Customer Relationship Management and Netflix

2868 Words Mar 25th, 2013 12 Pages
Different system in Netflix

Yilin Zhou
11040004
Director
Professor Yehia Mortagy
03.05.2013

Abstract

First part I will introduce the background of Netflix and what are they mainly business. Following is different system application in Netflix. First one is Porter`s models analysis. This framework for industry analysis and business strategy development formed can help us see today`s Netflix. Then is Netflix Prize that was a competition to help Netflix got better system database. I also write E-business development that clearly explains Netflix Operation Model and how it works. Netflix`s problem is a important part that show what Netflix need improve now and how system help them make a better decision. MSRP and ERP system also
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Netflix choose cost leadership strategy be their generic strategy. They offer a very particular service to their costumers but also ask for frequent renters become a low cost instead to a traditional video rental shop. Netflix`s distribution channels very efficient and famous on their innovation. Amazon has a cost leadership strategy and they have very competitive prices. So Amazon would be a big competitor to Netflix. Also they have a focus strategy different from Netflix. The Porter’s model five forces analysis is a framework for industry analysis and business strategy development, customers’ competitive environment, competitive situation of an industry based on the different factors together.
In the case report of Netflix, first for the threat of new entrants, Entry this area have capital requirements and content costs money; new entrants have some superiority like low barrier and high technology. But at Netflix much of the process of opening return envelopes and filling outgoing mailers with DVDs was still performed manually. Secondly, the bargaining power of suppliers Content is an important Input in Netflix. For example Time Warner, CBS. Thirdly is bargaining power of buyers. Nowadays, there have a lot of cheaper and convenience way to watch movie and TV. Netflix Revenue is majority customer sales based, so the customers not as loyal as before. Netflix have many Competitors like Apple TV, Amazon on Demand, Verizon. In the meanwhile,