Netflix Case Study Essay

Words: 928
Pages: 4

MGT 400

Case 11- Netflix
Netflix’s entrance in to the movie rental industry during the early nineties gave them a perfect position to capture the market. At the time of Netflix’s founding many customers of normal video renting stores where becoming frustrated with the lack of service and late fees these video rental stores where providing. Netflix’s original strategy of targeting the early technology users helped them gain a lead when the use of DVD players became the majority of what customers where buying. As the company matured, they developed the business strategy of appealing to online customers. This strategy paid off for the company boosting them from
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Netflix is not competing with Blockbuster anymore, but more advanced business like Redbox. Redbox is able to bring most new releases to its locations in a timely manner. Netflix needs to find a more advantageous way to carry new releases, whether its forming a partnership with Redbox or creating more relationships with major studios to get a hold of new releases first. Either way it is necessary that Netflix takes the next step to provide better movies for its customers. Netflix’s transition into the VOD industry seems like the perfect transition to growing the business. Netflix is a little late on its development though, many other competitors have already moved into this market. Netflix is now competing with cable providers On Demand services, Hulu and other similar websites. Netflix was ahead in the area of user connectivity and customers can now link Netflix with their Xbox or Wii so that they can use their Netflix account on their television. This is great but the demand for new releases is still a huge factor in capturing new customers and retaining current customers. Netflix has developed this great feature but customers get frustrated when there is nothing on Netflix to watch but television series, older movies and international movies. All these factors lead to the same issue, how can Netflix provide better movies