Case Study Netflex Essay

633 WordsOct 8, 20123 Pages
Chapter Case Study Explain Netflix’s marketing strategy? Can it sustain its competitive advantage? Why or why not? Netflix strategy has no brick and mortar stores, big stores with a variety between 300 to 4000 movies in stock. Netflix relies on the internet for customers’ orders and mail system for the delivery. The company does not have late fees, fluctuating monthly fees, predetermined rental periods, instead has a flat fee. Netflix, let customers view unlimited streaming of movies and TV shows for a monthly fee and has also developed platforms to deliver its titles to Nintendo Wii, Xbox 360, PlayStation 3, and TiVo. Netflix also supports decks from Panasonic, Insignia, and Seagate, and a number of Android and apple mobile devices…show more content…
Lack of updating movie content. Reliance on studio agreement to secure content (movies). Opportunities Growing demand for online video streaming. Strategic partnerships with third-party businesses (Nintendo, Microsoft) Growing demand for game rentals Growth in portable media play Total integration of Netflix platform across mobile devices Threats Must absorb shipping costs which negatively affects operating margins Technology is ever changing and Netflix must consistently improve method of delivery Other companies offer video-game rental Piracy Video on Demand (VOD) Suppliers shifting to competition-Must absorb shipping costs which negatively affects operating margins Technology is ever changing and Netflix must consistently improve method of delivery. Other companies offer video-game rental Piracy Video on Demand (VOD) Suppliers shifting to competition Netflix should pressure opportunities like the online stream with customers, reassuring to customers more efficient and faster connections, unveil a plan with movie producers to reduce the 28 day window to release movies. Although, target those customers who might pay higher monthly fees and end up with the fewer films. What is the best way for Netflix to grow its business? Justify your answer. Netflix should expand internationally to increase their clientele. It only has 3.6 million international subscribers, generating revenue of $108 million through the

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