Factor 3: Supply contracts with movie producers
Netflix can re-negotiate its supply contract agreement with movie providers to obtain first refusal rights for screening newly released videos two weeks after its actual release date. In return, Netflix can promote other movies by movie producers by screening a short trailer on the first 1 minute before movie starts. Netflix should also form horizontal complementary strategic alliance with advertising firms to stream advertisement for the first 5seconds before the movie starts playing in order to bring in additional revenue. Netflix can also partner with international airlines to provide in-flight entertainment and promote its brand identity to consumers internationally. Netflix can partner with cable content providers as well as other cable stations to offer popular shows and award winning series rather than providing only movie streaming to consumers.
Factor 4: Increasing current market share
The current strong reputational brand and financial status of Netflix presents an opportunity for movie streaming to be brought internationally by adopting an international cooperative strategy using cross border strategic alliance to form partnerships with major overseas hardware firms such as TVs, PCs and mobile providers.
Factor 5: Enhancing customer service experience
Besides providing excellent customer service through fast delivery of DVDs, Netflix should focus on enhancing customer’s online experience by allowing customer to preview trailers or first 10 minutes of the movie for free. This would differentiate itself from its competitors.
Factor 6: Re-structuring
To recover Netflix’s long terms debts and interest rates, Netflix should downsize some of its domestic stores as its business structure moves towards online business. This is more cost efficient with having the right amount of resources and proven in the case of Blockbuster (in debt due to the changing demographics). Internally, Netflix should set...
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