The Netflix Financial Statement - Essay Example

The Netflix Financial Statement Answer 1 Financial Performance- Netflix 1 [Net14] Answer 2 There is no doubt about the fact that the business model of Netflix has made the company a market leader in the DVD rental market. The developing technologies that are considered complementary to services like videos on demand indicate that DVD is now an outdated technology. Netflix considers video on demand as nothing else but a way of extending their core business model and the company surely possesses some conceivable benefits in the video on demand market space. The company has succeeded to attract a large number of people and has a large distribution network. Netflix needs to develop some new business strategies in order to survive in this rapidly changing movie industry. The firm can emerge as a reputable provider of DVDs by maintaining its brand identity and differentiating itself from its competitors present in the market. Meanwhile, the streaming service of Netflix can be considered as a complementary service to the firm’s DVDs rental business in the coming years. Although the movie watching market or the video market is mature but the streaming market has not yet fully emerged. This means that Netflix cannot just rely on its strategies of the past but must try developing a hybrid strategy that will help in addressing the future market demands and customer’s expectations. An emerging market offers new companies an easy entrance pass. Therefore Netflix must make sure that all of its strategies should be focused around the new and emerging market practices. Answer 3 The differentiation strategy is where the company concentrates all of its efforts in developing a single product and then incorporating unique and different attributes for meeting the needs and addressing the demands of its customers. When a firm adds value and uniqueness to their products for attracting customer, it is likely that the customer will be willing to pay much higher price for such products and services. Same is the case with Netflix. The firm entered the online business and targeted the online renting of DVDs. This strategy can be achieved by Netflix by using the recently developed or the upcoming marketing technologies which have not been yet incorporated by other companies in their business. Netflix introduced an integrated search engine in its newly launched website enabling the customers to search and access the products of their choice. The management of Netflix must reflect ingenuity and talent while marketing their products by employing the already established and available supply chain technology and infrastructure. One of the infrastructure tools being used by Netflix is US’s Postal Service, for delivering the product. However there is a need of introducing the firm’s own delivery service for serving the customers better. Netflix is trying to effectively use its differentiation strategies for creating competitive advantage but still the firm needs to work hard to increase its market share. Netflix’s perceived performance should be high. The perceived performance of Netflix should not be confused with the customer’s expectations unless it is being met elsewhere in the DVD market at similar price. In such a case the performance of Netflix will be considered weak. This view is also considered while perceiving the firm’s reliability. Although one cannot ignore the fact that the registered complaints against Netflix’s service are quite few, which indicates the fact that its customers are satisfied by the package being provided by Netflix. However, it would take long until its competitors start providing the same package at lower rates. Therefore Netflix must continuously work to incorporate new strategies for meeting the future demands of the customers. Answer 4 Netflix must try to adapt to the continuously changing dynamism and avail new market opportunities in order to cater different markets. The firm must hire experts in the area of cross cultural management in order to ensure that the cross culture constituents are incorporated in its pursuit. The firm must try to avail the newer opportunities lying outside the current market of Netflix which is characterized by fairly different cultures. Netflix must also incorporate user friendly software that is compatible with the other products being offered by the firm in order to enhance the usability. There is a need for continuously incorporating the faire business practices if Netflix wants to increase its business share. The firm must also invest in technologies which restricts the unauthorized copying or illegal download of its products. The illegal use of the videos being offered by Netflix must also be blocked as they inversely affect the firm’s profits. Netflix must continuously evaluate the changing role of technology and its effect on company’s position. It should revise its plan based on the changes identified in order to incorporate new technologies in its strategies. Answer 5 Dear Netflix Management, this document evaluates the current market trend and the position of Netflix in such a competitive industry. There are several ideas and strategies discussed in the document that have been revised based on the changing trends in the DVD market. Netflix is already considered an established name in the American and European DVD and video industry. However, there are many countries where the services provided by Netflix are not yet available and they can serve as the potential customers for the firm. The firm must try to expand their business by catering other markets by hiring cross cultural experts so that the scope of failure is low. Netflix must develop some differentiation strategies by offering services and products that are not yet being offered by their competitors. This may include certain user friendly software that is complementary to the services and products being offered by Netflix. The firm is losing a great share of its profit to those who illegally download or access the products and videos being offered by Netflix. The firm needs to take immediate actions to stop this privacy and retain its market share. Netflix needs to work on its infrastructure by introducing the company’s own delivery service. Work Cited Net14: , (Netflix Financial Statement), Read More