Netflix: Entering a Brave New World

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Chapter 4: "Netflix: Entering a Brave New World" Q 1. Some of Netflix’s capabilities and core competencies are mentioned in the case. Go to the firm’s Web site ( and use other information sources as well to see if you can identify additional capabilities and core competencies. Do you think the core competencies mentioned in the case and/or the ones you found are valuable, rare, difficult to imitate, and nonsubstitutable and as such, are also competitive advantages? Why or why not? Answer The core competencies of Netflix lie in primarily its model customer-care and customer-service, which entails the fact that Netflix is well aware and knowledgeable of its customer and his preferences. Another core…show more content…
This is primarily because there is no product differentiation in the market. Additionally, Netflix would then lose its flagship brand essence the supportive roles played by these two integral competencies of the company. The well-developed IT management allowed Netflix to move from DVD only to DVD and streaming, allowing the tap into the streaming market and a chance for the company to expand business. Q2: What do you believe are the primary competitive challenges facing Netflix today? What capabilities and core competencies does the firm require to successfully deal with those challenges? Answer 2 Netflix finds its competition and strategic challenges against big names in the market –Google, Apple and Amazon to name a few (Roberts & Zahay, 2012). The challenge for Netflix lies in maintaining the innovative streak, which will add creativity and youth to its brand image and the brand itself. This innovative streak has to be continual and has to match the demands and preferences of the customers in their taste and liking. The brand and the company cannot afford to remain stagnant and rigid in the ever changing and demanding market place. The core competency that Netflix will have to focus on to meet this challenge is to develop and train its human resource. Effective and efficient human resource management will allow the company to tap into present and potential customers, as well as, allow the company to serve them appropriately.

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