Netflix Internal Environment Analysis

7315 Words 30 Pages

NETFLIX, INC. 1 Company Images Montage 1

INTRODUCTION 2 Purpose Statement 2 Company Profile: Netflix, Inc. 3 Industry Profile: Video Tape and Disc Rental 4
INTERNAL ENVIRONMENT ANALYSIS 8 Resources 8 Capabilities 11 Core Competencies and Distinctive Competencies 14 Value Chain Analysis 17 Weighted Competitive Strength Assessment 30 SWOT Analysis 33
APPENDIX 36 Team Evaluation Form 37

Company Images Montage


Purpose Statement

The purpose of this report is to analyze the internal environment of Netflix, Inc., within the Video Tape and Disc Rental industry. To begin this
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DVDs in Blu-ray and HD [High Definition] formats are offered by Netflix to consumers who demand more out of their home entertainment experience. One of the most critical features offered by Netflix that got the company recognition and market share is that it caters to a wide selection of people from different geographical locations and demographic groups. The variety of movies offered by Netflix, vis-à-vis its competitors, is unmatched. With the technical help provided by the company Web site combined with software that tracks and provides consumers with useful information, Netflix enjoys a competitive parity advantage in this regard. One of the main reasons Netflix enjoys this advantage is because it was the first in the market to come out with a DVD rental system that does not involve late fees, but rather includes a fixed monthly subscription fee and a software that provides assistance in simplifying the processes for the end …show more content…
More than 90 percent of members receive their movies with generally one-day service. Netflix operates 41 shipping centers geographically dispersed throughout the United States - key to providing overnight delivery - and plans to open additional shipping centers. Netflix on the average handles and ships 1.4 million DVDs each day (Netflix Overview, 2006).

Netflix started with one distribution facility located in the San Francisco Bay area of California, back in 2000, but realized that in order to sustain customer satisfaction, the company needed a very aggressive expansion plan to build regional distribution centers across the country. Netflix's ultimate goal was to provide 75 percent of its growing customer base with generally overnight delivery service by the end of 2003.
• 2002 - Netflix opened two regional shipping centers every couple of months.
• 2003 - Netflix expanded the distribution centers in every direction. Locations included facilities in New York, Pennsylvania, Oregon, Florida, Illinois, Missouri, New Jersey, North Carolina, Ohio, and Arizona.
• 2004 - With popularity of the online DVD rental service on the rise, Netflix opened additional distribution centers in existing areas to help continue with providing its next-day delivery promise. Areas that received centers included Florida, Nevada, Kentucky, Missouri, Pennsylvania, and

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