Table of Contents Company and Background....................................................................................................................................4 Rationale..................................................................................................................................................................4 Target Audience.......................................................................................................................................
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| 2012 | | Prof. Gervais Victoria Skarbinski | [Netflix] | A case analysis on the movie rental company Netflix. | The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system. Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent. Netflix’s strategy so far has included offering various plans that incorporate
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| 2012 | | Prof. Gervais Victoria Skarbinski | [Netflix] | A case analysis on the movie rental company Netflix. | The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system. Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent. Netflix’s strategy so far has included offering various plans that incorporate
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over 9,000 stores in 2002 (over 5,000 in the United States) and boasting $6.1 billion in sales (Blockbuster Inc., 2005)” (Abraham, 2012 p.1.8). When Netflix and Redbox came into the mix of home viewing entertainment, Blockbuster lost significant revenue with its stability beginning to weaken. In 1997, Netflix started followed by the Redbox, which entered into the competition in 2002. With both of these up and coming viewing franchising gaining popularity among consumers Blockbuster was forced to file
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featured a store close to every large neighborhood in the country (“Blockbuster Inc.,” n.d.). Currently, Blockbuster is still facing struggles in the video rental industry but is working to compete against its newer main competitors, Netflix and Redbox (Merced, 2010). After filing for bankruptcy in late September of 2010, Blockbuster was purchased by Dish Network in hopes to save the company and reposition it as necessary (Merced, 2010). The company will apparently be closing a large number of
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Movie Rental Industry: Blockbuster Case David Cook founded Blockbuster video in 1985, opening the first store in Dallas Texas and has grown to become the world's number one video chain. Mr. Cook took the idea of video rental and improved it by creating the video superstore concept. Many family-owned video rental stores could not compete against Blockbuster' stores. Blockbuster stores were highly visible stand-alone structures that appealed to customers. Blockbuster His stores had a wider selection
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Video rental industry Definition: Branch of the entertainment industry that engages in renting prerecorded video material for home and personal viewing Significance: After starting in 1979 with a single retail outlet in Los Angeles, the video rental industry boomed during the 1980’s and became a fixture in consumers’ spending during the 1990’s, grossing an average of $1 billion yearly. With the arrival of digital versatile discs (DVDs) and the Internet during the 1990’s, the industry experienced
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Summary The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes. Assignment Questions 1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. Threat of New Competition:
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SWOT ANALYSIS Strengths: • Loyal Customer Base Netflix built their business around understanding and meeting their customer’s needs even before the customer realized the need. They have done this by exploiting the weakness of the competition. These weaknesses included: late fees, DVD shortage, and having to wait for a movie to download rather than stream instantly. Netflix built their customer loyalty around taking the competitors weakness and making it their strength through strong marketing
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Netflix’s Business Model and Strategy in renting Movies and TV Episodes Reed Hastings, founder and CEO, launched Netflix as an online rental movie service in 1999. Netflix is a company that distributes movies and television by streaming online and mail delivery. There are eight different membership
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