Netflix
By: Fonta • Case Study • 302 Words • November 23, 2009 • 1,115 Views
Essay title: Netflix
Strengths:
• Subscription-style e-commerce service- low monthly fees enables Netflix to compete with Blockbuster
• Established leader in the growing Home Entertainment Market and Internet
• Less overheard compared to video rental stores- no storefront means- less employees are hired.
• Established consumer base- that looks at Netflix as a mean of convenience.
• No Late Fees- No line ups
• Customers have unlimited access to the largest movie database, more of a selection compared to other video stores.
• Easy to navigate website. Customers can find their favorites in minutes.
• First-Move Advantage- they are the first online DVD store
Weaknesses:
- Not economical for consumers who watch less than one movie a week, although its inexpensive and convenient
- Customers cannot get the movies immediately have to wait until they arrive
- Inventory Control- movies might arrive late, or get lost during delivery which will result in loss of customers.
- Although DVDs are unlimited- customer is only allowed a certain out at a time.
- Slow process in shipping/receiving movies