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Netflix Study in Hbr

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Netflix Study in Hbr
Session 3 – Sep. 11 External Opportunities and Threats; Internal Strengths and Weaknesses Read: Day - Scanning the Periphery (HBR, Nov 05) (Reserves) Case Preparation: Netflix (Case Pack)
1. What distinctive organizational resources and core competencies has Netflix developed over the course of its existence? Which ones are most important to its survival?

2. Has Netflix developed a sustainable competitive advantage against its current competitors? That is, how easy would it be for competitors to imitate its business model?

3. How will VOD (video-on-demand) change the video rental business? Will Netflix (and other video rental companies) be better off or worse off as a result of the shift to VOD? How should Hastings and his management team prepare for this development in their core business?

Case study: The Netflix According: Scanning the Periphery (HBR, Nov 05)

The Netflix is a company doing online business, and the difference between Netflix and other video rental business company is Netflix use their online business ability to make the rental DVD fast and easy. Usually the video rental business was satisfied with the rental shop to home, which means people usually to go to the rental shop to pick some videos whatever they like. But the Netflix use the online shopping mode to let people pick videos only online.

①VOD (video-on-demand) is a new IT mode that successfully combines the traditional image leasing business and modern marketing method and IT network technology. This mode will change the purchase way of people who want to rental video. It will make people prefer to look video on the Internet, not go and rental video in a shop. So more and more people use online rental business and the VOD will be better.

②To see the Netflix (and other video rental companies) is better off or worse off as a result of the shift to VOD is a complicated
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