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Essay On Netflix

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Introduction Netflix is a successful company providing in home DVD and streaming movie rentals for a flat monthly fee. The company has experienced success and failures in their daily operations as a result of internal and external company factors that are the key in determining in the success of any operation. The company has been competitive in the industry by adopting product differentiation strategies making them a more diverse and accessible business (Gada, K. 2013). They initiated a delivery services that ensured the subscribers ability to access to movies as fast as possible. Through the volume of subscribers, the company has received numerous peer reviews and comments that enabled the company to increase sales and customer satisfaction. Firm Analysis Netflix is an online company with corporate headquarters in Los Gatos, California. The company’s primary business is online rental services in the entertainment and film industry (Noren, E. 2013). Netflix’s entertainment and film business service span various software products and services. Between these, DVD and streaming movies, television shows and original series (Gada, K. 2013). As a startup, Netflix faced some disappointing results in regards to its performance, the innovative company, however, continued to modify their strategy while identifying and exploiting any new opportunities that were presented (Noren, E. 2013). This was when the company designed and developed a website that saw it host millions of subscribers making it rake in huge profits. Netflix has a very unique business model when it comes to value chain. Operations play a central part where most of the functions occur including sales and distribution (Noren, E. 2013). Netflix website is the central part wh... ... middle of paper ... ...s to focus on gains from the internet TV status both internationally and within U.S. by focusing on internet streaming services and especially expanding and producing its own original series (Soper, T. 2013). This strategy will slowly phase out its weak performing physical media delivery service and keep Netflix ahead of competition (Stelter, B. 2013). Overall, the key issue for Netflix is to build a sustainable competitive advantage and become a market leader in the highly competitive rental TV and movie market (Rottgers, J. 2013). This is a market with a high degree of rivalry and threat of substitutes where both buyer and suppliers wield significant power. Netflix will continue achieve a sustainable advantage by differentiating themselves through customer service, growing their library of internet content and investing in innovation with suppliers and technology.
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