"Competition
in the Movie Rental Industry, Part 1
Assess
how technology and the changing demands of customers have impacted the movie
rental business.
The
changing trends in technology have also impacted on the change in demands of
the customers as far as renting movies is concerned. This is most evident when
it comes to electronics where a list of electronics can be accessed at a faster
speed. The technologies have opened up new, flexible and a fast way in which we
can be able to access a wide range of video entertainment content.
For
a long period of time, we have had the ability to watch movies our computers,
laptops and many other platforms. Despite this technology has made it possible
for almost every of our appliances to be internet enabled and many have
homework connectivity enabled, and a new set of internet - connected TVs,
Blu-ray players, video game consoles, and other set- top-boxes, the infrastructure
which has been put in place to consume video over the internet. With the
introduction of the digital entertainment has changed the way that the rental
movie market works (Ausadesus-Masanell & Tarzijan, 2012). The new system has helped make efficient
inventory management and store operations. The online rental market has also
made it possible the DVD rental industry to drive more services.
"Suggest a
strategy for Netflix’s to prevent a new entrant into the marketplace and
demonstrate its effectiveness.”
Netflix is the world’s largest online movie rental
service that has millions of members from different parts of the country. With
the new technology Netflix has been able to streamline its services making it
to become more efficient in delivering its services (Thompson
& Gamble, 2010). This includes
streaming high quality movies to its customers and also directly to its
subscribers. Despite this, I think the company has a lot to put in making sure
that it has a strategy to enter the video market. The company can differentiate
itself and reduce prices in regard to competition in the market. Another
strategy that the company can implement is streaming live movie strategy to
make sure that it increases the resolution of the movies to enable a high
definition and 3D graphics, which could be a competitive advantage against its
competitors.
"Evaluate any new
products in this marketplace and the potential impact to Netflix’s market
share."
A new product in this market could be VOD. This will
have a huge impact when it comes to the market share of Netflix. Rivals within
the industry could use the same to bring stiff competition to the company due
to price competition. Despite the fact
that the physical product will not bring about the larger part of the
competition, the services will be the ones that will do this. It is important
for Netflix to make sure that they have the right strategies in place to
control the issue with its share in the market.
Reference
Ausadesus-Masanell,
R., & Tarzijan, J. (2012). When one business model isn’t enough. Harvard
Business Review, 90(1/2), 132-137.
Thompson,
A. A., Strickland, A. J., & Gamble, J. E. (2010). Crafting and executing
strategy: The quest for competitive advantage: Concepts and cases: 2009 custom
edition (17th ed.). New York: McGraw-Hill-Irwin. (Note: This is a
textbook uniquely created for Strayer and can only be purchased through MBS
Direct. The contents of the book differ from the national title.)
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