Chapter Case Study
Explain Netflix’s marketing strategy? Can it sustain its competitive advantage? Why or why not? Netflix strategy has no brick and mortar stores, big stores with a variety between 300 to 4000 movies in stock. Netflix relies on the internet for customers’ orders and mail system for the delivery. The company does not have late fees, fluctuating monthly fees, predetermined rental periods, instead has a flat fee. Netflix, let customers view unlimited streaming of movies and TV shows for a monthly fee and has also developed platforms to deliver its titles to Nintendo Wii, Xbox 360, PlayStation 3, and TiVo. Netflix also supports decks from Panasonic, Insignia, and Seagate, and a number of Android and apple mobile devices including the iPad. Most definitely Netflix has a noteworthy aspect of strategy that would sustain its competitive advantage for many years to come. Netflix does not have to do or perhaps little marketing to rise to the top of the online marketing. A few well-placed ads will do the trick. Simplicity is the idea, so customers do not feel the pressure. Although, the numerous choices overall, makes Netflix an outstanding company to stay to watch the customer’s preference.
Perform a SWOT analysis for Netflix. What are its biggest threats? Which opportunities should it pressure? One of the best ways to develop a picture of a company is with the SWOT analysis, a look at the company’s strengths, weaknesses, opportunities and threats. Strengths
Effectiveness of marketing programs.
Flexibility in content delivery (movies, TV shows).
Inflexibility in case competitors.
Effectively uses the long tail method: selection attracts customers, and internet allows large selection inventory that offline firms cannot match. Use of Cinematch: Customers get movies that match their tastes rather than a general list of “high rank”movies.
Patent protected recommendation system.
Reduced demand for high price subscriptions
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