Essay on Microsoft Word

Submitted By YIMING-MA
Words: 521
Pages: 3
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This is a Multimarket Competition age. Netflix wants to win this battle, but they have to beat their competitors in several product or geographical markets. Although Netflix is not the first mover, they’ve learned from the mistakes from Blockbuster. Forecasting the market share, innovating new methods for customers is easy to use. What Netflix said is “Our business model went from dead, to streaming, but all the money is made on DVD, we’re actually delivering great content and people pay instead of going to Blockbuster”. When Netflix was founded in 1997, Blockbuster’s objective was to remain the world’s largest video rental chain, and operated more than 6,500 franchise stores in 17 countries. It is a slow-cycle market and the Blockbuster monopoly situation of the market ,and the other company supply the similar service, but the Netflix understands that the DVD rental industry is not so attractive because of its low barriers to enter into this industry and potential entrants to market range from the actual studio that it created and own the rights of content to illegal digital distributors. The most important problem is Intensive rivalry of competitors are too high, so Netflix has to do strategies for Instituting Change. They are not the first movers for DVD rental, but they are the first one of the online rental, because the CEO Reed Hastings knew the internet time is coming. When they introduced this concept, other competitors still used the traditional DVD rent in the real stores. Netflix doesn't need the cost to rent stores, and create economies of scale, Netflix’s founder secured $30 million which allow it to build and market the Netflix brand. As a result, it provided the cheapest rental price to their customers. This strategy size has a lot of market share during people’s use of the Dial-up; when the industry magnates Blockbuster and Redbox understand the advantage ,it is too late, And now many company start to imitation Netflix's strategy for online rental, it is going to a standard-cycle markets, Netflix has many power competitors such as YouTube, Itunes, etc. As you know , Netflix's disadvantage is lack of
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