The Joy Of Queuing and Other Reasons Why Netflix Works
Time Context: January 2013 - December 2013
Point of view: Marketing Head
Statement of the problem: Can Netflix retain the status they have right now? Objectives:
1.) To ensure that by the end of 2015, Netflix can retain or improve their sales by 10%. 2.) To secure the 40% of market share they have by the end of 2015. 3.) To lessen the numbers of customers that ended their subscriptions by 35% by the end of 2015. Areas of consideration:
1. Highly demanded products and services.
2. Marketable on many varieties of people.
3. Can easily gamble on decision making.
1. Products can be easily obsolete.
2. No other goods to offer.
3. High frequency of customers cutting of their subscription. Opportunities:
1. Trusted among other competitors.
2. Have the majority of the market shares.
3. Almost endless availability of movies.
1. Upcoming possible competition.
2. Wider product line of other competitors.
3. High frequency of downloadable movies.
Alternative Courses of Actions (ACA):
1. Increase the variety of goods to offer.
1.) Can easily attract consumers.
2.) Probability of higher sales.
3.) Can state their own reputation on other product lines.
1.) High probability of loss.
2.) Higher variety of competition.
3.) Too risky.
2. Create loyalty programs for customers (ex. 10% discount on subscription fees for customers who have subscribed for more than two years and so on). Advantages:
1.) Will greatly impact the company in terms of customer retention. 2.) Can attract new customer base especially those looking for long term subscription. 3.) Will make the subscribers feel that they are given importance and thus will market the company through word of mouth to families and friends.
1.) Decrease in overall profits.
2.) No guarantee that customers will stay especially if they can find something...
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