Netflix An Online Video Rental Service Provider

3477 Words Oct 10th, 2014 14 Pages
Netflix is an online video rental service provider, which unlike traditional companies deliver DVDs by mail. It has used both resources of internet and traditional post office. The structure of the company stands on its strong system of Supply Chain Management (SCM) and its integrated part of Customer Relationship Management (CRM). Customer relationship management system reinforces and assists to maintain optimum level of inventory. As the company is online one, it is very difficult to manage the inventory. So it has developed such a SCM model, which not only helps to achieve the optimum level of inventory, but it also performs various related task like defining the shortest possible route to deliver the order and to reduce the cost by maintaining optimum inventory and hence minimizing the opportunity cost.
Around three years ago, Netflix felt the adverse impact of technological advancement in video streaming. Online video streaming in the presence of smartphone and tablets, people find it much convenient to watch movies on their devices. It was a fatal blow to Netflix DVD rental service. Netflix reinvented its core operational strategies and entered video streaming by making backward integration. Since then, the company is on the path of success.

Introduction
The rapid growth of Technological advancement poses great challenges for successful companies. It becomes difficult to remain successful while correctly responding to the demands of new generations. For a…
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