Netflix Is The World 's Leading Internet Television Network

1269 Words6 Pages
Alex Lee
As mentioned by the Netflix CEO, Reed Hastings, the core of the company’s business is providing DVD by mail and streaming. Netflix incorporation is in the business of providing on-demand internet streaming entertainment and providing DVD media by mail to many parts of the world. Netflix is the world’s leading internet television network with fifty million members among forty countries such as North America, South America, United Kingdom, Finland, Ireland, Norway, Netherlands, Denmark, and Belgium. This American company started in 1997 with its headquarters based in Los Gatos, California. Subscribers of Netflix are given the ability to experience billions of hours of TV shows and movies per month. The members are allowed to watch
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Businesses that have few powerful buyers are not often able to dictate the terms and conditions of a business. However in Netflix’s scenario, there are many powerful buyers which enforces the company’s terms. The buyers are so powerful that the Netflix CEO had to respond to the world with a written apology. The New Market entrants include Amazon Prime, HBO Go, Hulu Plus, and Vudu. These companies were attracted to the Internet streaming entertainment as being a profitable industry. However, Netflix maintains its land by its originality i.e. being the first large scale operation of its kind. Netflix also holds the most content making survival for the future companies very difficult. Supplier power is a measure of how easy it is for a company to raise prices. As far as supplier power goes, Netflix has a good brand reputation, geographical coverage, and high quality product and service with their customers than the competitors. In terms of substitute products, Netflix has a high quality product that was developed as a result of high level technology compared to the competition. Strong substitute products that exist in the market will increase the likelihood that customers would switch to alternatives if prices rise. The impact of substitutes will reduce the power of suppliers and the market attractiveness.
Among all else, Netflix continues to be a force to be reckoned with in the online streaming industry compared to its competitors. Netflix’s

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