Amazon prime did not score as well as netflix in many

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Amazon Prime did not score as well as Netflix in many of the critical success factors. It was average in almost all categories with it lowest value coming from financialprofit. This is because Amazon has shown financial losses over the past several quarters. Amazon does surpass Netflix with a high stock price and market differentiation scores. A high stock price means that investors still believe in Amazon as a company while, high market differentiation gives Amazon something to fall back on in the event it can’t capitalize on internet streaming.
Netflix Business Case11Hulu fared the worst of the three in the matrix. It has the fewest members but it does have the best price. It rates well on product quality, showing the most up to date in television shows, but it does not have the large historical video library of Netflix or Amazon. Another drawback to Hulu on the chart is the fact that it is not a publicly traded company. As such its financial records are unavailable and members of the public cannot purchase stock in the company.8Historical Financial StatementsIn the Netflix Financial Statements (Exhibit 6), Netflix has shown a significant rise in its net income, a 555% jump from 2013 to 2014, as well as its return on assets ratio and return on equity ratio. This shows that Netflix is a highly efficient and profitable company. Netflix/ revenues have increased 53% from 2012 to 2014 and is trending upward over the last three years. Summary financial statements can be found in 9Ratios and Financial Condition AnalysisNetflix’s financial ratios, seen in the financial charts Exhibit 7, are steadily trending upwards as Netflix grows domestically and internationally. Its profitability is increasing drastically year by year to include its return on assets and its return on equity. As Netflix continues to grow as DVD rental and internet streaming leader, these numbers will continue to increase and the profitability for investors will continue.10 Alternative StrategiesThree classes of alternative strategies from which Netflix chan choose: 1) Stability Strategy, 2) Expansion Strategy and 3) Retrenchment Strategy. Stability Strategymeans a stoppage in expansion or no significant changes in strategy. The ideal
Netflix Business Case12use of Stability Strategy is when a company competes in the same market for several years selling the same product or service. This strategy focuses on slight improvements orfunctional performance to stay ahead in the marketplace. Stability strategy is a process where the organization tracks development and ensures market value and profit shares. The benefits of this strategy are to safeguard existing market interest and strength and returns on investment and resources. Advantages of Stability Strategy are to use top management as the decision makers and provide clear directions to employees. It also allows a large organization to use economics of scale. However, as a disadvantage, Stability Strategy leads to poor communication and a lack of cooperation on many levels.

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