Netflix Market Structure

As long as there are innovative strategies executed, Netflix will be equipped to handle fierce competition. Netflix’s success will depend on its product differentiation and content quality, provided with its innovation, high quality and performance delivery. The industry will move towards mass customer distribution and the profits can be achieved by more subscriptions. (Paramesh 2013). Distribution In order to be successful at an online market, Netflix must have an efficient distribution network that allows fast delivery of DVDs.

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.

S.W.O.T. Analysis Strengths: ? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead market share of online DVD rentals while competing with traditional brick and mortar rental stores.

Recently, Netflix h... ... middle of paper ... ...o maintain profitability and market share in the long-term it must align the Studios’ profit interests with its own. To accomplish this the first recommendation is for Netflix to vertically integrate with a studio. Vertical integration would reduce costs for both the Studio and Netflix by cutting out the transaction costs associated with negotiating licensing and distribution terms for streaming content. This would be especially beneficial to Netflix because their current streaming selection lacks diversity, depth and quality. A vertical integration would also benefit Studios in that they could replace obsolete DVD distribution channels with a brand name digital distributor.

Amazon had a business model that was posed to expand its strategy to include partnerships with established retailers who wanted to streamline their online capabilities. Under this model, Amazon acted as a logistics provider and helped such companies upgrade their online distribution systems. These 3rd party partnerships with large retailers would broaden Amazon’s service offerings and create allies with retailers ... ... middle of paper ... ...’s typically harder to be aware of how to be competitive and what growth demands are on the horizon. An alternative option available to Amazon.com is to provide customers with greater value for their money through utilizing a best cost provider strategy. Amazon has the information available to them.

This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity. Below illustrates how Netflix rank in other categories. Number 1 Number 2 Number 3 Number 4 Film Netflix Double Negative Real D Dreamworks Video YouTube Twitter Netflix FX Web Companies Twitter Google Zynga Netflix Learning Team A will describes and evaluate Netflix’s innovation strategy, the specific products offered to their members, and the benefits that the company brings to its customers and employees. To begin, innovation goes beyond an invention. It captures the opportunity for change, growth, and market leadership that allows leaps within the industry in multiple ways (Pearce & Robinson, 2011, p. 376).

Along with what Blockbuster has done to compete with their new competitors like Wal-Mart and Netflix. With the internet changing the way most profitable companies do business Blockbuster has to adapt and follow the new trends our generation. While studying this case, our group analyzed what Blockbuster's strengths and weakness are, combined with what opportunities they have to excel in the new way consumers watch movies and we established the threats that exist with new technology and competitors. Last our group has thought of some new idea's that could help them thrive in the future. The problem that this case states is, will Blockbuster make the right business plan choices to allow them to compete with the innovation of products and technology of distributing movie rentals.

Netflix Inc. Company Background Netflix Inc. incorporated in 1997 and made its first public offering in 2002. Netflix is an online movie rental service which provides its 3,000,000 subscribers access to over 40,000 DVD titles. Although Netflix stocks nearly every title available on DVD, it does not stock titles containing adult content. The Netflix program allows subscribers to rent as many DVD’s as they want, and keep them for as long as they want. Three DVD’s can be out at a time, as soon as one is returned the next DVD on the subscriber generated movie list is shipped out.

Other barriers we are facing while Cross-Border Online Movies Purchasing is the language issues. So at the end I must say this , we can provide the best Movie selling Website in the Region because we have to be honest on Delivery and payments , Product Quality , Product information , Customer Service should be in professional way. There is one Survey which will provide some of information about online Purchasing. Online Customer are more active as in home shoppers. Online Customer have more experience, they knows the internet very well and having a longer internet session.

However, the success in the movie rental industry is not solely determined the method of renting and technology. After investigating the movie rental industry and gathering a greater understanding of Redbox and their strategies, the recommendations for Redbox will conclude this case study. Discussion The Internet age brought about a newfound ease and convenience for gathering information and watching movies. The convenience of the Internet is just the beginning as Farhad Manjoo says, “where the movie-rental business is going and you will hear one thing: digital streaming. Amazon, Apple, Netflix, the cable companies, and many startups are gearing up to send every movie to your home on demand.” (Manjoo, 2009, pp.