The continuous growth of the business analytics software markets signifies an increase in the adoption of business analytics in business organizations. Business analytics has been crucial in optimizing organizations internally as well as maintaining flexibility to overcome unexpected external pressures as businesses shift from operating on intuition to utilizing the growing data volumes. Business analytics is defined as the processes that enable organizations to apply metrics based decision making to all business functions. Among the companies that have been successful with business analytics is Netflix, the American entertainment company. However, other companies, such as Trader Joe’s, although successful, still use the traditional intuition …show more content…
to run its business affairs. This paper seeks to discuss the benefits of business analytics using Netflix and Trader Joe’s. Business analytics help firms gain insight into their customers to enable marketing optimization for better product delivery.
Netflix has been popular with the application of business analytics to gain better and informed decisions regarding movie and TV viewers thereby improving their services. Netflix, unlike Trader Joe’s, the California-based chain of neighborhood grocery stores, considers data visualization as of vital importance, which it uses on a continuous basis to tweak algorithms, get better insights to solve business issues. The use of analytics shows that Netflix better understands its customer more than Trader Joe’s as Netflix goes a notch higher to satisfy its customers and technical professionals as shown by the success of the TV series, House of Cards. Trader Joe’s is not present on any social media platform where it can interact with consumers and gain valuable information. The company only relies on the traditional means of reaching customers, such as advertising and word of mouth while interaction with customers only happens on its website. Further, Trader Joe’s relies on website cookies to track customer information while Netflix relies on business intelligence through data models to get deeper insight and recommendation around …show more content…
shows. Netflix, further, uses business analytics in casting, trailer production, designing of character persona, color paste selection, thus improving the program viewership experience. Therefore, Netflix can accurately predict whether the product would be a hit even before it reaches the market. Netflix, unlike Trader Joe’s can ascertain with a high degree of confidence how successful a product would be. Trader Joe’s, on the other hand, would have to sell the product beforehand to get to know if it is successful, specifically due to lack of utilizing business analytics. Business analytics thus enable Netflix to understand the products that require R&D investment, which is not the case for Trader Joe’s. It is evident that the use of business analytics has been helpful to Netflix, which can be the case for Trader Joe’s if it should embrace business analytics.
Netflix has been able to ask better questions and make informed business decisions based upon superior data, data visualization tools, as well as a business culture that entrenches both. Through business analytics, Netflix delivers personalized services to each of its customers by aggregating data about customers, trends, viewing habits, and genres. Therefore, data analytics has helped Netflix to answer crucial questions that most companies still grapple with. The company has utilized analytics to gather and use intelligent information in its business thus making it more
profitable. Trader Joe’s, on the other hand, can duplicate the success of Netflix using the exact same formula. It should include data analytics to its organizational reporting to help evaluate how it enrolls new products, improve business processes in better ways, and solve complex production issues. Trader Joe’s should create a presence on the social media, use data that has already been configured inside all of its enterprise software systems and spreadsheets in addition to streamlining the data. Using the data on the popularity of social media would assist Trader Joe’s realize how much it is missing out on creating a loyal following, who would be more than willing to know what is going on in its stores. Analytics would help Trader Joe’s get insight on its business and trends, demographic shifts, and customer preferences. Further, Trader Joe’s would also boost its core business goals using analytics and social media discussion forums. Trader Joe’s should thus take advantage of business analytics and a social media platform to increase its security in the marketplace and foster its continued expansion. Since Trader Joe’s does not embrace business analytics or harness the power of social media, it is hard to ascertain whether there are any challenges it has gone through. However, for a company like Netflix whose business success is centered on analytics, there are a couple of challenges it had to go through to reach its level of success. These challenges include the use of sVOD, which result in low margins due to long pay back periods. Netflix has also encountered a problem in attracting subscribers due to the wide availability of online content that can be illegally accessed for free. Costs have also been a challenge for the company since customer acquisition requires large marketing budgets, initial sunk costs, and incentives. Customer retention has been another challenge for Netflix since consumers are free to leave at any point in addition to not being tied into long-term contracts
The want for money drastically affected the Younger’s and changed their lives for the worst. In Lorraine Hansberry’s A Raisin in the Sun, A family in 1950s Chicago want for money was putting a negative strain on the family.
