Assignment Folder 2 C Baudett.docx - Assignment Folder 2 Chapters 3 4 Carlos Baudet 1 I believe Netflixs entry into the marketplace was spot on as they

Assignment Folder 2 C Baudett.docx - Assignment Folder 2...

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Assignment Folder 2. Chapters 3 & 4 Carlos Baudet 1. I believe Netflix’s entry into the marketplace was spot on as they entered the market when DVDs were very popular and online streaming hadn’t become a market just yet. Netflix’s basic company strategy was to mainstream and remove the hassle out of renting movies. They wanted to change the way customers rented movies by saving them time to travel to and from the movie store as well as the time it took to pick out the movies. Allowing customers to rent movies through their online site and shipping them for free, was a home run for the company. I believe one of the key points to their strategy was that they eliminated late fees and let customers return movies at their leisure. Traditionally, all rental services capped rental durations and charged late fees. At this point, Netflix has proven that its business model works and I believe its biggest challenge is keeping their customer base. Competitors such as Amazon, Apple, and Hulu have imitated the Netflix model and are offering similar offerings at the same price or lower. The
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  • Spring '13
  • Sheltra
  • Advertising, Web search engine, Yahoo!, late fees

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