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Read the case and assignment, and answer the question. don't find any resource from Internet or other book - Admission/Application Essay Example

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Though the revenue and net income are rising, the net profit margin indicates a different trend (as shown in the graph below). The trend will be used to suggest recommendations that…
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Download file to see previous pages Netflix opted to implement a strategy whereby the customers had the option of either receiving unlimited DVDs at $7.99 or receiving unlimited streaming at $7.99. The rates for receiving both options increased by 60%, whereby those who paid $9.99 would pay $15.89 under the new strategy (Patton, p. 141). The effects of the strategy are visible from the trend indicated by the net profit margin (shown above).
Currently, Netflix and Redbox are dominating the DVD rental section of the industry (Patton, p. 148). However, it is projected that the future of the movie rental industry will settle on internet streaming and the VOD segments. The competitive intensity will shift from the DVD rental section to the unlimited internet streaming. The key success factors that Netflix need to adopt is to have a convenient retail location, obtain expertise in the internet segment, and have a network of wholesalers. The key success factors revolve around the spheres of transiting to the unlimited internet segment. With the emerging internet applications, customers would prefer to adopt online techniques to watch movies. Netflix ought to modify its current strategy to enhance the customer preferences for differentiated commodities.
Netflix should consider the DVD rental segment as a ‘stronghold’. It should focus on the unlimited internet streaming, where the main battle exists in the market place. Online technology is the convenient platform for movie rentals. Netflix ought to adopt effective strategies to compete with the numerous ambitious rivals that are emerging in the movie rental market place. In 2012, Netflix was the apparent leader in the internet streaming option. It had registered over 22 million subscribers who watched movies through an internet-connected appliance.
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