Netflix Case Study Essay Example
Netflix's Business Model and Strategy in Renting Movies and TV Episodes
Netflix has a simple strategy, but it works. From the case it is obvious that Netflix has been growing continually year upon year. When employing the fit, competitive advantage and performance tests, Netflix’s strategy surpasses all. Even though Netflix has some competitors, they blow them out of the water with price and convenience for customers. By continually enhancing their selection and fostering relationships with entertainment companies, Netflix will continue to grow and one day be in every home across Canada.
Netflix has a simple business model and strategy. The strategy from chapter one that is most similar to Netflix is dependable strategic approach number two, “Outcompeting rivals on the basis of differentiating features, such as higher quality, wider product selection, added performance, value-added services, more attractive styling, and technological superiority.” Netflix capitalizes on this strategic approach. The evidence to support this strategy choice is the following:
• Netflix has a very wide selection of DVDs to choose from
• Netflix adds performance by continually building and maintaining relationships with entertainment providers so as to expand the title selection even further
• Netflix provides value added service by prescreening movie choices for customers based on peer reviews and previously enjoyed movies. This makes it easier for customers to find movies they are likely to enjoy.
• Netflix has more attractive styling mostly due to their high levels of marketing
• Netflix is technologically superior due to the fact that movies can be streamed directly onto nearly any device in a matter of seconds
Netflix’s business model is to provide customers with access to the DVDs they want, instantly, for a very competitive monthly subscription. With a choice between eight monthly subscription plans and first month free promotions, there is a plan to suit every
Netflix has a simple strategy, but it works. From the case it is obvious that Netflix has been growing continually year upon year. When employing the fit, competitive advantage and performance tests, Netflix’s strategy surpasses all. Even though Netflix has some competitors, they blow them out of the water with price and convenience for customers. By continually enhancing their selection and fostering relationships with entertainment companies, Netflix will continue to grow and one day be in every home across Canada.
Netflix has a simple business model and strategy. The strategy from chapter one that is most similar to Netflix is dependable strategic approach number two, “Outcompeting rivals on the basis of differentiating features, such as higher quality, wider product selection, added performance, value-added services, more attractive styling, and technological superiority.” Netflix capitalizes on this strategic approach. The evidence to support this strategy choice is the following:
• Netflix has a very wide selection of DVDs to choose from
• Netflix adds performance by continually building and maintaining relationships with entertainment providers so as to expand the title selection even further
• Netflix provides value added service by prescreening movie choices for customers based on peer reviews and previously enjoyed movies. This makes it easier for customers to find movies they are likely to enjoy.
• Netflix has more attractive styling mostly due to their high levels of marketing
• Netflix is technologically superior due to the fact that movies can be streamed directly onto nearly any device in a matter of seconds
Netflix’s business model is to provide customers with access to the DVDs they want, instantly, for a very competitive monthly subscription. With a choice between eight monthly subscription plans and first month free promotions, there is a plan to suit every