Electronic Commerce or e-commerce is defined broadly as an industry that buys an

Question

Electronic Commerce or e-commerce is defined broadly as an industry that buys and sells products, goods, or services over electronic widespread systems that include networks and the Internet. You are to write a 4-6 page APA formatted paper that describes the development process of creating an Electronic Commerce type of business entity. Your paper must incorporate the following concepts and demonstrate critical thinking:

Revenue models or streams 

Market and SWOT analysis 

The Global Economy 

The Internet

Web Server and Email Technologies 

E-commerce models

Selling Online 

Virtual Communities

Explanation / Answer

In 1997 when Netflix was introduced to the market it became a sensational success. Very first time some service was providing rental DVDs over the post in which a customer doesn't have to move from the couches to get the DVDs at their home.
There was a very large involvement of the video stores during definition growth of Netflix. Netflix ended that growth of the stores by providing services to the customers at the doorstep. Later Netflix launched its internet-based subscription service in 1999 and provide a huge number of movies to its customers. The specific change in the strategy of Netflix made him the undoubted king of the industry.

Blockbuster was the initiator of the rental service in the America. But blockbuster never replied new technology to its organisational structure. This specific mistake lead blockbuster to bankruptcy. Blockbuster had it stores all over the America which was very famous for distributing DVD and also had the bending machines which were overcome by the Netflix new technologies and web based streaming.
Major environment shift was shifting from the store based rental system to online Internet based rental system which benefited the Netflix for getting better viewership over the blockbuster.Later blockbuster filed for the bankruptcy which made Netflix a leader in the industry.

According to the McGahan model if a company is going through and industrial change environment then it should also change in the same way otherwise it will go bankrupt. It is obvious to change the company is overall strategies as well as technological advancement according to the market. If a company doesn't see the upcoming clues and arise that the fall conclusions for all the time then the overall loss of the company is very big. Same thing happened with Netflix, when industry was shifting towards the Internet Netflix went with the flow and chose to shifting with the Internet which lead it to be a market leader.

As Netflix enter the market they have successfully gain subscribers by using the escalation to the commitment technique. After they have been the specific market with using the same technique, believe that backing by the name of the Netflix Quickter would also gain the same profit and become an identity in the media world. Online content named The quickster failed drastically people wasn't able to related to the Netflix authentic name.
Group thinking played an important role in deciding this is specific name for the company subsidiary. Name company directly separated itself from the mainstream and the people's mind. A different name people wouldn't be able to relate this to the Netflix quality content. Thinking let this is specific idea to run for several months and which directly result it did Netflix to lose it valuable customers. After losing the valuable customers Netflix got a direct hit by 8 million subscribers. As the company was hit by a great margin top management decided to shut down the specific initiative and revert back netflix original identity.
Netflix leadership team has define their overall decision after discussing it towards the top management as well as looking at the statistics of the previous success of sticking to escalation of the commitment technique. By giving in priority to the escalation of the commitment, netflix has successfully grown its business previously. What is the current time the Marketplace has changed and the leadership team of that Netflix stored at the traditional method of their thinking and got a big surprise from the subscribers.
Blue thinking played an important role in decision making for the specific job. Group thinking lead the overall campaign to a disastrous position where it was very hard to come back but the companies with name helped in reviving it back to the situation of being profitable.

Netflix is one of the best companies available in the market which provide entertainment services directly to your home.

SWOT analysis for Netflix

Strength

Netflix is very popular and convenient. This convenience has widely increase the level of service towards the American households as well as effect on the Global households. Its availability on the cross platform ranging from televisions to mobile phone and there Netflix only series have been a very widely influential in terms of capturing the market. It has over 54 million members worldwide which directly opt for the convenience and increase the overall effectiveness of Netflix in their specific region as the Netflix is expanding internationally.

Weaknesses

Companies domestic DVD rental program has been very widely neglected by the audience since last few years. As internet has took over every service that Netflix provide, there rental services as well as their hybrid plans are neglected by public. Result of this specific problem, netflix has divided there subscription services into two parts. Their subscription services are declining faster than the expected.
Also the international business for the company is not also very profitable and directly creating a burden on the international operations for the company.

Opportunities

Netflix has a very intensive opportunity for increasing their International online business. By expanding its business to the developing countries like India China and Bangladesh, netflix can easily increase their overall effectiveness as well as provision of the different services towards the society.
Original contents from Netflix have been proven very interesting for the customer and customer care directly subscribing Netflix for these contents only. This provision of the content directly increases the overall effectiveness of the organisation.

Threats

Increasing competition is the most powerful threat that the company is facing different rental services such as Amazon and other online streaming services are killing its customer base. HBO services are also offering their services without the television subscription and cbs network has also announced subscription service which is upcoming as a threat for Netflix.

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