Netflix 's Core Competency : Netflix

757 Words Sep 27th, 2015 4 Pages
Netflix’s core competency is to deliver online and mail order subscription service to the home. According to Michael Napoli (2014), the company’s core strategy is to grow its streaming subscription business domestically and internationally. His study indicates, since the introduction of this service, Netflix has developed an ecosystem for use on various Internet-connected devices, including televisions, computers, and mobile devices. It has also licensed an increasing amount of content for the streaming platform. In addition, Netflix looks to further increase the amount of content here, and improve the user experience in other ways, as well (Napoli, 2014). One of Netflix’s strength is its competitive pricing and hybrid selection. According to Jim Mueller (2010), for as little as $8.99 a month, people can watch as many movies as they want, either streaming or on DVDs. In addition, for just a bit more, a higher number of DVDs can be out at a time, giving users more flexibility. Less expensive than paying for cable movie channels, while giving more selection (Mueller, 2010). Even though Netflix did have DVD services, it only prove to hurt the company in the long-run. According to Napoli (2014), the company’s domestic DVD-by-mail rental operation has declined in recent years, as streaming has become increasingly important. His studies indicate prior to mid-2011, the streaming and DVD-by-mail operations were combined and members could receive both offerings under one hybrid…
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