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Netflix - Case Study Example

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It was launched at the time when the fascination for watching movies at home through DVDs or by lesser subscriptions was at a peak (Thompson 280). Netflix had become a market leader in this field and the strategies that were adopted…
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Download file to see previous pages Apart from this, there was also a scheme whereby any new subscriber would be allowed access t o its movie library on one month trial basis. After this the subscriber is automatically taken as a subscriber unless he cancels the subscription personally (Thompson 282).
2. Marketing tie ups- Netflix had entered into a deal with a company named Startz Entertainment and made tie ups with entertainment content providers such as Universal Studios, Twentieth Century Fox, Indie films etc that gave the subscribers an access to several new movies at the same amount they paid (Thompson 284). This move was taken to increase the popularity of the company.
3. Quick delivery to subscribers- Netflix made it a point to deliver the ordered DVDs to the subscribers within one business day after the order is placed (Thompson 286). For this, the company had formed several regional centers that helped to deliver the DVDs in a very short time. This was a strategy to increase its popularity amongst the customers.
1. The company has a fast mover delivery system on its online subscriptions. This has been done by setting regional bases in several areas. Also, by placing orders online the company made watching movies cheaper (Thompson 286).
There are fewer threats from new entry into the market place and Netflix enjoyed a market leader position there. Making movie steaming and renting cheaper involves huge money and this would not be easy for any new company in a short time.
(e) Degree of rivalry- the degree of rivalry can be strong as there are fewer companies operating in the market. Rivalry can also arise from other sources such as the cable and satellite companies (Thompson 281).
Strengths – the strengths of the company lie on its fast delivery and huge collection of movies. The company had also got has a huge customer satisfaction as it had around 16.3 million subscribers (Thompson 287) and strong brand recognition.
Weakness – the company relies on fast delivery of ...Download file to see next pagesRead More
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