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Netflix market orientation
Operations strategy of netflix
Netflix market orientation
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Recommended: Netflix market orientation
SWOT Analysis
Netflix
(Netflix, Inc. 2015)
STRENGHTS
Strong business model provides a superior value proposition
Netflix business model of online streaming has given the company a competitive advantage over its closes competitors. With over 100,000 titles that their customers can enjoy, and a top of the line software that recommend movies or television shows to customers based on their preferences makes this possible. Netflix eliminates most of the fees that regular programming charges for their service like late fees, shipping fees, and even pay per view fees. Netflix movies and shows can be viewed using household technology like Apple, and Android products, Smart TV, game consoles, and internet video players.
Effective marketing and improving
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As part of their promotional package the company grants new users with a free promotional period of one month so they can try the service out, and look at the list of movies and shows available for streaming. Customer service experience for Netflix is also accomplished by extending the titles available every month, improving the service by providing better viewing quality, and by expanding the devises that make viewing Netflix possible. Netflix also believes that good customer service experience can act as a promotional tool as people will use their experiences to increase the number of subscribers, which in term will lead to more revenues.
Improving financial performance
Since FY2013 Netflix has increased their financial performance to a 21.2% growth. This is driven by a strong international streaming memberships in countries such as, Mexico, Canada, United Kingdom, and the Caribbean.
Court case impact the company image and financial status
The company is involved in several legal proceedings in matters such as, business practices, video privacy protection law of 1988 violation and patent infringement. A sample of such law suits happened in the U.S. District Court for the Northern District of California when Netflix allegedly falsified document regarding their business practices, and their contracts with video providers.
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
A critical SWOT analysis of Netflix’s social media techniques clearly shows they are ahead of the game and not backing down from rising competitors like YouTube which is gaining viewers by increasing the amount of online content.
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
Charging a monthly fee for unlimited rentals, Netflix eliminates due dates and late fees, as well as eliminating the long lines of a brick-and-mortar store. ? Netflix uses their great customer service to keep customers happy, which keeps customers from canceling their subscription to the service. If there is a problem that arises during the rental process, such as a damaged DVD, or lost DVD during the shipping process, Netflix addresses the problem immediately, and never charges the customer for the problem. ? Netflix was the first company to offer DVD rentals over the internet. By leading the industry in innovation, selection and delivery time, Netflix enjoys the benefits of a strong brand image, and strong relationships with DVD suppliers and manufacturers.... ...
It has movies that you can't find anywhere else. Netflix uses collaborative filtering technology to send you emails that alert you to movies that you might otherwise never consider. Netflix saw the video- and game-rental market move to DVD and built its business around that trend. Netflix doesn't rent videocassettes, only DVDs (in part because they're lighter and cheaper to mail). Netflix was able to identify and implement a strategy for growth through product and services acquisition, by turning what seemed like an unprofitable rental business into a rental driven financial blockbuster.... ...
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.
Companies like Amazon and Netflix are very effective in predicting what customers normally buy and watch. Knowing what your customers are or are not buying will allow you to position products that they are statistically likely to purchase based on recent transactions and activity. This is a powerful tool for Netflix because it keeps users engaged and actively using the service but also allows them to tailor their investments in content towards items that are more likely to keep users active on their site.
The following essay will analyze Netflix Company’s social commerce strategy. It includes the definition of social commerce, company history, social commerce strategy that the company is engaging, the effect of social commerce for the company and measuring social commerce success of the company. Below, brief definition of social commerce and the company history.
Reed Hastings, co-founder of Netflix headquartered in Los Gatos, CA, began the company’s operations in 1997 after receiving an enormous late charge from a movie rental he returned long overdue. However, Hastings had the desire to be different than traditional movie outlets; whereas, customers had to drive to the location, pay a certain amount for each movie they rented, and were given a deadline in which to return the movie. Instead of using a method established by other video markets “to attract customers to a retail location, Netflix offered home delivery of DVDs through the mail” which eventually led to a booming business towards streaming forms of entertainment (Shih, Kaufman, & Spinola, 2009, p. 3). Today, Netflix exists along with several competitors; however, offers the most streaming content available for viewing, and continues to grow its subscriber base both domestically and globally. Although, direct and indirect competitors, acquisition costs, and several barriers present a financial threat for Netflix, the company has managed to grow with the acclamation of partnerships, expand to international territories, and vastly increase its price in shares of stock.
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.
Video Rental and Streaming has partly been of the most significant avenues of the general home entertainment industry in the United States for many years. It promotes constructive development through various channels such as Information Technology, Public Multimedia and it also has a huge impact on people’s lives and their entertainment on demand. One of the best companies which provide this high-advanced service is Netflix, Inc (Netflix). It was incorporated on August 29th in 1997 in California by Reed Hastings & Marc Randolph; listed on NASDAQ as NFLX in 2002. Netflix is the world’s largest Internet subscription service streaming television shows and movies with over 40 million members in 40 countries (Netflix, 2013).
There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world. Digitally offering television shows is an area of competition that has previously been controlled by
Overall, these are all marketing strategies that can be utilized both locally, and on a larger scale. Two additional factors must also be considered when using effective marketing strategies. Determining areas where marketing will be most effective, as well as methods to organize and keep track of existing, and new clientele are imperative to successful
Too often, a marketing function is misunderstood, because many people do not understand what is meant by ‘Marketing’.
At the start of this module, I had no idea what to expect. When I heard the term “Marketing”, only one thing came to my mind: presentations. When I used to be in school, I remembered vaguely that my presentation skills weren’t exactly even close to Suze Orman, who is considered to be America’s most motivational speaker. In fact, they were so bad, I wasn’t sure of doing this course in the beginning. But then it wasn’t like I had a choice. I had opted for BA Hons. Business Management and the course came along with a module named Marketing.