Netflix
3. Prepare a discussion based on the following points: (1) Driving forces analysis, (2) Strategic group mapping, (3) Competitive strenght assessment, (3) Financial ratios analysis and (4) What are the company's competiively important resources and capabilities? The link below will help you to get more infomation about the company's performance. If you need additional infomation related to Netflix to support you discussion, find out through internet.
At Netflix the technology is the operations. But in an operation that relies on constant product turnover, can the IT keep up the speed up while supporting rapid growth in a business in which margins are shrinking?
Driving force
As we all know, technology is the primary driving force for just about everything Netflix does. Netflix became the worlds largest subscription service for sending DVD's by mail and streaming movies and TV episodes over the internet which attracted over 15 million subscribers by July of 2010. On the other hand, blockbuster and movie galleries were facing financial disasters and even bankruptcy. Netflix didn't have much competition and was able to increment profit through their online renting store. For instance, consumers were able to, purchase movies, DVD's and TV episodes from any retailer such as Walmart or amazon. Also, they were able to watch movies on assorted cable channels included in the TV and entertainment packages provided by traditional cable providers. In my opinion, Netflix forced the industry to move from the traditional way of watching a movie into digital technology, meaning all consumers were able to rent or buy movies and TV episodes from the comfort of their home.
Strategic Group Mapping
Netflix |
Strategic Analysis (Nov 2007) |
|
Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great
At Netflix the technology is the operations. But in an operation that relies on constant product turnover, can the IT keep up the speed up while supporting rapid growth in a business in which margins are shrinking?
Driving force
As we all know, technology is the primary driving force for just about everything Netflix does. Netflix became the worlds largest subscription service for sending DVD's by mail and streaming movies and TV episodes over the internet which attracted over 15 million subscribers by July of 2010. On the other hand, blockbuster and movie galleries were facing financial disasters and even bankruptcy. Netflix didn't have much competition and was able to increment profit through their online renting store. For instance, consumers were able to, purchase movies, DVD's and TV episodes from any retailer such as Walmart or amazon. Also, they were able to watch movies on assorted cable channels included in the TV and entertainment packages provided by traditional cable providers. In my opinion, Netflix forced the industry to move from the traditional way of watching a movie into digital technology, meaning all consumers were able to rent or buy movies and TV episodes from the comfort of their home.
Strategic Group Mapping
Netflix |
Strategic Analysis (Nov 2007) |
|
Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great