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Evolution of the internet
Evolution of the internet
Evolution of the internet
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Target customer is pertaining to whom the product or service is marketed to and sold. (Wharton, 2006) Much of a company’s demand research goes into studying who is interested in and purchasing their product or service. Consumer groups are constantly being identified so that new markets can be breached that haven’t yet been accessed. Age, gender, and ethnicity are all major identifiers for subsets of consumers to be studied and marketed to. (Rigby, Christenson, & Johnson, 2002) Finding a target consumer group can result in a new product line, sales ads and audience which in turn can drastically change a company’s profit as well as reputation. Technological Levers of Change Far more known are the next three levers of change. The technological levers have more to do with traditional notions of innovation and involve more product and technology based revolutions as opposed to operation and business model analysis. (Wharton, 2006) Product and Service Offerings A product and service offering is the invention in innovation. (Wharton, 2006) This comes down to the actual product being sold, how it operates, what the product consists of, and what functions it performs. This can consist of an improvement on a product which already exists or an …show more content…
The supply chain of the company was totally altered within a relatively short two years. Initially the supply chain operated based on a combination of software and physical goods. (Teece, 2010) The consumer could organize their preferred movies or “queue” online and when they returned their previous rentals, they would receive the next movies on their “queue”. (Lusted, 2013) This involved the physical movement of DVDs through mail from distribution hubs. When Netflix moved towards a streaming based business system their entire supply chain was altered and required much more emphasis and workers in the information technologies center. (Lusted,
Product is/are the products or services you offer and are they unique and different, superior in quality and easier to use. In my own opinion, the product or service is one the most important aspects of a successful business. If you have an item that the customer really wants they will drive out of their way to purchase it. They are usually willing to pay a higher price if the quality justifies it. When a local popular hamburger place open up in Phoenix, people drove long distances and sat in long lines just to bite into one of their juicy hamburgers.
Figure out the typical customers is the first marketing strategy. Business should find the right customers who would by your product and tailor and focus its marketing effort toward them. Thus, this target market represents the group of customer offering greatest opportunity.
A major strength that Netflix has is their ability to push for such innovation. They have reached new lengths since their start in 1997. From in-mail DVDs, to streaming media on smartphones and tablets, it’s unbelievable to witness this in the making. I think the world is a little shocked on the technological advances of Netflix. What they have done so far is spectacular and it is all because of innovation. New ideas and new strategies developed over the last fifteen years has lead Netflix to where they currently stand today. They currently have a subscriber base of over 700, 000, offering thousands of titles on many different devices. This was made possible because of their ability to innovate and strive for new technological advances. I consider Netflix a very brilliant company. Their strengths are very clear, but this isn’t to say that they have no weaknesses. Netflix has far more competitors now, than they had 15 years ago. I would say that their biggest weakness is not offering enough newer content. Some of their competitors such as Hulu, offer a ridiculous amount of new content. Netflix seems to have a large amount of titles, but majority of these titles are older titles. They need to offer newer titles more often than less. With the company advancing and technology on the rise, the younger population aren’t into the older titles. The younger population now take up a good chunk of the customer base. Netflix must
In relation to this case, Target Corporation depicts a brand personality among its target audience. Target Corp. is considered as the retail store that caters to the younger and more educated and well-off clientele as to compare with its rival. In a survey conducted, Target Corp. shoppers fall on a 46 years old age median, mostly female, have children at home, and attended or completed college (Target Corporate Facts, 2006). Thus, the target market is perceived to be sophisticated. However, with the corporate values the corporation applies, the brand personality serves as one of its distinguishing pro.
What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor-filled chocolates are to be sold to adults. As aforementioned, the product in question requires that adults be considered as the only market. This owes to the reality that the law prohibits the selling of alcohol and alcohol-related products to minors.
In conclusion, the vast technology change opens many opportunities for Netflix to grow. By assessing the market environment and challenges, it enables Netflix to overcome the obstacles to remain as the market leader. To achieve the future growth, Netflix should implement both strategic and tactical approaches to compete with others. The strategic and tactical business plans for Netflix are improving content libraries, developing more partnership with production firms, and staying with the low-pricing strategy.
The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in strategic focus has allowed Netflix to grow into the largest online entertainment subscriptions service in the United States with over 6.3 million subscribers (Netflix).
Although Hastings vowed to be divergent from other video retailers, his goal was to use an identical pricing strategy; however, one that would “appeal to customers [. . .] who used online shopping as an alternative to traveling to retail outlets” due to ease of access and more preferences (Shih, Kaufman, & Spinola, 2009, p. 3). Furthermore, Netflix launched its business at a time DVDs had barely hit the marketplace as the firm anticipated the new technology to be a promising venture. Nonetheless, within a year DVD players became so vast...
As the firm moves forward, top managers must pay attention to staying unique to sustain a competitive advantage. Netflix does not own their content, nor do they have any tangible assets. Netflix is a part of a broad range of network users. As technology continues to grow exponentially, Netflix will have to be readily adaptive to change and innovation. Technology never stops growing and evolving, therefore, Netflix’s business platform should never stop growing and evolving. At the same time, they must be careful to remain user friendly and customer centric by keeping the technology at a level where users will not have to obtain a certain set of technological skill sets.
In this paper, I would like to analyze Netflix’s distinctive strategies based on their competitive advantage and how it covers from its strategy mistakes in the high threat industry as well as give some viable suggestion for the future development of the company.
Introduction Reed Hastings (co-founder) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. As Netflix went public in 2002, shortly a year later their subscription reached the one million mark (Netflix Management, 2011). Recently, Netflix was recognized as one of the 50 most innovative companies, ranking number eight for “streaming itself into a $9 billion powerhouse (and crushing Blockbuster)” with 20 million subscribers (fastcompany.com, 2011). This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity.
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
1. Defining the Target Population: The target population is the population that the reasearcher thinks has the information he or she needs to carry out the research project.
Innovation is very important to the long term success of an organization. Therefore, it is essential to understand what innovation is. The Business Dictionary defines innovation as “The process
The term "product" refers to tangible, physical products as well as services. It also means defining the characteristics of your product or service to meet the customers' needs. AirAsia’s philosophy is girded by the fact that they have been seen as a small airline competitor for many years. Therefore, in order to win more customers and return customers, they need to ensure that their primary products and services are up to par and meet the defining needs of customers. AirAsia offered (product) tangible and (services) intangible good to increase the demand of customer. (AIR ASIA MARKETING PLAN, 2015)