Netflix Essay Example | Topics and Well Written Essays - 1000 words

Netflix - Essay Example The first part of this paper will analyse Netflix products, its competitors, the company’s competitive strategy as well as its value chain. Part two of the paper will evaluate how Netflix applied art and science through various information communication technologies to boost its operations. Netflix products Netflix has more than 33 million subscribers in 40 countries that can rent DVDs or download movies for a monthly fee through Netflix.com. The company also has mail delivery services where movie deliveries takes place through the US Postal services from distribution centers that are located in the major cities in the country. More so, the movies streaming reaches800 devices that include PCs, TVs, and mobile application (Nelson and Quick, 2012). This means that the company’s products and services are DVD vending, and selling physically and through the internet, mail delivery services and video demand services online. ... The other competitors Amazon prime, who freely ships on millions of items and rented eBooks. The problem that Amazon prime has is that customers are required to purchase an entire year of prime for $ 79; hence discouraging customers (Nelson and Quick, 2012). To add up the competitor list is HBO GO owned by Time Warner, who offers unlimited access via website login. In spite of HBO Go great web interface, it still tethers to the cable networks. Vudu, Wal-Mart partner has also joined the industry, adding up the competitor list and it allows subscribers to stream instantly on Walmart.com. What is Netflix competitive strategy? The main competitive strategy that Netflix uses to beat competitors is product differentiation. This is the case because the company offers old products (movies) in new modernized ways. For instance, the company still mixes the old mail delivery and online streaming in movie delivery, which helps it target diverse customers (Nelson and Quick, 2012). This is excepti onal because no other company in the industry uses the old mail delivery; hence creating a differentiation. This strategy not only creates a differentiation to the customers but also eases customer’s delivery of movies because most customers get the movies at the comfort of their homes through mail and still return them through the same mail. This convenience is a great attraction to customers who end up becoming loyal to Netflix. Netflix value chain analysis Every business should look forward to reducing logistical costs as well as perceptive sales, which eventually keep the company viable. Netflix has strategically organized its value chain because it is cable to accurately, forecast demand given that