Netflixcase

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Apr 3, 2024

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Daniel Welch Netflix Discussion Case GBA 490 322 Netflix 1. Competitive Rivalry (High) - Major companies like Netflix, Amazon, Disney, Hulu, Apple, and NBC (Peacock) are battling for subscribers. Each company has started its own original content division to gain an advantage. Threat of New Entrants (Moderate) - Building up a quality library of movies and shows takes time and money. Companies like the ones above are established and already have the customers and resources to compete. Threat of Substitutes- (Low) - Cable and satellite television are technically substitutes but not trending in the right direction as streaming is much more convenient. Buyer Bargaining Power (High) - Consumers have lots of choices with low switching costs. This increases the demand for content and competitive prices. Supplier Bargaining Power (Moderate) - At one point, producers and studios had high bargaining power to demand favorable terms from streaming companies. However, original content is on the rise to reduce costs from suppliers. 2. Technological advancements are favorable as higher quality videos and faster internet speeds are enhancing the streaming experience. The war between streaming companies is unfavorable as the competition for original content or exclusives is hurting costs and profits.
3) Netflix is in a good position as they have a relatively high-priced plan with the most users in the market. 4 Quality of content Global expansion Competitive Pricing Partnerships Adapting to trends 5) Netflix uses differentiation by offering unique content to users. They invest in original content and lead the industry in terms of the quality of original content. Netflix’s main focus is global expansion. They have multiple subscription plans catered to countries across the Price # of use rs
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