BU415 Chapter Notes - Chapter 4: Switching Barriers, Oligopoly, Recommender System

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16 Sep 2014
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Reed hastings ceo of netflix has been appointed to the board of directors of two of the tech industry"s most influential firms microsoft and facebook. Netflix"s profits, customer base, and stock have each hit an all-time high. Hastings is correct in understanding that digital streaming is where consumers, technology, and the industry are headed. Gives us a chance to examine how technology helps firms craft and reinforce a competitive advantage. While netflix emerged he victorious underdog at the end of the first show, there will be at least one sequel, with the final scene yet to be determined. A highly successful firm can still be challenged by technical shifts. Netflix started out as a dvds-by-mail business and then shifted to streaming. The firm now only offers its streaming-only subscription as the default option for consumers. Act i: david becomes goliath: crafting killer assets for dvd-by-mail dominance.

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