Case 4 - Netflix
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case 7
Netflix’s 2020 Strategy for Battling Rivals in the Global Market for Streamed Video
Subscribers
ASSIGNMENT QUESTIONS
1.
Five Forces Analysis a.
Threat of New Entrants: (Moderate) The streaming industry is very competitive but for new entrants to enter the industry it would take extensive amounts of money for someone to gain the technology and content needed to be successful with a streaming service. b.
Competition From Substitutes: (Moderate to Weak) Competition for the streaming industry include, DVD’s, Cable, VHS’s, VCR’s. Although the internet and technology have become very prominent today, it is unlikely that substitutes will drive demand for streaming services to decrease.
c.
Buyer Power: (Strong) Since there are so many different streaming platforms, buyers have a wide range of options to choose from. Also since streaming is so popular consumers will more than likely have at least one or multiple streaming services. This
causes for demand and profitability to increase and remain positive in this industry. d.
Supplier Power: (Strong) Since suppliers are where streaming services get their content, the impact of supplier power is very high. They can deny platforms the rights
to use content leading to a decrease in demand and profitability since consumers will likely not want to pay for a platform that does not have specific shows. e.
Rivalry: (Strong) The streaming industry is very competitive. There are tons of rivals in this industry. The demand for streaming services is at an all-time high and will likely stay this way. Although profitability will potentially decrease for certain platforms due to rivals. 2.
All the driving forces are favorable in terms of competition and profitability for the streaming
industry. a.
Driver of change #1 pervasive consumer access to both wired and wireless high-speed
internet connections. The high-speed data connections increase demand for user who
want to stream content on multiple devices. This also causes for competition to increase due to different streaming apps having different content that users may want.
b.
Driver of change #2 shift in consumer preferences worldwide. Demand for streaming services and competition increase since more consumers are switching to streaming services to watch content at any time they want instead of when it was aired on cable tv. c.
Driver of change #3 product innovation. Companies are creating bigger and better content libraries to bring in more consumers. This increases demand and competition because each company must try and have the most wanted content in order to get consumers to want to pay for their streaming service. 3.
The strategic group map indicates that the streaming industry is competitive and crowded. The companies listed do not all equally compete since they are all priced differently and offer
different amounts of content variety. However, Netflix is positioned well on the map with one of the largest revenues and content varieties offered. 4.
Key factors that will determine a streaming company’s success in this industry in the next 3-
5 years include content, technology, and business models. Content will affect the success based on how good the quality and variety is that is offered. Technology will only continue to grow and advance. Companies that stay up to date with technology and ensure that their platforms are easy to use better also the best quality they will succeed. As for business
models, this plays a huge role in a company’s success. By adopting new business models and
adapting companies will be able to stay on top of marketing opportunities, product innovation etc. 5.
According to Netflix CEO their goal is to build the world’s best internet service for content, continuous improvement of their content offerings and services faster than their rivals, and to
attract a growing number of subscribers each year. They are trying to achieve a competitive advantage through product differentiation. Out of the five generic strategies Netflix best resonates with best cost-provider strategy. Netflix’s strategy is giving subscribers options when it comes to picking a plan to fit their needs, using recommendation software to enhance
user engagement, and offering a variety of content. 6.
Netflix in 2020 was overall attractive to consumers due to their variety of content and methods of streaming. Below is a SWOT Analysis. Strengths: high speed internet, mobile device streaming, offering different streaming plans, no ads, new software
Weaknesses: Not having benefits to advertising for other companies resulting in ad-based plan for cheaper, loss of popular shows
Opportunities: Expanding services worldwide, adding to the variety of content offered, local language film releases
Threats: Amazon being able to track users searches and habits leading to powerful advertising campaigns, loss of popular shows to rivals
7.
Netflix has a strong operating performance but have some concerns when it comes to financial performances. Netflix’s gross profit margin steadily increases over the years indicating positive profit gain generating revenue. Their operating profit also shows consistent improvement indicating they have control over their expenses and operations. Their current ratio has been decreasing over the years indicating lower liquidity levels although they do meet their short-term financial goals. The decrease of working capital in 2019 indicates challenges in meeting their short-term financials meaning their liabilities exceed their assets. They have a negative total debt-to-assets ratio in all three years, which suggests that assets exceed debt. This is likely because they focus on investing in content instead of debt financing. Their total debt-to-equity ratio has been decreasing over the years, indicating a reduction in the proportion of debt relative to equity financing.
