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Netflix case study - Essay Example

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In the paper “Netflix case study” the author conducted a strategic evaluation and situational analysis of Netflix company. He provides summary of his recommendations that should be implemented. Netflix has suffered negative criticism in the market…
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Netflix case study
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Download file to see previous pages Netflix is facing stiff competition from other players such as You Tube, Video on Demand and iTunes that offer cheaper and reliable movie products (Thompson 138). A key success factor in the future movie industry is the ability to control and dominate the various movie distribution channels such as the Apple iPhone distribution channels, internet distribution channels and rental channels. The ease of access, pricing and size of content library are key success factors in the new movie rental industry since customers require convenience and wide-variety of entertainment content. Netflix should invest in proprietary software that will allow the customer easy-of-use and recommend movies depending on prior customer streaming or search terms on the movie library (Thompson 142). The success of Netflix will require the company to manage its costs in order to reduce the rental business costs and continue focusing on technology to deliver the movies to the customers. According to 2012 survey, many consumers asserted that unlimited internet streaming offered better customer value than pay-per view option. Long-term partnerships with electronic manufacturers will improve the market reach and enable Netflix acquire new customers in its streaming option business (Thompson 144). Netflix is facing the threat of pirated streaming library and stiff competition from more innovative movie rental providers such as Apple’s iTunes, Blockbuster, Amazon Instant video and You Tube. (Thompson 142). ...Download file to see next pagesRead More
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