Data Analytics has significantly grown in less than two years, this quick growth has caused the company to evaluate the IT environment and its ability to support the growth and secure the data of the company. The CEO is expecting the company to grow 60% over the next two years; with the success of the company it has been determined that a change to the current IT environment and infrastructure must occur to better support the employees and the customer base.
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
? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead market share of online DVD rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has fewer problems in predicting revenues.
“Stock of the online DVD rental company was up more than 15% in early morning trading Thursday. Netflix increased their forecasts for both revenue and total subscribers today, trying to compete with powerhouses like Blockbuster and Wal-Mart. The increased forecast stems from a slew of new subscribers that have invested in the service after a price decrease from $21.99 to $17.99 last month. Despite the increases in revenue and subscribers however, some analysts feel that the business model is “fatally flawed” and the company may fall by the wayside due to competition from the aforementioned retail and entertainment powerhouses.” Investors Guide reported this.
The idea inspired Reed Hastings and Marc Randolph, and then they founded Netflix in Scotts Valley, California in 1997 (Netflix, 2014). The company comes into play by developing a subscription-based streaming platform for movies and television shows. Unlike the traditional movie rental businesses such as Blockbuster and Redbox, Netflix’s innovation offers service via Internet, and it does not have any physical stores but instead delivers DVDs through postal mail in the U.S. Since then, Netflix has become the world’s leading internet television network with constant growth of customers to over 48 millions members in more than 40 countries in the North America, Europe, and the Latin America (Netflix, 2014). In this analysis, the main focus is examining the current market environment for Netflix. It identifies the type of market structure that Netflix is currently competing. The analysis also expands on the competitions, product differentiation, pricing strategy, and measuring the level of easy entry-and-exit.
Netflix’s derives a much of their competitive advantage from their ability to offer each subscriber convenience and a personalized experience. The firm’s CineMatch software gathers data from subscribers’ online profiles, movie rental history and a subscriber’s movie ratings to develop a person...
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.
What makes a good person good? According to WikiHow, "We should learn to define our own morals ourselves. One of the simplest ways to do so is to love others, and treat them as you would like to be treated. Try to think of others before yourself. Even doing small things daily will greatly enrich and improve your life, and the lives of others around you." This quote shows us what we need to do in order to be what society thinks as, “good". In order to be a good person, you have to do good and moral things in your society consistently. However people might think that by doing one good thing once in a while will automatically make you a “good person”, but in reality it doesn’t.
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.
Companies have transformed technology from a supporting tool into a strategic weapon.”(Davenport, 2006) In business research, technology has become an essential means that many organizations use in their daily operations. According to the article, Analytics is a major technological tool used. It is described as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions."(Davenport, 2006) Data is compiled to enhance business practices. When samples are taken, they are used to examine research and understand how to solve problems or why situations are as they are. Furthermore, in this article, Thomas Davenport discusses analytics from a business standpoint. He refers to organizations that have been successful in their usage of data and statistical analysis. In addition, he also discusses how data and statistics can be vital in the efforts to improve the operations of businesses.
In today’s society, technology has become more advanced than the human’s mind. Companies want to make sure that their information systems stay up-to-date with the rapidly growing technology. It is very important to senior-level executives and board of directions of companies that their systems can produce the right and best information for their company to result in a greater outcome and new organizational capabilities. Big data and data analytics are one of those important factors that contribute to a successful company and their updated software and information systems.
The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regard...
Netflix – Joining the Bigger Conversation Netflix’s presentation [http://www.slideshare.net/reed2001/culture-1798664] on the company's culture has over 12.5 million views. The deck isn’t particularly innovative, relying primarily on simple text-only slides. So what is it that keeps visitors clicking through