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Netflix - Research Paper Example

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Within the United States the company also offers DVD-by-mail service however it views this service as a fading differentiator to their streaming success (“Netflix, Inc. Form 10-K,” 2012)…
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Netflix

Download file to see previous pages... programming distributors, direct broadcast satellite providers and telecommunication providers; (3) entertainment video retailers; and (4) DVD rental outlets and kiosk services (“Netflix, Inc. Form 10-K,” 2012). According to Aaker (2007) market analysis can be viewed at through seven dimensions: market size, market growth rate, market profitability, industry cost structure, distribution channels, market trends and key success factors.
According to Datamonitor (2012) the global movies and entertainment market generated total revenues of $109.4 billion in 2009 which represented a 0.2% growth rate from 2005-2009. This industry spans multiple sectors and is highly dynamic. The major growth driver for this industry is the rapid evolution of platforms and delivery methods epitomized by smartphones, tablets and the social Web.
Analyzing an organization’s value chain makes it easier to identify where value is added and/or where the organization could develop a cost advantage. Online businesses such as Netflix benefit from the Internet’s ability to lower the costs in much of their value chain especially in inbound and outbound logistics, operations and distribution channel. However, in order to develop competitive advantage online companies must invest, innovate and grow competencies in technology, infrastructure and service. Also, these companies have to operate on low-cost models given the market’s expectation for lower products prices.
Plunkett Research (2012) identified increased consumer demand for more control over what they read, listen to or watch as the premier factor that will drive changes in this market in the near future. According to them, issues of control will be manifested through portability, pricing and delayed viewing or listening. Portability refers to the ability to view and share content across multiple platforms such as iPads, Android smartphones, digital TV and desktop operating systems. Pricing for content is important given ...Download file to see next pagesRead More
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