Although Netflix has had maintained a competitive advantage for a long time, it is evident that its competitors are working hard to grab a substantial market share. Organizations that want to develop and maintain competitive advantage have to devise ways of developing a strong brand name by offering quality products or services (Kasabov and Alex 21). Innovative ideas have made Netflix competitors such as Redbox, Amazon, Apple, Hulu, and google play to offer competitive products that threaten the success of Netflix. In addition, these competitors use innovative marketing strategies that attract more customers. For instance, during the recession, Redbox managed to acquire more customers by introducing cheaper products that were sold by Netflix at a higher price. New releases that were expensive were rented fairly by Redbox. The company also started to offer streaming services because of the increased demand. Such strategies pose a great threat to Netflix which has the largest market share.
At what speed should Netflix abandon the DVD market?
Netflix should abandon the DVD market as soon as possible in order to venture into the streaming market. With the continued technological innovations, people’s way of consumption has been changing at a high speed. Things that were traditionally done using old ways and old technologies have been slowly eliminated from the market. With the use of smartphones, people can watch any video they want by streaming from different platforms. While other companies partner with companies that are not in the same line of business to market their products, Netflix should also do the same thing and ensure that all of its old technologies and products have been replaced with the most recent ones (McGrath and Alex 8). Failure to do so can lead to a situation where most of the customers will be attracted to its competitors, thus losing its competitive advantage.
How can viewership data help Netflix doing business?
Viewership data can help Netflix uplift its performance because it acts as a way of marketing. When people viewership increases, it is an opportunity for Netflix to introduce its new products that attract go in line with customers’ needs. Another way to benefit from the viewership data is by concentrating on the needs of the customer and offering cheaper products. If the viewership goes down, it is an indication that customers might have migrated to other companies offering the same products (Kasabov and Alex 24). Therefore, such a data can help Netflix to come up with new strategies that can help it to improve. High viewership indicates that the company is performing well and can help the company to devise ways of maintaining good performance.
Any standalone products that can build the experience?
Netflix offers a wide variety of products to acquire a large market share. Therefore, there is no standalone products can be used to build the experience that can make the company better. There is a need to concentrate on improving all the products it offers to continue commanding the large market (McGrath and Alex 10). Concentrating on single products gives an opportunity to its competitors to concentrate on other products. Concentrating on one product can only work for a new entrant to the market but not to a company like Netflix that has been in the market for a long time offering a variety of products. However, the company can evaluate its entire products to ascertain the most effective one in order to find ways of giving it more attention.
Kasabov, Edward, and Alex Warlow. The Compliance Business and Its Customers. New York: Palgrave Macmillan, 2012. Print.
McGrath, Rita G, and Alex Gourlay. The End of Competitive Advantage: How to Keep Your Strategy Moving As Fast As Your Business. Boston: Harvard Business Review Press, 2012. Print.
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