Netflix in 2012 - Case Study Example

The five forces model has been rated in the table as shown. Netflix Company currently experiences medium entry barriers. The company does not experience much of the entry barriers. However, the company receives low cost of switching powers concerning the capital requirements thus enhancing financial stability. Besides, Netflix seems to be one of the leading movie rental companies with decline in the identity and loyalty to subscription (Thompson 140). The organizational returns are mainly linked to customers’ returns that have bargaining power in terms of the quantity of order, while most customers are not willing to make streams as before.

The above is because most customers have found alternatives to watching movies. The organization experiences different types of competitors from all corners of the world including Amazon and blockbusters who deal in similar products. As in the case above, Netflix needs to redefine the strategy and offer the best video on demand based on customers experience (Thompson 147). The company experience high level of competitiveness splitting along two main service provisions, pay TV distributors and cash technological companies.

For instance, the organization experiences Apple cash balance leading to a decline in sales from 11.84 to $77.37 in Nov 2011. It has also been facilitated by low switching cost of consumers (Thompson 140). The organization experiences high bargaining power of suppliers with the quality in content-based as part of the organizational key input. Otherwise, there is no specific substitute for movie contents. Therefore, suppliers are limited to high-quality contents (Thompson 140). As from the year 2000, the movie industry has experienced quite a big mode of transition from technology to electronics and multiple consumer opportunities.

For instance, current