWOT Strengths Weaknesses Opportunities Threats Largest online media retailer
Reliability of recommendation system
Lack of commercials Catering to studio demands
Too focused solely on movies
Relied on core mission statement
Lacking in new content
Older demographic struggles with new technology Strong Brand
"Netflixing" as a verb
Growth opportunities in international markets along with mobile viewing devices: Ipad, Iphone, Android phone, psp mobile, google tv etc.
Increased revenue through advertisement in mail. Increasing competition-Hulu, Amazon, Comcast online, Verizon online, Apple TV, Google TV black market streaming (sidereel/megaupload) even youtube has entered the movie streaming market.
Net Neutrality Wars
Hulu Plus offers ad-supported media Outside Information Netflix Case Study Power Point:http://www.slideshare.net/only1kiku/techindnetflix
Netflix Case Study Harvard Review
Boston.com Blockbuster Bankruptcy http://www.boston.com/business/articles/2011/02/22/deal_could_lift_blockbuster_out_of_bankruptcy/
Bloomsberg Businessweekk Redbox Web Strategy
http://gizmodo.com/#!5774743/the-nintendo-3ds-will-play-your-netflix FFA Netflix increasing market share Propelling Restraining Increased focus on streaming
(easier to provide international content)
Various subscription packages
Increasing content to appeal to larger audiences
Increased advertising online and in new markets Comcast and internet providers slowing traffic to site
Customers who are solely interested in new content
Customers precaution towards new technology (my parents still enjoy brick and mortor stores/redbox, complain netflix has movies we've never heard of" "Movies offered two ways for $8.99 a month" Netflix Case Study Robert Stillwagon, Paul McCauley, Klajd Kika, Elizabeth Caracino Executive Summary "Our appeal and success are built on providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery. " Netflix Mission Statement Core Problem: With increased market competition, Netflix must be able to keep their prices low, increase market share, and maintain their core values. In addition, their poor relationships with suppliers interferes with their ability to meet market demands. Core Issues Increased Competition
Sticking to Core Values Reminder Increase At Home Market Share Enter New Markets Marketing Initiatives Increase potential subscribers by focusing on foreign market.
Short term: Increase focus on Canadian market by acquiring zip.ca
Long term: Market Research on European demographic to analyze future opportunities Why this fulfills our problem: Increased Market Share Stronger Buying Power Leverages Relationships Fulfills Market Demand Conclusion Partnership With Distributors PEST Analysis Outside Information Netflix advertsiementhttp://www.zatznotfunny.com/2005-11/netflix-experiments-with-advertising/
Net Money provider
http://easygreensy.com/2008/09/a-simple-green-way-to-reuse-your-netflix-envelope/ Other Home Entertainment Companies
http://www.closinglogos.com/page/Other+Home+Entertainment+Companies Netflix, Inc. (NFLX) Competitors
http://www.nasdaq.com/screening/viewcompetitors.asp?symbol=NFLX&selected=NFLX Shifting Online, Netflix Faces New Competition
http://www.nytimes.com/2010/09/27/technology/27netflix.html Google Image (Logo):
Blockbuster - www.blockbuster.com
Comcast Xfinity - www.xfinity.com
Verison Fios - verizon.com/FiOS
Hulu - www.hulu.com
Best Buy CinemaNow - www.cinemanow.com
MovieBeam - www.moviebeam.com
Apple TV - www.apple.com/appletv
Google TV - www.google.com/tv