Logih MyMarke 5.pdf 1 / 10 In the face of changing technology and shifting custo

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Logih MyMarke 5.pdf 1 / 10 In the face of changing technology and shifting customer preferences with respect to movie distribution, video rental giant Blockbuster fell to its competition. Meanwhile, Netflix has grown to become the top rent-by-mail and video streaming company, while other strong competitors have emerged to dominate movie distribution via kiosks (Redbox) and online (Apple, Amazon, Hulu, and others). Looking to the future, Netflix's survival depends on its ability to adapt to and adopt new technology and marketing practices-issues Blockbuster failed to navigate due to its reactive, rather than proactive, stance toward a rapidly changing market. Netflix faces an uncertain future as the DVD rental sector approaches the end of its life cycle. However, the company is poised to dominate the video streaming sector for the foreseeable future. The problem is, the future changes rapidly in this industry. Synopsis: Themes: Changing technology, changing consumer preferences, competition, competitive advantage, product strategy, product life cycle, services marketing, pricing strategy distribution strategy, non-store retailing, customer relationships, value, implementation echnology has played a leading role in the evolution of the movie and rental industry. Several of the major movie production companies have now opted to bypass the theatre experience and instead promote a selection of their movies directly to the home viewing audience via on-demand services, broadband downloads, or online streaming. Through increasing disintermediation (bypassing theaters and rental chains), movie studios stand to increase profit margins dramatically. Today there are at least 20 major competitors in the sales and rental industry that compete with Netflix. These include major retail firms such as Walmart, Target, Best Buy, Amazon, and Time Warner. In the rental sector, Netflix faces intense competition from Redbox, and a variety of online-only services such as Apple, Amazon, Google, and Hulu. Netflix's History CEO Reed Hastings told Fortune he got the idea for the DVD-by-mail service after pay ing a $40 late fee for Apollo 13 in 1997. Although VHS was the popular format at the time, Hastings heard that DVDs were on the way, and he knew there was a big market waiting to be tapped. At first he and fellow software executive Marc Randolph attempted "Kelsey Reddick, Florida State University, Jacqueline Trent, University of New Mexico, and Jennifer Sawayda, University of New Mexico, prepared this case under the direction of Michael Hartline and O.C. Ferrell. This case is for classroom discussion, rather than to illustrate either effective or ineffective handling of an adminis trative situation. ase 7 Mistine.pdf A Case 15 Netflix.pdf ) O - O Provide A Detailed Di.- @ Case 15.pdf-Google- w! CommunityCare Healt.- x1 os PrtScn F1 F2 F3 F4 FS

Explanation / Answer

1 - The Redbox expertise in the Physical DVD's, Bluerays and Video game rentals, seeing the current trends, it is the market leader in its format, There would be hardly any changes in the Netflix strategic plans as the major base of the Netflix's customers view the titles online via online streaming and the online market is growing at the high speed.

2 - The New competition from the digital streaming providers, would require Netflix to change the strategies accordingly to be at the top in the business. Netflix would have to rework on the pricing so that t is at par with the competition and provides the maximum value to its customers, plus it would have to build one of the largest libraries for the digital content, which would include developing the content by themselves.

3 - There are a huge number of opportunities in the movie industry as a whole, as the number of the online user base has increased, there has been a huge growth in the viewership, hence requirement of huge content is generated. Hence new opportunities come in new content development, then the whole chain would grow, the cinema would earn more, the digital streaming service would see subscription growth and advertisement industry would grow.

4 - Netflix would remain the dominant force in online services but not the physical ones, as the customer base of Netflix is more in streaming services, Redbox dominate Netflix in the Physical format, Plus the online library is much more bigger and with it creating its own content at providing the end-consumers at a competitive price, it is destined to be at top of online services

5 - The biggest mistake of Netflix is to separate itself from the physical format, which was the founding bases of the Netflix. The Netflix could have dominated if the combined services would have been continued with a meagre price rise. This would have helped Netflix to retain the customers it lost.Plus it could have ventured into small kiosk business, which may have had little more operational cost than the traditional Netflix way, but could have helped in conquering the Market.

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