Chapter 04 - Information Systems A Managers Guide to...

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4-1 Information Systems: A Manager’s Guide to Harnessing Technology
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This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported License. To view a copy of this license, visit send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA 4-2
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Chapter 4 Netflix: The Making of an E-commerce Giant and the Uncertain Future of Atoms to Bits 4-3
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Learning Objectives Understand the basics of the Netflix business model Recognize the downside the firm may have experienced from an early IPO Appreciate why other firms found Netflix’s market attractive, and why many analysts incorrectly suspected Netflix was doomed 4-4
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Learning Objectives Understand how many firms have confused brand and advertising, why branding is particularly important for online firms, and the factors behind Netflix’s exceptional brand strength Understand the “ long tail ” concept, and how it relates to Netflix’s ability to offer the customer a huge (the industry’s largest) selection of movies Know what collaborative filtering is, how Netflix uses collaborative filtering software to match movie titles with the customer’s taste, and in what ways this software helps Netflix garner sustainable competitive advantage 4-5
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Learning Objectives List and discuss the several technologies Netflix uses in its operations to reduce costs and deliver customer satisfaction and enhance brand value Understand the role that scale economies play in Netflix’s strategies, and how these scale economies pose an entry barrier to potential competitors Understand the role that market entry timing has played in the firm’s success 4-6
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Learning Objectives Understand the shift from atoms to bits, and how this is impacting a wide range of industries Recognize the various key issues holding back streaming video models Know the methods that Netflix is using to attempt to counteract these challenges 4-7
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Introduction When Netflix went public, financial disclosure rules forced the firm to reveal how profitable it was
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  • Fall '13
  • long tail, Blu-ray Disc, Churn rate, Cinematch

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