Strategic Position Statement
Netflix is the world’s largest online movie rental service. We provide over 100,000 choices of DVDs to more than eight million of our subscribers. We saw how the Internet is changing the way people buy and sell goods. We saw an opportunity in the movie rental industry and decided to provide a novel product and service from the convenience of ones home. Here’s how Netflix works. First Netflix customers choose which type of monthly package they want. They then make a list of movies that they want to watch. Movies are then shipped to the customer. After the customer has viewed their movies they send the movies back and we send them the next title on their list. All with no late fees or shipping fees. All of this has lead to the success of Netflix. One reason for our increased success is that we have eliminated late fees. This strategy was implemented to keep customer satisfaction high. This let’s our customers watch the movies they want, when they want and not have to worry about late fees. Another successful strategy we’ve implemented is that there are no restrictions to the number of movies you can rent per month. By paying a flat rate monthly fee, this gives customers access to our 100,000 DVD titles. Not only do we offer DVD’s, we offer movies that you can instantly play on your computer or on your TV. This is appealing due to the increased convenience that is offered. It saves the customer an eventual two trips to the local video store. All this is done from the customer’s home and computer. We can compete with rental stores because we provide a better product and service than they do. Local rental stores inventory is limited, whereas our inventory isn’t limited to a confinement of just one store. We always have titles on hand. We also attract customers because when you’re our customer your video store is just out the front door, at their mailbox. This eliminates traveling to and from the video store each...
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