Netflix Case.docx

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Information Technology Management
ITM 102

Netflix Introduction: Established in 1997. Netflix is an on demand Internet streaming media. Netflix Canada  offers unlimited movies and TV episodes over the Internet on your TV via PS3, Wii,  XBOX 360 or any other Netflix enabled device. Or you can watch on your computer. Prepare your answer in a written report, with introduction, body and conclusion. Use appropriate organization, proper grammar, formatting and with correct spelling. (4% of marks) 1. a) What are the products and /or services? - products = a selection of movies and tv episodes. With a low rate of $7.99 a month, you can watch and stream unlimited movies that is offered by Netflix. There’s no commercials and you can pause, rewind or forward anything you want to watch. - In the states: Netflix actually rents out hard copies of dvds (ask prof about if we have to know the states too) - They also make Netflix original web series such as “house of cards”. This is Netflix only, original programming this was put on Netflix in march 2013 2. Who are their competitors? - Amazon is their biggest competitor as well as partner. Amazon has “Amazon prime”. Also, HULU video is a big competitor. Amazon locks you in on a one year fee for 79$ and Hulu offers the same price as Netflix, $7.99 per month however it does not have as much selection as Netflix . 3. What is their strategy to compete? - Netflix has a differentiation/cost leadership strategy as their target scope is broad and they offer a faily unique service to their customers, they were one of the founders to penetrate the video streaming on the internet and they give a low cost alternative to a traditional video rental store. Also, because it’s unlimited watching, if you got the time, you can watch a lot of videos. 4. What is their value chain? - support value activities : firm infrastructure and technological development.
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