Car Rental Essay

Case 11- Netflix Netflix’s entrance in to the movie rental industry during the early nineties gave them a perfect position to capture the market. At the time of Netflix’s founding many customers of normal video renting stores where becoming frustrated with the lack of service and late fees these video rental stores where providing. Netflix’s original strategy of targeting the early technology users helped them gain a lead when the

PROMOTION 12 RECOMMANDATION AND CONCLUSION 13 REFERENCES 16 APPENDICES 20 Appendix I: Porter’s 5 forces 20 Appendix II: PESTLE analysis 24 Appendix III: Blockbuster SWOT analysis 28 EXECUTIVE SUMMARY Blockbuster is a provider of rental movie and game entertainment with a worldwide presence. At the beginning the company was considered leader of its industry due to its capacity to customize a store to its neighborhood,

home video player. The initial adoption of home video technology in the United States was slow, due to high initial price tags. As prices dropped and the number of households owning home video players increased, video rental stores began to proliferate across the United States. Rental stores innovated the home video market offering customers a less expensive alternative to consuming media, and in the beginning faced no technological or competitive threats in the marketplace. In 1985, David Cook opened

Companies always reshape their product to grow or to obtain their goal. Now multiple companies are buying one another to get a better reach of their target market. The first article from Advertising Age states that Hulu will stop offering TV shows for free. That is quite daunting for the users you range from all ages especially millennials who are the main users. The streaming service is discarding its free platform that provided streaming viewers with a library of hundreds of movies, TV shows,

to promote Netflix in the Blockbuster Video stores, and Netflix would run the bran of Blockbuster online. He ended up getting laughed at and had to leave. Antioco had no idea of what offer he had just turned down. Blockbuster was controlling the rental industry market when Netflix was trying to make a deal. The team worked so hard to create Blockbuster, and it was scary to just hand it over to a company online. No one knew it would be the future. Blockbuster

Summary The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes. Assignment Questions 1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. Threat of New Competition:

Video rental industry Definition: Branch of the entertainment industry that engages in renting prerecorded video material for home and personal viewing Significance: After starting in 1979 with a single retail outlet in Los Angeles, the video rental industry boomed during the 1980’s and became a fixture in consumers’ spending during the 1990’s, grossing an average of $1 billion yearly. With the arrival of digital versatile discs (DVDs) and the Internet during the 1990’s, the industry experienced

Blu-ray, and video game rental stores currently under Chapter 11 bankruptcy. As of January 3, 2010, there were over 5000 Blockbuster stores in the U.S. and 17 countries worldwide. It is headquartered in the Renaissance Tower in Downtown Dallas, Texas.[1] Because of competition from other video rental companies like Netflix, Blockbuster has seen significant revenue losses. The company filed for bankruptcy on September 23, 2010. Strengths * Lead market share of online rentals * Low fixed costs *

Netflix, Inc. “Netflix, Inc. is the world's largest online movie rental service, with more than 10 million subscribers (Netflix Media Center, 2009).” Netflix exhibits dominant economic characteristics in the online movie rental business. They enjoy strong market size and growth rate when compared to rivalry competition. The number of rivalries are increasing, and the market remains dominated by only a few sizeable rivalries like Blockbuster Video, Wal-Mart, Walt Disney Movies and Movielink’s

Netflix Case Study The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in