Netflix Case Analysis

Executive Summary

This research paper is based on Netflix Case Analysis that is based on questions belonging to diverse fields ranging from the industrial analysis, company's history, mission, vision, goals and objectives, business strategy and competitive advantage. Netflix is a leading online movie renting business that is running sound business in the online market. Its more than 100,000 movie titles library is its strength, therefore it is enjoying largest market share in the movie rental industry. Quality, Price and availability are some of the most important factors that can give an online movie rental business running organization like Netflix economic growth and strength. Nowadays people are attracted in availing services of those companies that are offering premium quality with affordable price and Netflix has been able to maintain all that with dedication. Netflix has taken over the business of local video stores such as Decatur Hollywood Video store and it has also planned to close its franchises due to heavy losses. People are moving towards buying movies and TV programs online as it provides them with better quality and with affordable price along with no transportation charges. Blockbuster one of the major competitors of Netflix is continuously trying to take over the market share of Netflix by trying various strategies such as price competition, heavy marketing activities and so on. A huge change has taken place in the market of online movie rental business that cannot be managed without the continuous efforts.

Table of Contents

Introduction5

Discussion5

1. Dominant Economic Characteristics of the Online Movie Rental Business5

2. Driving Forces for Change in Netflix Company and Industry6

3. Major competitors of Netflix7

4. Five Forces Analysis7

Internal Rivalry8

Entry and Exit8

Substitutes & Complements9

Supplier Power9

Buyer power10

5. Netflix's vision, goals and objectives10

Vision11

Mission11

Goals and Objectives11

6. Netflix's vision12

7. Netflix's strategy13

8. Netflix business model and strategy13

9. Change in online movie rental business14

10. Factors Involved in Determining the Success in the Online Movie Rental Industry15

11. Analysis of Netflix's Performance16

12. Netflix's SWOT Analysis17

13. Is Netflix having a sustainable competitive advantage18

14. Need for Strengthening competitive position and business of Netflix18

15. Reaction of Blockbuster and other competitors19

16. Buying stock of Netflix at this time?19

References21

Netflix Case Analysis

Introduction

Netflix is the leading internet subscription service of the world that is used for watching TV programs and movies. Currently it is holding more than 27 million members who are availing its services in Canada, United States, Latin America, United Kingdom, Nordics and Ireland. These members can watch and enjoy movies from all around the world in lowest price. People can subscribe a monthly package and can view movies and TV programs of their interest whenever they wish to see. The members of Netflix can instantly watch TV programs and movies, which are streamed all over the world on internet, TVs and Macs.

Discussion

1. Dominant Economic Characteristics of the Online Movie Rental Business

Blockbuster and Netflix is having a great competition among them on the basis of market leadership. The corporate strategies that are implemented by Blockbuster and Netflix have supported them to become leaders with competitive advantage in overall movie rental ...