Ebusiness strategy of netflix - Term Paper Example

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c- Use relevant theory to explain how the Internet has impacted the competitive strategies available to a firm, and analyze how successful (or not) your particular firm has been in meeting the challenges posed by its e-Business activities.
Competitive strategies are one of the…
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Ebusiness strategy of netflix
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Download file to see previous pages The internet has played a major role in shaping the businesses of today. Whether it is related to managing inventory, past data, customer data or complex functions like smart reimbursement of inventory levels, identifying consumer patterns or trends etc., the internet plays a significant role in the operations and management of almost every business of today. It has become so entrenched in today’s world that is imperative for businesses to maintain an online presence as well to interact with customers, spread product awareness and showcase their offerings. According to Michael E. Porter, the internet is not a new technology for today’s world. It has been there for more than a decade now and organizations should be smart enough to learn from the risks that can be associated with integrating business with the internet. Now is the age of accepting the internet as an ‘enabling technology’ that can help businesses cut down on their costs significantly, position their brand better and create a more competitive marketplace (Porter, 2001). This too is only possible if a strategically drafted competitive strategy is in place to attract the target market.
Netflix is targeted towards dominating the Internet TV category. However, the internet does not bind the competitors as such and with the shift of its DVD business towards live streaming, the challenge does not remain in maintaining the best logistics system rather, it has shifted to maintaining relationships with the video providers. Netflix’s main competitor, Blockbuster, closed down recently but this is due to restructuring and not bankruptcy (Indiviglio, 2010). They are expected to come back into the market with bigger and better services that Netflix cannot ascertain completely at this point. Netflix accepts that the DVD rental is not feasible in the long run and has to be let go of at some point in time. However, it managed to aggravate a significant portion of its target ...Download file to see next pagesRead More
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