Competition
in the Movie Rental Industry
"Evaluate Netflix’s current
strategy and determine if the strategy is sustainable."
The current strategy of
Netflix is to increase the subscription, by growing the DVD- by mail content.
For the company to be able to keep the customers happy, it uses the customer
intimacy strategy, something that makes it easier for the company to deliver a
wide selection of content to their clients worldwide, and on a wide selection
of devices. Subscribers are offered by the company low prices as well as choice
of deliver platform. This strategy has been very sustainable and effective
making the company to realize a faster growth in terms of resources. This is a
factor that has made the company to gain a competitive advantage over its
competitors in the respective marketing environments.
"Identify a Netflix strength and
suggest how this strength may be leveraged in the marketplace to ensure a
competitive advantage."
I am of the opinion
that the strength of Netflix is the fact that the company entered the DVD
rental market at a time when there were few companies doing the business. This
is a fact that made sure that the company established its brand and image with
less competition, therefore gaining customer loyalty easily and at a faster
rate. It was the first company actually that started DVD rental business
through mail, and later diversified and ventured into online subscription
business. The company offered customers with a wide variety of movies and DVDs
to chose from, something that also cemented the loyalty among their customers. for
the company to be able to maintain their market position as far as competition
is concerned, I would suggest that the company makes sure that its services fit
the market demand, and that the online service is updated to incorporate the
current technology, so that it can fit the requirements required by their
clients. Having done this, I believe the company shall be able to not only
maintain its current clients and customers but also increase their chances of
attracting more.
"Predict the future of the movie
rental industry. Provide support for your prediction."
The future of the movie
is hard to predict but basing on the current trends in technology and other
fields, there is no doubt that the future depends on the competition from
rivals, innovation as well as effective strategies that can be drawn basing on
the needs and wants from their customers and other market dynamics. The
company’s bundling of the DVD rental together with streaming of movies can
enable them to distribute and work out movies digitally and also continue
building a large customer based subscription. VOD is also expected to continue
gaining popularity and with time, there are high chances that it might displace
the DVD and other media forms.GET HELP WITH THIS NOW!!!
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