Problem Assertion: Netflix can be losing
business and earnings to competitors and technological advances.
Scenario: Netflix is feeling competitive pressure via larger companies using what seems like limitless resources; namely, Wal-Mart, Disney and Successful Video. Not only is the pressure being experienced from opponents, but likewise the pressure is being experienced from the changing entertainment industry itself. Technology is enabling consumers to acquire media in different ways; such as direct for downloading vs . your mailbox order program Netflix uses.
В•Pioneer in on the net DVD accommodations, which built brand loyalty/recognition В•Patent safeguard for most of its business design. This can offer an additional income stream intended for Netflix if it considers license some of the parts. В•Access to 55, 1000 titles (www.netflix.com), which offers one of the most options to its customers as compared to competitors. В•Can reach the majority of its customers within just one working day. В•Does not need overhead associated with traditional physical competitors В•Netflix's CineMatch technology enables this to match user's likes/dislikes with movies by making recommendations depending on collected data/previous renting patterns. В•Subscriber base of above 1 million.
В•Four different subscription options to better provide various movie-watching habits. В•Customer satisfaction can be high, being unfaithful out of 10 consumers would suggest the service to friends and family. В•There are no past due fees/shipping expenses to the customer.
В•Cannot reach those not really connected to the Net.
В•Limited range of DVDs will be allowed every customer in the past В•The pricing structure does not allow for those individuals enthusiastic about renting films occasionally vs . monthly. В•Negative net income.
В•Cannot reach all its buyers within one business day.
В•Offer game titles in addition to DVDs
В•Offer downloadable DVDs/Video games
В•Alliances with merchants...