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Netflix's - Case Study Example

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This strategy will be applied, based upon the specific requirements of the given case. Additionally, opportunities as well as challenges that…
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Download file to see previous pages As mentioned above, Netflix can capitalize on the software features, provided by Amazon, by providing tailored services to its customers. However, due to its dependability on Amazon for delivering service features, it is considered that Netflix cannot make vital decisions independently. The software application used by Netflix has created certain values for the company in its domestic market i.e. the United States. However, it has created opportunities for its competitors such as such eBay and Intel to take complete advantage of this application. Netflix has a huge opportunity to expand the market share through effective financial operations, but its share price has been declining significantly. Netflix’s stock has been trading at a lower rate, but the company can increase its stock price value through productive measures. Customer value creation is a potential opportunity for Netflix to increase its market existence through Amazon Web Services, but this particular aspect has adversely affected its managerial functions, due to excessive usage of web servers. Netflix through its relationship with Amazon has increased opportunities to upgrade its cloud services, whereas the decision making process has been problematic to a certain extent. The overall size of its domestic market is relatively smaller due to increased competition, although it has created opportunities for Netflix to expand its subscriber’s base. The average rate of return on services and contents provided by the company is continuously declining. Nonetheless, Netflix has a huge opportunity to replicate its business model and enter in overseas market for greater effectively.
Understanding market behavior is quite important for each and every company to sustain in the market for a long term. Thus, it is suggested that marketing managers of Netflix through performing a thorough market research might understand the market behavior as well as customers’ ...Download file to see next pagesRead More
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