Netflix, Inc. Case
Netflix, Inc. Case
October 2, 2011
1. Netflix, Inc. has several competitive advantages in the movie rental business. * The strongest advantage they have would be the comprehensive library of titles that they are able to offer to their customers. They have developed a strong relationship with top studios and distributors to enable them to offer a broad selection. Netflix’s is constantly adding new releases and carrying numerous copies of the popular titles. * High levels of customer services and satisfaction would be another competitive advantage for Netflix, Inc. Netflix enhances their customer satisfaction through personalized merchandizing. They have created a customized storefront for each subscriber. Though these stores, subscribers can rate titles, which will generate recommendation of titles for them to rent. They feel through these recommendations and service, it strengthens the relationship and maintains a high level of utilization from the consumer. They encourage frequent communication and feedback from their customers to continually improve service. Netflix also launched two social networks for subscribers. One is Friends; this program allows subscribers to share movie ratings and recommendations. The other program is Profiles; this program allows subscribers to set up sub-accounts for spouses and children. * An effective marketing program is another advantage for Netflix, Inc. They use various marketing programs such as online promotions, television advertising, package inserts and other promotions with third parties. Netflix advertises their service through many different avenues. They believe that their efforts are helped by word of mouth advertising, referrals and public relations programs. * The last advantages would be the convenience, selection and fast delivery of their DVD’s. Netflix stocks more than 35,000 titles. They have no due dates, late fees or shipping charges for their fixed monthly fee. They
October 2, 2011
1. Netflix, Inc. has several competitive advantages in the movie rental business. * The strongest advantage they have would be the comprehensive library of titles that they are able to offer to their customers. They have developed a strong relationship with top studios and distributors to enable them to offer a broad selection. Netflix’s is constantly adding new releases and carrying numerous copies of the popular titles. * High levels of customer services and satisfaction would be another competitive advantage for Netflix, Inc. Netflix enhances their customer satisfaction through personalized merchandizing. They have created a customized storefront for each subscriber. Though these stores, subscribers can rate titles, which will generate recommendation of titles for them to rent. They feel through these recommendations and service, it strengthens the relationship and maintains a high level of utilization from the consumer. They encourage frequent communication and feedback from their customers to continually improve service. Netflix also launched two social networks for subscribers. One is Friends; this program allows subscribers to share movie ratings and recommendations. The other program is Profiles; this program allows subscribers to set up sub-accounts for spouses and children. * An effective marketing program is another advantage for Netflix, Inc. They use various marketing programs such as online promotions, television advertising, package inserts and other promotions with third parties. Netflix advertises their service through many different avenues. They believe that their efforts are helped by word of mouth advertising, referrals and public relations programs. * The last advantages would be the convenience, selection and fast delivery of their DVD’s. Netflix stocks more than 35,000 titles. They have no due dates, late fees or shipping charges for their fixed monthly fee. They