MSCI 2130 Chapter Notes - Chapter 4: Set-Top Box, First-Sale Doctrine, Netflix
26 Mar 2017
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Document Summary
Started as a dvd rental business: known for best-in-class service. Rightly surmised that digital streaming is the future. Attempting to maintain industry dominance even as technology fundamentally restructures the dynamics of the business: netflix hasn"t just survived, it has thrived. By going public, netflix had to disclose its financial position: resulted in two big competitors entering the market: blockbuster and walmart. Netflix maintained its lead in the market with: constant customer and revenue growth, record profits, rising stock price. Brands are built through customer experience: walmart and blockbuster could create brand awareness but couldn"t translate that into an industry advantage. Netflix remained segment leader as it had: an early market entry, effective execution. Netflix"s nationwide network of automated distribution centers collectively delivered. Dvds overnight to a large percentage of the population. Netflix"s advantage came from the scale of the firm"s selection.
