Netflix Analysis
Table of Contents
Summary 3
Implementation of Porter’s five forces in U.S video rental industry 3
Implementation of Porter’s Value Chains in Netflix 5
IT techniques and applications applied in Netflix 9
Netflix's Strengths and Problems 10
Recommendation and Conclusion 12
Summary According to Boogren (2013), the video rental industry has changed in the past decade due to the development of IT technology. Customers have more opportunities to choose different ways to catch the TV programs, movies or shows if they want, it could be from a traditional way like brick-and-mortar stores such as Blockbuster, an online service provider such as Netflix, or a modern channel like TV cable companies. Consider of all, this paper will be separate to the following parts: Implementation of Porter’s five forces in U.S video rental industry; Implementation of Porter’s Value Chains in Netflix; IT techniques and applications applied in Netflix; Netflix's Strengths and Problems; Recommendation and conclusion. Implementation of Porter’s Five Forces in U.S Video Rental Industry
Buyer Power
Buyer power in the video rental industry is high. First, consumers are well informed and demands high quality. They can get and compare all the information from Internet when they are trying to rent a video. Second, due to the multiple choices, buyers acquire the low switching costs. Third, buyers could expect more product differentiation. Since buyer power is high, the industry becomes more competitive. (Boogren, 2013).
Supplier Power
Supplier power in the video rental industry is regard as high because the video rental companies have to buy the copyrights of new movies or TV programs directly from the makers, and also there are few studios and content providers are available. This means the supplier are highly differentiated and unique to the companies and there is no substitution. In the meantime, signing contracts with studios will cost the rental
Summary 3
Implementation of Porter’s five forces in U.S video rental industry 3
Implementation of Porter’s Value Chains in Netflix 5
IT techniques and applications applied in Netflix 9
Netflix's Strengths and Problems 10
Recommendation and Conclusion 12
Summary According to Boogren (2013), the video rental industry has changed in the past decade due to the development of IT technology. Customers have more opportunities to choose different ways to catch the TV programs, movies or shows if they want, it could be from a traditional way like brick-and-mortar stores such as Blockbuster, an online service provider such as Netflix, or a modern channel like TV cable companies. Consider of all, this paper will be separate to the following parts: Implementation of Porter’s five forces in U.S video rental industry; Implementation of Porter’s Value Chains in Netflix; IT techniques and applications applied in Netflix; Netflix's Strengths and Problems; Recommendation and conclusion. Implementation of Porter’s Five Forces in U.S Video Rental Industry
Buyer Power
Buyer power in the video rental industry is high. First, consumers are well informed and demands high quality. They can get and compare all the information from Internet when they are trying to rent a video. Second, due to the multiple choices, buyers acquire the low switching costs. Third, buyers could expect more product differentiation. Since buyer power is high, the industry becomes more competitive. (Boogren, 2013).
Supplier Power
Supplier power in the video rental industry is regard as high because the video rental companies have to buy the copyrights of new movies or TV programs directly from the makers, and also there are few studios and content providers are available. This means the supplier are highly differentiated and unique to the companies and there is no substitution. In the meantime, signing contracts with studios will cost the rental