Business Model Analysis: Sflix's Product And Service Offerings

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Target customer is pertaining to whom the product or service is marketed to and sold. (Wharton, 2006) Much of a company’s demand research goes into studying who is interested in and purchasing their product or service. Consumer groups are constantly being identified so that new markets can be breached that haven’t yet been accessed. Age, gender, and ethnicity are all major identifiers for subsets of consumers to be studied and marketed to. (Rigby, Christenson, & Johnson, 2002) Finding a target consumer group can result in a new product line, sales ads and audience which in turn can drastically change a company’s profit as well as reputation. Technological Levers of Change Far more known are the next three levers of change. The technological levers have more to do with traditional notions of innovation and involve more product and technology based revolutions as opposed to operation and business model analysis. (Wharton, 2006) Product and Service Offerings A product and service offering is the invention in innovation. (Wharton, 2006) This comes down to the actual product being sold, how it operates, what the product consists of, and what functions it performs. This can consist of an improvement on a product which already exists or an …show more content…

The supply chain of the company was totally altered within a relatively short two years. Initially the supply chain operated based on a combination of software and physical goods. (Teece, 2010) The consumer could organize their preferred movies or “queue” online and when they returned their previous rentals, they would receive the next movies on their “queue”. (Lusted, 2013) This involved the physical movement of DVDs through mail from distribution hubs. When Netflix moved towards a streaming based business system their entire supply chain was altered and required much more emphasis and workers in the information technologies center. (Lusted,

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