Gross Profit Margin 2019
2018
2017
($1,866.9/$20,156.4) *100%
($1,211.2/$15,794.3) *100%
($558.9/$11,692.7) *100%
9.26%
7.67%
4.78%
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Related Questions
H3
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NIVEA Masterbrand Campaign Competition 2022 Organisation: Beiersdorf Consumer Products (Pty) Ltd Contest Name: NIVEA Masterbrand Campaign Competition 2022 Applicable For: South African Citizens & Permanent Residents Only Last Date: 31st May 2022 Website: https://www.nivea.co.za/about-us/terms-andconditions 1 What is NIVEA Masterbrand Campaign Competition? 2 Eligibility 3How to Participate in The NIVEA Masterbrand Campaign? 4 Prizes of NIVEA Masterbrand Campaign Competition 5Winners Announcement 6What is the Last Date of NIVEA Masterbrand Campaign? What is NIVEA Masterbrand Campaign Competition? NIVEA Masterbrand Campaign Competition is organised by Beiersdorf Consumer Products (Pty) Ltd. The Competition is open to South African citizens and permanent residents only. Participate and stand a chance to win your share of R300 000.The Competition is open from 21st March 2022 and ends at 12am, midnight on 31st May 2022. Eligibility The Competition is open to South African citizens and…
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Dream Team Bed and Breakfast & Concierge Service is a new business that is starting in Jamaica by six individuals. the currency to be used at this business is US dollars.
1. Based on the business above provide the following information for the six founders of the business.
a. A Competitor Analysis - stating Competitor’s market shares, Competitor’s services, and Competitor’s strategies within the same location.
b. Loan and Implementation Plan - Amount requested, Purpose and uses of funds, Repayment schedule, and Timetable for implementing plan and launching the business.
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MCQ, with explanation
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X
EU
THITE
888
8 #11 11
€
All answers are equally weighted.
Pri
Ter
a) At optimal solution:
21 = 5
31= 0
X
X
Slack at Plant 2 = 0
Slack at Plant 1 = 480
Slack at Plant 3 = 0
*12=
Maximum Profit = $
X22
132
x units
units
units
0
b) At optimal solution, how much unused capacity is available at each Plant?
Question Help: Message instructor
Submit Question
13 =
123
A
233
Enter an integer or decimal number [more]
0
11
0
180
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A2 Assignment
Lamar F Triplett
Hawaii Pacific University
MKTG 6001
Professor Ji Mi Park
Jan 18, 2023
From a marketing standpoint:
Does T-mobile have any Third-party or in-house marketplace?
What are T-Mobile's Main challenges of selling via a third-party marketplace?
what are T-Mobile's Benefits of selling via a third-party marketplace?
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Please write an introductory paragraph for the following information provided in the pictures attached.
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QUESTION 3
Another solution for antibiotic resistanceis the development of new drugs that defeat resistant bacteria. Such research and development has a high fixed cost and can only be undertaken in industries with high market concentration where firms have significant monopoly power,like the pharmaceutical industry. Examine thisindustry using the theory and models of industry structure. Should government be worried about any aspect of how an industry with this market structure will perform?
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Subject: Strategic Information Systems for Business and Enterprise
Q) HARDA Limited employs 650 workers in ten different departments. These workers work in various capacities, including the manufacturing workers, technician, and janitorial workers. Each department has a supervisor who is responsible for supervising departmental activities. In addition to supervising operations, the supervisors of the departments are responsible for recruiting, hiring, and firing workers within their areas of responsibility. The organization attracts casual labour and experiences a 20 to 30 per cent turnover rate in employees per year.
Employees clock on and off the job each day to record their attendance on time cards. Each department has its clock machine located in an unattended room away from the main production area. Each week, the supervisors gather the time cards, review them for accuracy, and sign and submit them to the payroll department for processing. Besides, the supervisors submit personnel…
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question3
You are a consultant to a small size company engaged in Halal foods.The company is interested to expand its business to the middle East-Dubai.Prepare a business report focusing on the business potential.Also,give advice on the entry mode and external risks if the decision is made to do business in the middle East.
