Introduction
The following is an decision maker summary outlining the separate issues facing Netflix in its current crease position and making strategic recommendations for the businesss future. These recommendations are based primarily on a Five Forces Analysis, bone up Analysis and the financial positions of both Netflix and Blockbuster.
Key Issues
Netflix exists in a highly competitive external environment. There is a high degree of rivalry among competitors and little product differentiation, meaning that the magnate for buyers to substitute substantially to other DVD and image providers is high. As well as other VOD and DVD subscription providers such as Amazon, iTunes and Video-on-Demand, competitors exist in the form of pay TV photograph channels. Thus, the degree of rivalry and threat of substitution products in the movie and TV rentings is quite high. As a result, the buyers wield a significant amount of agent as they are easily able to utilize the benefits of competitors. Similarly, suppliers (in particular mainstream providers such as Universal, Time Warner and Sony) hold a large amount of power in the marketplace as they supply the bulk of Netflixs profit making products.
Netflix also exists in an environment where key success factors such as utilizing technological advances, customer service and marketing, and organizational capability are paramount to the businesss sustainable success. Thus, the key issue for Netflix is how to not simply unite its solid market position, but to improve it by neat a market leader in the KSFs for the rental TV and movie industry, improving its profitability, and continuing to build a sustainable competitive advantage.
Recommendations
Netflixs current strategy focuses on rapid expansion of its customer base through affordable membership fees and rapid delivery of its products. It is also focused on shifting further from mail delivery to online streaming to summation its...If you want to get a full essay, order it on our website: Orderessay
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