Marketing Mix: Product, Price, and Place - Assignment Example

Netflix has adopted and implemented a product and service differentiation strategy in its business operation process. The management of the organization has effectively focused on the efficiency and speed of online video streaming services. Adoption and implementation of high-quality and advanced technological resources have helped the organization to meet the customers’ demand. The product and service portfolio of Netflix includes online video streaming, low-cost blue-ray disk rental that are accessible in advanced operating systems and smartphones.

            The recent financial crisis and economic recessions affected the global business environment. People are trying to save rather than consume activities due to low disposable income and limited purchasing power. Therefore, the management of Netflix has adopted and implemented a cost-leadership strategy in the business operation process in order to support the affected purchasing power of target customers. This business-level strategy has helped the organization to reduce its overall business operation cost. This process has helped the organization to offer quality and high-speed services at a competitive price level. For example, the organization provides simultaneous streaming and HD video in the standard streaming package for 7.99 dollars on a monthly basis, which is quite economic and cheaper compared to other existing service providers. In addition to this, Netflix has introduced a family plan of four high-definition videos streaming at 11.99 dollars. This plan is quite unique and economic. Users can avail of this unique service plan by near about 1.25-15 dollars cheaper comparing to other service providers. It has helped the organization to gain potential competitive advantages over its competitors in global marketplaces.

            The management of Netflix has adopted and implemented an effective supply channel and distribution strategy in order to support its existing business-level strategies. First of all, the organization has implemented a digital distribution strategy in the business process in order to reduce overall supply chain cost as it somehow helps to limit resource gathering, allocation, and distributing cist. Catalog and order management have helped the organization to focus on B2B distribution that has ensured business profitability. In addition to this, the management of Netflix has always tried to enhance collaborative work performance with several owing partners in order to enhance effective decision making and strategy development processes in near future. These strategies have helped the organization to reduce its overall business operation cost.

            It is true that the management of Netflix has adopted a centralized process in supply chain and distribution activities. It is highly important for the management of the organization to focus on decentralization in order to reduce overall supply chain lead time. In addition to this, it can help the organization maintain zero inventory turnovers in order to support its adopted cost-leadership and differentiation business-level strategy. The management of the organization should try to continue its existing strategies and business operation processes in order to lead the global marketplace significantly in near future.