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Unformatted text preview: that they have. When entering the market in 1998, Netflix had to find a niche in the market to compete against Blockbuster, Movie Gallery, and Video on Demand. Their niche was to offer customers the best deal for renting movies without ever having to leave the comfort of their home. Within an elastic industry, the most favorable way to make a profit is to decrease your price and thus increase consumer demand. Thats exactly what Netflix did. Along with fulfilling customer demands, and offering free trials, Netflixs strategy of working with an elastic industry has helped them become one of the most profitable and recognizable movie rental companies in the world. Netflix article is also attached, obtained from GVSU Course Reserve...
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- Spring '09
- Managerial Accounting