Case Study: Place Your Bets: Netflix Versus the Field in DVD Rentals
Answer to the Application Question no.1 :
Netflix Core Competency:
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Providing monthly subscription facilities.
Providing a choice to make an order list.
Not charging any late fees and customers can keep the products as long as they need.
Providing the products to the customers’s hand as early as possible to make sure of cost. effectiveness and time efficiency.
Providing “Watch instantly” feature to its eligible customers.

Netflix strategic Asset:
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Is highly experienced business since it launched 1997.
Has a collection of 100 000 DVDs.
Has a features of personalized video recommendation system based on ratings and reviews.
Introduced Set-Top box with the help of Roku Inc.
Plan to sell LG brand DVD players for downloading and watching movies on TV through Netflix.
Has a brand name and a popular business model that was followed by Walmart and Blockbuster.

Some Strategies of Netflix’s business model that hard to imitate:
 Netflix follows “Cost Leadership Strategy” as it has not charged any addition cost of watching movies instantly for their subscribes.
 Netflix is also using “Differentiation Strategy” as it has introduced Set Top box and DVD players.  Netflix has built a partnership network to Roku Inc. and LG.
Those things are really hard to imitate by the competitors of Netflix.

Answer to the Application Question no: 2
Some advisable things that I would want to tell:
 Netflix should introduce Brick-and-Mortar system besides its traditional online DVD rental
System.
 Netflix should give a chance to someone who wants to grab a movie on a whim for $1/day.
 Netflix should give a chance to the advertising companies to advertise their products so that
Netflix can earn some extra money.
 Netflix should offer instant gratification