Netflix Case Analysis - 3443 Words

NETFLIX By Roxanne Meyer Netflix is an American provider and the world’s leading internet subscription service of on-demand streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and Ireland and flat rate DVD-by-mail in the United States. Netflix members can instantly watch unlimited films and TV episodes streamed over the internet to more than 700 devices for about $7.99 a month. With regards to increasing the influence of the Netflix brand, expansion into the video game industry could be an option, however various factors such as competitors, viability and sustainability of the company as a whole need to be further analyzed in order to assess whether this proposal is feasible. Competitor†¦show more content†¦* Very competitive prices. For as little as $7.99 a month, people can watch as many movies as they want, either streaming or on DVDs. For just a bit more, a higher number of DVDs can be taken out at a time, giving users more flexibility. This form of movie renting is less expensive than paying for cable movie channels, while giving customers more selection. Weaknesses * Pricing power. The studios can still dictate some serious terms to Netflix, limiting when various movies become available (the infamous 28-day window for instance) or for however long they desire. * Difficulties in Inventory Control Inventory control is very difficult in Netflix because DVDs are sent to customers through mail, some DVDs might arrive late and some might be broken or lost during delivery. * Loss of customers due to delays It is difficult to get the actual numbers or DVDs that might be available due to customers right to keep the videos as long as they want. This might also cause Netflix to lose some customers if the customers have to wait too long for their favorite movie or a new release. * Bottlenecks can result Although Netflix allow unlimited DVD rentals, the customer has to return at least one movie to get anotherShow MoreRelatedNetflix : Case Analysis : Netflix1087 Words   |  5 Pages1. SITUATION ANALYSIS Netflix was founded in 1997 by Reed Hastings and his fellow software executive Marc Randolph. Even though VHS was more popular than DVDs, Hasting guessed that the DVDs will get popular and this was an opportunity for them to win the market so they attempted a DVD-by-mail rent service which was an idea that Hastings got it from after paying a $40 late fee for Apollo 13 in 1997. This DVD-by-mail rent service without a subscription was not popular, so Netflix launched the subscriptionRead MoreNetflix Case Analysis2313 Words   |  10 PagesCase Analysis: Netflix.com, Inc k JAVK Consulting Company 6/14/2011 600 Civic Center Dr Detroit, MI 48226 Dear Mr. Hastings, Our company JAVK Consulting has examined the Netflix customer model and looked into the company’s five year financial future. We have analyzed Netflix with a scope of entering a rocky internet based company marketplace and seeing success in the future. The company currently is pumping lots of money into marketing strategy in order to growthRead MoreNetflix Case Analysis1205 Words   |  5 Pagespaper will analyze Arthur Thompson’s case study titled â€Å"Competition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership.† I will address trends affecting the movie rental industry, analyze the competitive industry environment, and discuss the use of both the SWOT and balanced scorecard to assess Netflix’s overall strategy. Trends Affecting The Movie Rental Industry I chose the following areas as relevant in my analysis of the attractiveness of the industry: Read MoreNetflix Case Analysis3411 Words   |  14 PagesNetflix Case Analysis Netflix is an American provider and the worlds leading internet subscription service of on-demand streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and Ireland and flat rate DVD-by-mail in the United States. Netflix members can instantly watch unlimited films and TV episodes streamed over the internet to more than 700 devices for about $7.99 a month. With regards to increasing the influence of the Netflix brand, expansion intoRead MoreCase Analysis Netflix1969 Words   |  8 PagesNetflix Case Analysis 1. INTRODUCTION Netflix has been successful introducing a new business model for the DVD rent industry. The new model is base completely online, changing the way that price of the service has been settled before. The new business model is bases new pricing system in which customer neither pay late return fees, nor shipping fees. This business model have been so successful that other big player such as Blockbuster, and Wal-Mart start to copy the business model, which is a realRead MoreNetflix Case Analysis3116 Words   |  13 PagesNetflix Philip J. Brooks Business Policy Strategic Planning – BA 4910 Professor Dr. Jeffrey Walls November 25, 2006 GENERAL ENVIRONMENTAL ANALYSIS Netflix was founded in 1997 by Reed Hastings, founder and CEO. Prior to this, Hastings founded Pure Software in 1991 and led several acquisitions that allowed Pure Software to become one of the top 50 largest software companies in the world. In 1999, Hastings launched the online subscription service and led Netflix toRead MoreNetflix Case Analysis3347 Words   |  14 PagesReed Hastings created Netflix, an online video retailer. The concept was designed to offer subscribers an online library of DVDs from which they could rent, for a flat monthly fee, a prescribed number of movies at a time and exchange them at their leisure. Once finished with the DVDs, the customers would return them via the postal service and receive their next batch of selected movies. All this was accomplished with neither late fees nor shipping fees. The primary goal of Netflix was to provide itsRead MoreNetflix Case Analysis1752 Words   |  8 PagesNetflix was the first company to create an online DVD movie rental service. The service has created a new ‘movieÂ’ market niche which has secured them a competitive ‘first-moverÂ’ advantage in this new ‘high-techÂ’ venture. The popularity of the service has sparked the interest of market competitor Blockbuster who may become a growing threat to Netflix should they enter the online movie rental market (Perreault, 2004). Netflix was founded by Reed Hastings, Netflix was incorporated on August 29, 1997Read MoreBlockbuster Netflix Case Analysis1533 Words   |  7 PagesDEPARTMENT OF ACCOUNTANCY MEMORANDUM SUBJECT: Blockbuster/Netflix Case Analysis Introduction In this memorandum, I will analyze the competitive environment that Blockbuster and Netflix faced, state the key income statement and balance sheet accounts for each firm and use ratios (including DuPont model) to draw comparisons between the two firms in 2008. Competitive Environment Blockbuster is an American-based chain of VHS, DVD, Blu-Ray, and videoRead MoreNetflix Case Study Analysis1179 Words   |  5 PagesGROUP CASE: NETFLIX Group Number: 10 Section: 002 SUMMARY The video streaming industry has problems regarding differentiation, supplier power, buyer power. Netflix has the competitive advantage of providing an extensive collection of movies and TV shows to millions of people all around the world while curating the experience to each customer through its algorithm and customer service