Simulation And Netflix
Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose. Assess how these segments affect the corporation you chose and the industry in which it operates.
The two segments of the general environment that ranks highest in their influence on Netflix would be the technological segment and the demographics segment.
The technological segment includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes and materials (Hitt, 2013). The technological segment affects Netflix because in order to keep a competitive advantage over companies such as Amazon Prime and Hulu, Netflix has to keep up …show more content…
The different tactics that Netflix could use to overcome these weaknesses would be to partner with different Hollywood studio companies and come up with a contractual agreement to make sure that Netflix stays full stocked with new releases so there will always be an ample supply of new releases.
As far as customer wait times for DVD Netflix needs to make sure that their distribution centers are able to have one day shipping so customers can receive their DVD or Blu-ray rentals in a timely manner instead of having them shipped out the next day. Netflix had a popular $9.99-a-month DVD rental and unlimited streaming plan that Netflix decided to separate into two different plans. Now if you rent a DVD and would like an unlimited streaming plan Netflix charges $7.99 a month for each (Gilbert, 2011).
Netflix needs to re-evaluate their pricing strategy because if you have loyal customers, you can’t just change the prices because customers will look for other companies that are cheaper. Netflix should have kept the prices the same for their loyal customers who were already members, and introduced the new prices and plans for new potential customers.
Determine the company’s resources, capabilities, and core …show more content…
Netflix realized that when most people want to rent a DVD they have to go to the store and rent it. Netflix came up with the idea that you can use internet services to rent videos and ship them to your home and that video streaming technology had become better and easier to obtain for the average viewer at home. Keeping up with that trend, the company started offering online streaming content. Online streaming has become very profitable for the company because half of its 11 million subscribers have used the "watch instantly" feature -- movies and shows without
The two segments of the general environment that ranks highest in their influence on Netflix would be the technological segment and the demographics segment.
The technological segment includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes and materials (Hitt, 2013). The technological segment affects Netflix because in order to keep a competitive advantage over companies such as Amazon Prime and Hulu, Netflix has to keep up …show more content…
The different tactics that Netflix could use to overcome these weaknesses would be to partner with different Hollywood studio companies and come up with a contractual agreement to make sure that Netflix stays full stocked with new releases so there will always be an ample supply of new releases.
As far as customer wait times for DVD Netflix needs to make sure that their distribution centers are able to have one day shipping so customers can receive their DVD or Blu-ray rentals in a timely manner instead of having them shipped out the next day. Netflix had a popular $9.99-a-month DVD rental and unlimited streaming plan that Netflix decided to separate into two different plans. Now if you rent a DVD and would like an unlimited streaming plan Netflix charges $7.99 a month for each (Gilbert, 2011).
Netflix needs to re-evaluate their pricing strategy because if you have loyal customers, you can’t just change the prices because customers will look for other companies that are cheaper. Netflix should have kept the prices the same for their loyal customers who were already members, and introduced the new prices and plans for new potential customers.
Determine the company’s resources, capabilities, and core …show more content…
Netflix realized that when most people want to rent a DVD they have to go to the store and rent it. Netflix came up with the idea that you can use internet services to rent videos and ship them to your home and that video streaming technology had become better and easier to obtain for the average viewer at home. Keeping up with that trend, the company started offering online streaming content. Online streaming has become very profitable for the company because half of its 11 million subscribers have used the "watch instantly" feature -- movies and shows without