Netflix

Statement of Issue Reed Hastings founded Netflix after paying a $40 late fee for an overdue ikon rental. inspired to find a more customer-friendly alternative, he formed a vision to provide home movie rental profit. Founded in 1997 during the emerging days of the e-commerce, Netflix offered a net-driven home delivery service, centre on renting DVDs via mail from a meshwork-based siteing platform. Since its inception, Netflix has garnered a reputation as an innovator in the home movie rental industry. After more than ten years in business, the company has achieved profitability in 2003, and went cash flow cocksure in 2002, all-the-while victoriously battling the industry leader, Blockbuster. As the pioneer of the web/mail movie rental poseur, which has become the current prefer approach with customers, the company has several advantages, including a strong statistical distribution system, expertise in efficiency, and customer loyalty. However, despite these successes and advantages, the company faces a potentially disruptive threat: the video on want (VOD) delivery mechanism. VOD is an emerging distribution channel where pay-per-view programming merges with mesh downloading, allowing customers to download films and watch on their home televisions.

As VOD becomes a more universal distribution channel, it marks a unfavorable strategic juncture for Netflix: while the companys sign offering was a disruptive force in the industry, which undermined officeholder competitors core competencies and eventually forced them to follow suit into web rentals, Netflix must now adapt its own business model (leveraging its existing core strengths) in order to maintain its relevancy as distribution channels evolve. Analysis Discussion In order to best assess Netflixs competitive position, the companys strengths, weaknesses, opportunities, and threats (SWOT) are reviewed: Strengths: Customer-friendly Business Model: Prepaid subscription service whereby customers... If you want to get a full essay, order it on our website: Orderessay

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