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MSC Global Shipping Company
Tax Rate
COMPARITIVE INCOME STATEMENT
30%
for years ended 31 December
2021
Increased by 3/4%
2022
Revenues and gains
*Sales revenue
179,000
75%
313,250
*Interest revenue
414,000
75%
724,500
*Investment Income
48,100
75%
84,175
*Other revenue
106,730
75%
186,778
Total revenue and gains
$747,830
$1,308,703
Expenses and losses
Decreased by 1/2%
**Cost of goods sold
450,000
50%
225,000
**Selling and admin administrative
31,540
50%
15,770
***Computer (operating)
75,000
50%
37,500
**Depreciation
36,500
50%
18,250
**Interest expense
39,000
50%
19,500
Total expenses and losses
$ 632,040
$316,020
Income before taxes
115,790
992,683
Income tax expense (30%)
34,737
297,805
Net…
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4.3
Briefly describe the term circular flow
(2)
4.4
Explain the role of the factor market in the circular flow?
Discuss the interaction between household and firms in the
economy (2x2)
4.5
(4)
QUESTION 5:
Study the graph below and answer the questions that follow.
RAND TUMBLES TO 3-WEEK LOw. STOCKS FALL AS
EARNINGS DISAPPOINT
At 1600 GMT the rand was 2.2% weaker at R16.91 per dollar, its weakest since Jul
Source : https://www.moneyweb.co.za/news-fast-news/rand-tumbles-to-3-week-I
stocks-fall-as-earnings-disappoint/
5.1
Identify the market above
5.2
List any type of notes used by South Africa Reserve Bank
5.3
Briefly describe the term market.
GAUTENG PROVINCE
© Gauteng Department of Education
URKO SUTH CA
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Mangement
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Question: How can businesses effectively navigate and leverage the various components of the business environment to gain a competitive advantage in today's rapidly changing marketplace?
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Assume you are conducting a qualitative research to identify the challenges of a sector. What will beyour: (150 – 200 Words)
Qualitative research purpose
Research approach
Sampling Frame
Sampling technique
Justification for that specific selected sampling technique
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13:12
* l 76%i
Pradeep Pant 3 Oct
to me, mustafausmani12 v
Hi Shruti & Mestafa
1) Identify how big is the compliance market. Research
whats the global market size and the growth expected
2) Which areas in compliance are growing
3) Check companies which are providing compliance and
which industries they are catering to (Pick 7 to 8 companies
each)
Crypto
Digital
Exchanges Barking
Enterprise Gaming & High Risk
Barking Cambling Corporates haurance Investments Legal
Lending
Payment Technology Ports
Maritime
& Wallet
4) What services are they providing
Entity
Cargo
Environemnt,
Vessel
Social
Governance
KYC
Risk
Sscrening Screening
Screening
5) Your conclusion - how companies are identifying their
market 2) What drives differentiation - Technology, service,
product, etc
Hope this provides you a learning platform.
Regards
Pradeep
Pradeep Pant 7 Oct
to me v
FYI
II
...
...
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Walt Disney Co. belongs to the---------------- stock sector.
Communication Services
Consumer Staple
Real Estate
consumer Discretionary
information Technology
Question 7
Match the stock with its stock sector.
DuPont De Nemours Inc.
Exxon Mobil Corp.
Nike Inc.
Real Estate
Consumer Discretionary
Utilitarian
Material
Energy
Question 8 Utilities, Consumer Staples, Financials, Communication Service Consumer Discretionary.
Match the stock with its stock sector
Public Service Enterprise Group Inc.
Coca-Cola Co.
AT&T Inc.
Question 9pts
Companies within the Material sector tend to either be involved directly in the production of capital goods like aircraft, electrical equipment, industrial machinery and the like or the provision of transportation services and infrastructure.
Group of answer choices
True
False
Question 10 pts
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26
19. You are the manager in charge of global operations at BankGlobal-a large com-
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recently received a call from a colleague in charge of foreign operations, and she
indicated that her unit would lose $8 million if the U.S. advertising campaign were
launched. Your goal is to maximize BankGlobal's value. Should you launch the new
campaign? Explain. (LOI, LO6, L07)
Financial Impact on U.S. Operations
Total Revenues
Variable Cost
TV Airtime
Ad development labor
Total variable costs
Direct Fixed Cost
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Total direct fixed cost
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Total indirect fixed cost
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a. False
b. True
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A. Company Y will respond after a long delay as the nutrition supplement industry is a slow-cycle industry.
B. As the market leader, Company Y has little to fear from an attack by Company X and will not expend organizational slack ana major response.
C. Company Y will respond aggressively because of the high multimarket contact between both companies.
D. Company Y will not respond aggressively since this is a strategic move and not a tactical action.
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Q6
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Topic:
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2.china aerospace
3.Achivements in china economy
4.Modern town
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