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Hi, I am looking for someone to write an article on strategic analysis of netflix Paper must be at least 1750 words. Please, no plagiarized work!
Hi, I am looking for someone to write an article on strategic analysis of netflix Paper must be at least 1750 words. Please, no plagiarized work! Growth opportunity for Netflix is dependent on Subscriber Acquisition Costs (SAC), churn rate and Average Revenue Per User (ARPU). Lack of switching cost has decreased ability of Netflix to control above mentioned three verticals. Opportunity Threat Netflix has already entered into digital distribution of video content in order to create a bridge between physical DVD formats and digital streaming. Netflix has already established strategic partnership with Microsoft in order to launch “Netflix compatible Xbox”. such product diversification strategy will definitely open new revenue earning paths for the company. Many customers prefer to watch movies on premium movie channels such as HBO, Showtime, Starz and Cinemax instead of renting movie from Netflix. HBO has launched HBO Go which is a video streaming service in order to increase competitive threat for Netflix (Thompson, “Netflix's Business Model and Strategy in Renting Movies and TV Episodes”). Porter 5 Force Analysis According to Michael Porter (1980, 1985) five force frameworks is a useful tool to understand competitive advantage associated with a particular industry. The study will use five force frameworks in order to understand competitive scenario for Netflix. Threat of New Entrant Attractiveness of the DVD renting industry has decreased for new entrants due to involvement of high cost related to acquisition of distribution rights from studios such as Time Warner, Sony Pictures and Universal Pictures. However, capital cost regarding setting up “brick and mortar” shop has decreased due to increase in online distribution of DVDs. Exit cost for the industry is dependent on capital investment done for establishing brick and mortar shop.