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The Netflix Financial Statement - Essay Example

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This essay analyzes the Netflix financial statement in 2012. 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…
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The Netflix Financial Statement
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Download file to see previous pages 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 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 entry pass. Therefore Netflix must make sure that all of its strategies should be focused on the new and emerging market practices.
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 the 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. ...Download file to see next pagesRead More
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