With the loss and gain of these contracts each of the

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competition between the firms for licensing and exclusivity contracts. With the loss and gain of these contracts, each of the competitors experience varying degrees of fluctuation with regards to their respective levels of competitive advantage. CPM Analysis The competitive profile matrix (CPM) for Netflix indicates that the firm continues to possess a competitive advantage over competitors such as Amazon and services such as Redbox. It is clear that Netflix has a loyal base of customers, strong levels of product quality, sound advertising strategies, competent management, price competitiveness, large market share, and is attempting to expand globally. However, in the area of global expansion, Amazon begins with the advantage of already being an established firm with an international presence. Furthermore,
Netflix’s struggles with entering the European market further emphasize the fact that Amazon and its Amazon Prime service maintains an advantage in this critical area. Coinstar’s Redbox kiosks are a relatively new development in the industry and appear to have lower market share than that of Netflix or Amazon. In fact, Redbox was required to raise its prices as it began to lose market share in 2014 (Henne, 2014). Analysis of Competitors’ Ratios It is rather difficult for one to analyze the financial ratios of Netflix’s direct competitors. This is due to the fact that its closest competitor is the Amazon Prime instant video streaming service which is merely one segment of the Amazon.com structure. The data offered in Appendix F for Amazon.com represents the entire company. The same is true for Redbox, which is a segment of Outerwall. Despite these realities, the information presented is intended to provide a comparison of important ratios for the two firms. Appendix A: Internal Factor Evaluation (IFE) Matrix   Internal Factor Evaluation Matrix (IFE)         Strengths Weight Rating Weighted Score 1. Convenience 0.04 4 0.16 2. Swift domestic growth 0.08 4 0.32 3. High-quality selection of independent films 0.04 3 0.12 4. Strong value 0.06 4 0.24 5. Original content quality 0.08 4 0.32 6. Emphasis placed on film ratings by customers 0.08 3 0.24 7. Customer retention strategy 0.04 4 0.16 8. Ease-of-use 0.04 4 0.16 9. Utilization of emerging technologies 0.02 3 0.06 10. Strategic partnerships 0.02 3 0.06   Weaknesses Weight Rating Weighted Score 1. Slow international growth 0.08 1 0.08 2. Impediments to international market participation 0.08 1 0.08 3. Loss of exclusivity contract with Epix to Amazon.com 0.04 2 0.08 4. Decline in DVD-by-mail subscriptions 0.06 1 0.06 5. Expired contracts with Sony and Starz 0.04 2 0.08 6. Difficulty with raising subscription prices 0.04 2 0.08
7. Significant cost of acquiring content 0.06 1 0.06 8. Slowing domestic subscriber growth 0.06 1 0.06 9. Internet connectivity issues 0.02 2 0.04 10. Questionable response to new net neutrality rules 0.02 2 0.04   TOTALS 1.00   2.50 Appendix B: External Factor Evaluation (EFE) Matrix   External Factor Evaluation Matrix (EFE)         Opportunities Weight Rating Weighted Score 1. Decline in cable television subscriptions 0.10 4 0.40 2.

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