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Netflix Competitive Advantage

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by

Paolo Manaloto

on 30 January 2014

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Transcript of Netflix Competitive Advantage

Competitive Advantage
Inbound DVDs
Procurement
non-mainstream movies (Sundance films, Independent films, etc.)
Logistics
USPS returns red envelopes to distribution centers

Outbound DVDs
Distribution
Larger coverage with more distribution centers across the country, 1-day delivery

Netflix Competitive Advantage
Sources of Competitive Advantage
Paolo Manaloto and Ben Sayawat

Resource Analysis
Tangible
Dvd stock is not differentiated
Distribution centers valuable due to subscription model
Intangible
Software
easy to imitate, but rare at the time
Reputation
Rare and hard to imitate
Organizational Resources
Tangible
Dvd stock
Distribution centers

Intangible
Software and Algorithms
Reputation
Indie Selection
Fast delivery
Ease of use
Human
Passion for movies
Executive relationships
Netflix's Competitive Advantage
Value Chain Analysis
sources of Competitive Advantage

Organizational Resources
Resources and Capabilities

Streaming Advantage
Presented by:
Technology
Search Criteria
Customers can search for movies by title, actor, director, genre
Large Database
Larger selection of DVDs available through software integrated with outbound logistics.
Recommendation System
Proprietary Algorithm offers personalized suggestions on in-stock movies
Customizable Queue
Customers can save a list of movies that will automatically be delivered once previous movies are returned
Competitive Advantage
Marketing
No Late Fees
Hold onto 3 at a time
Unlimited Rentals
Source of Independent films

Streaming Competitive Advantage
Creating New value
Offer recommendation service
Offer alongside current service
Create a separate, and new service
All options are based on Netflix's Reputation
Full transcript