Movie Rental Industry

Movie Rental Industry

Introduction

Now a day, movie rental industry is known as the one of the most competitive industry. The success behind the movie rental industry is the use of the advance technology and use of the right management (Kotler, 2009). However, from last few years, the movie rental industry shifts themselves from the delivery of DVD to online services. The present study is about the Netflix driving forces and its favorable and unfavorable impact, company's success in next 3 till 5 years, SWOT analysis and the top issues and recommendations related to the operations of the Netflix and blockbuster

Discussion

Driving Forces

The driving forces changes the movie rental industry are changes in the advance technology, the economical changes and the use of convenient alternatives. In the future, these forces are likely to change the overall environment of the industry that put the negative impact on the organization in the movie rental industry. These forces will be unfavorable for the overall movie rental industry because it will provides the most convenient method and packages. So therefore, many of the competitors will try the convenient method in order to reduce the cost of the operations. But the increasing technology also provides the ease of access of movies which in turn decrease the profit of the rental industry. Also, the economy of the country will be get down so people will not bother to rent the lot of movies

Company's Success in next 3 Till 5 Years

The key factors which increase the profitability of the Netflix - movie rental industry in the next 3 till 5 years includes use of new technologies because of use of new and latest devices, increase demand of the movie which in turn increase the growth rate of the Netflix (Kotler, 2009). Other factors are the new entrant, convenience in the movie rental industry that increase the universal access, economical changes, decrease in the cost of the suppliers and the increasing prices of the movies. These changes will increase not only increase the success of the company but also it changes the operating margin and the net margin too

SWOT Analysis

Strength

Netflix is said to be the first and the important deliver of the DVD through mail which increased the convenience of ease of access for the customers. The company also offers the quick delivery services that includes deliver of the DVD within one day. The company also provides the reasonable monthly plan to its customer with no advance or late fees that in turn increase the customer of the company. The company also has the larger subscriber base on the 23.8 million subscribers and customers. The company has the first move advantage because of the adoption of new and latest technologies. The company also provides the various excellent services with the rights of cancelling the membership whenever customer wants (Kotler, 2009).

Weakness

The first most important weakness of the Netflix Company is the company relies on the suppliers that include the movie studio and the ...