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NetFlixs Business Model and Strategy - Case Study Example

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"NetFlix’s Business Model and Strategy" paper examine what were the possible driving forces that led to such good market standing of the company. The paper points out various strategic challenges that the firm might face in the near future and suggest means to minimize the impacts of those threats.  …
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NetFlixs Business Model and Strategy
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Download file to see previous pages At the onset, Netflix started off as a DVD rental provider that used the internet to take orders. Subscribers made their selection over the portal and mailed in their orders. The DVD’s would then be delivered via mail. The entire system allowed the customer to keep the DVDs as long as they wished to, without an extra charge. Netflix derived its major revenue from its subscription plans that incorporated the costs of streaming, mailing, and renting of videos. As we moved to the digital age, internet streaming and online viewing have caught up. NetFlix has welcomed the change and continues as a leader by innovation i9n the video rental market. DVD renting, though, has not lost its value just yet (Hillary, Alex, & Ian, 2009).

In this paper, we would analyze NetFlix’s market standing, its business model and its business and marketing strategy using various tools like the SWOT analysis and Porter’s five forces to determine the company’s key success factors and staying strength. Moving forwards, the discussion continues to determine the critical areas that might need immediate attention for NetFlix’s sustenance and also suggest some marketing and strategy recommendations that might prove useful in revenue and subscription improvement.
Strategically speaking, the video rental industry is more competitive than an oligopoly or a monopoly. This is believed to be in stark contrast with what the general opinion holds. An industry where instant availability drives the market, the paper tries to analyze what forces have led to the success of NetFlix and what could be the possible challenges in the given scenario through various tools (Null, 2003). Netflix is presently very well positioned in the market, so much so that it can be safely called as a market leader. It also shares the competitive advantage of having a huge variety of video collections and good availability of popular videos. ...Download file to see next pagesRead More
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