Jones International University
MBA 505 Assignment 7.2
Nancy Saulsberry
a. What role will Redbox and other competitors play in the development of Netflix’s strategic plans? How threatening are these competitors to Netflix’s future? Redbox, and other competitors will play a role of keeping Netflix progressive and push them to constantly achieve and strive for a fresh format. The competition will be forcing Netflix to offer more appealing streaming content for current network programming and or offering services at more competitive pricing. The competitors that are competing for the market share are Hulu, Google Play, Windows Media Player and Amazon. According to Farrell & Hartline (2014), “While Netflix might …show more content…
Will new competition force Netflix to alter its strategy? If yes, what are the offensive strategies for Netflix? If not, what are the defensive strategies for Netflix? Explain in detail.
Yes, this has already happened with the emergence of Redbox in the market several years ago. So Netflix already expects this and they are constantly working on new strategies in order to maintain their competitive edge. For offensive strategy Netflix could partner with Apple or AT & T to encourage stronger commitments on the I-phone and Android so that consumers could stream video on their handheld devices and eliminate the need for cable television or satellite all together. I see Netflix as a strong contender in the streaming of digital format to replace cable and rental of movies from Redbox in the future. By also offering the lower cost streaming and improving the current line up options for viewers, people will slowly but steadily switch to their service. Another thought is that Netflix will begin premiering blockbuster hits at a higher price to offer people the opportunity to watch a new movie for less than the cost of the theater ticket. As prices increase this is an offensive strategy that could position Netflix well for increased profit and market …show more content…
Consumers did not appreciate the way it was introduced to the market or current customer base at Netflix and therefore fled by cancelling their subscriptions’. Netflix would have been better favored had they initially conducted some customer surveys prior to the introduction to the customer base. They also would have done better had they not bundled the package in with the streaming account. Hastings new he had made a fatal error within a few days as subscribers dropped by the thousands. In addition, they could have opened the company under another name related to the Netflix brand name instead to have introduced it as a complimentary trial based service for existing subscribers. It was an idea that was simply unsuccessful because it was introduced at a weakened time in the economy when Americans were really starting to feel the full effect of the stock crash and jobs were scarcer. In addition, by charging double for the added service instead of offering the service at a minimal additional charge they offended people and Americans rebelled
MBA 505 Assignment 7.2
Nancy Saulsberry
a. What role will Redbox and other competitors play in the development of Netflix’s strategic plans? How threatening are these competitors to Netflix’s future? Redbox, and other competitors will play a role of keeping Netflix progressive and push them to constantly achieve and strive for a fresh format. The competition will be forcing Netflix to offer more appealing streaming content for current network programming and or offering services at more competitive pricing. The competitors that are competing for the market share are Hulu, Google Play, Windows Media Player and Amazon. According to Farrell & Hartline (2014), “While Netflix might …show more content…
Will new competition force Netflix to alter its strategy? If yes, what are the offensive strategies for Netflix? If not, what are the defensive strategies for Netflix? Explain in detail.
Yes, this has already happened with the emergence of Redbox in the market several years ago. So Netflix already expects this and they are constantly working on new strategies in order to maintain their competitive edge. For offensive strategy Netflix could partner with Apple or AT & T to encourage stronger commitments on the I-phone and Android so that consumers could stream video on their handheld devices and eliminate the need for cable television or satellite all together. I see Netflix as a strong contender in the streaming of digital format to replace cable and rental of movies from Redbox in the future. By also offering the lower cost streaming and improving the current line up options for viewers, people will slowly but steadily switch to their service. Another thought is that Netflix will begin premiering blockbuster hits at a higher price to offer people the opportunity to watch a new movie for less than the cost of the theater ticket. As prices increase this is an offensive strategy that could position Netflix well for increased profit and market …show more content…
Consumers did not appreciate the way it was introduced to the market or current customer base at Netflix and therefore fled by cancelling their subscriptions’. Netflix would have been better favored had they initially conducted some customer surveys prior to the introduction to the customer base. They also would have done better had they not bundled the package in with the streaming account. Hastings new he had made a fatal error within a few days as subscribers dropped by the thousands. In addition, they could have opened the company under another name related to the Netflix brand name instead to have introduced it as a complimentary trial based service for existing subscribers. It was an idea that was simply unsuccessful because it was introduced at a weakened time in the economy when Americans were really starting to feel the full effect of the stock crash and jobs were scarcer. In addition, by charging double for the added service instead of offering the service at a minimal additional charge they offended people and Americans rebelled