The availability of high speed internet at home and

  • Ashford University
  • BUS 690
  • Essay
  • abidaprveen1
  • 13
  • 95% (20) 19 out of 20 people found this document helpful

This preview shows page 4 - 7 out of 13 pages.

The availability of high speed internet at home and the shift to online TVs created many opportunities for the firms like Netflix in the industry. Threats: There is almost no product differentiation in the industry. Competitors also differentiate themselves in industry by deepening their title selection. A greater portion of consumers gravitate toward easy-to-use mediums such as online rentals and VOD services. Product differentiation is minimal and exists only across segments, or between consumer groups There is high infrastructure costs because of economies of scale in the industry exist in VOD segment as distribution is directly tied to multiservice operator (Cekno, 2014).
Netflix Inc. Grand Strategies In past Netflix Inc. has utilized grand strategies like joint venture and strategic alliance to make a successful story in the industry Netflix has entered into joint ventures when they produce content for their own subscribers. An example of this is like the one between Netflix and Disney for the production of Marvel series. This alliance has resulted in enabling Netflix to be the first company to stream the new Star Wars movie in certain markets, i.e. Canada. Netflix Inc. has also formed a strategic alliance with Google for the sole purpose of defending net neutrality, making sure that they always have sufficient bandwidth for their respective companies which are very bandwidth intensive. Netflix began its life by applying product development and innovation strategy since its inception. Netflix innovative strategy to home delivery of the latest Hollywood hits completely altered the avg. consumer approach to enjoy their favorite movies. Born in an era dominated by video rental storefronts like Blockbuster Video and Hollywood Video, Netflix exemplifies several successful innovation practices. In 2007, Netflix innovated once more as it rolled out movie streaming and taught us yet another valuable lesson in innovation; identify the problem to be solved before the customer is even aware of it. Through product development and innovation Netflix is playing to their strengths and stay successfully in front of customers’ wants and needs (Cekno, 2014).
Netflix current Grand Strategies Innovation Strategy: Disruptive innovation has been the hallmark of the company’s success

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture