Entrepreneurship Case Netflix

For an exchange to take place there has to be five conditions that are met. The first one is that they must be at least two parties. In this case it would be the company Netflix and the customers. Second each party must have something that would be of value to the other party. Netflix has the DVDs that customers want to watch and the customers have money to pay for them. They also have DVDs that need to be returned to Netflix after watching them. Each party has to be capable of communication and delivery. Netflix has 34 strategically placed warehouses it uses to ship out the DVDs. They also have live operators to help out if there are any questions. The customers receive a paid packaging from Netflix to return the DVDs to the company. Each party has to be free to accept or reject the exchange offer. The customers can call the operators if they feel they haven’t received good service. The customers also have a choice of which subscription plan they would like to choose. Finally each party believes it’s desirable to deal with the other party. Netflix has a lot of options for their customers making them easy to work with.
Netflix clearly works from a marketing orientation. Market trends that Netflix has capitalized on are the increasing development of home theatre entertainment systems, time-starved consumers, the development of the Internet and the acceptance of e-commerce, the flexibility and quality of the DVD format, 24-hour consumerism, and the market’s desire for an extensive selection of available movie titles. Netflix delivers obvious customer value and satisfaction by exceeding expectations when it comes to fast delivery, delivering exactly what customers want precisely when they want it, and by offering customer-requested service extensions such as the Friends network and multiple preference lists for each subscribing household.
Netflix focuses on improving relationships with current customers by coming out with new features that the customers have