Netflix - Strategic Plan

2238 words 9 pages
Show More
Netflix.com - Strategic Plan

Netflix is the world’s largest online entertainment subscription service, providing more than U.S. 4 million customers with access to over 100,000 DVD titles. Netflix’s business is renting DVD titles on a subscription basis, with different plans ranging from $9.99 a month to $47.99 a month. Nearly 95% of Netflix subscribers are within a one day ship point, which means most customers will receive the movies within one day of ordering. Their deep movie selection, personalized recommendations, and quick delivery have made Netflix the top-ranked Internet company in customer satisfaction, which has driven rapid growth in subscribers, revenue and earnings (Netflix, 2008).
Netflix started out as a regionally …show more content…

“A company’s marketing strategy is an important tool that works with its Web presence to get the company’s message across to both its current and prospective customers” (Schneider, 2004, p. 155).
To build national brand awareness, Netflix uses every method of e-commerce marketing available to them. The company markets its service by purchasing pay-for-performance banner advertising from Yahoo, MSN, and AOL. It uses search engine marketing and pay for placement ads on major search engines and it also used permission-based e-mail. It developed an active affiliate marketing program where third parties can automatically download Netflix ads and logos, place them on their sites, and collect revenues for steering customers to Netflix. The company has also entered into a relationship with Best Buy to place Netflix flyers, offering a free 14-day trial of Netflix’s service, inside every DVD player Best Buy shipped. In addition, the company offers 14-day free trial periods on its own website. Netflix makes use of conventional multimedia, as well; running ads on television, in magazines, and in newspapers.
Netflix is using the same marketing channels to promote the digital delivery service offering that it uses to promote its mail-based Internet rental business. On Netflix.com, under the ‘How it Works’ tab the customer can see that Netflix offers digital delivery. The customer will have access to more detailed information about digital delivery

Related

  • Mission and Vision Statement-Netflix
    889 words | 4 pages

    BMGT- 495 Strategic Management Part 1 For my analysis of mission and vision statements and company’s strategic direction paper, I decided to use Netflix. Netflix mission statement is "Our core strategy is to grow our streaming subscription business domestically and globally. We are continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interface and extending our streaming service to even more Internet-connected devices, while….

    Show More
  • Netflix Case Study
    972 words | 4 pages

    rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes. Assignment Questions 1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. Threat of New Competition: Netflix has almost zero threat of new competition. Any new competition would have to overcome large capital….

    Show More
  • Blockbuster Swot Analysis
    1566 words | 7 pages

    Downtown Dallas, Texas.[1] Because of competition from other video rental companies like Netflix, Blockbuster has seen significant revenue losses. The company filed for bankruptcy on September 23, 2010. Strengths * Lead market share of online rentals * Low fixed costs * Worlds largest selection of DVDs * Fastest delivery time of any online DVD rental company with over 35….

    Show More
  • Best Buy Internal and External Analysis
    5766 words | 24 pages

    Internal Analysis: Core Competencies, Strengths and Weakness The (RCC) / VC model is used to determine how Best Buy bundled its resources to create capabilities and how these capabilities become the company’s core competencies which will be their source of competitive advantage. TANGIBLE RESOURCES Financial Resources - Revenue growth slowed to a miniscule 1.6% over the course of fiscal year 2011. - Domestic revenue reaches $37.1 billion while International revenue reaches $13.1 billion in 2011.….

    Show More
  • Netflix Case Study
    8852 words | 36 pages

    21 SWOT Analysis 23 Value Chain Analysis 29 Competitive Strength Assessment 30 Strategic Issues and Obstacles 31 Alternative Courses of Action for Success 31 Recommendations 31 Implementation 32 Works Cited 36 Appendices Corporate Officers A Online Movie Industry Market Share B Renting Process Flow….

    Show More
  • Strategic Analysis of Itunes
    3686 words | 15 pages

    Music Industry Plan Student course: Business Management Module: Strategic Management Name of lecturer: Words: =3541 Submission date: 31/08/2012 Table Of Contents 1. Introduction 2. Strategic Position 2.1 The Music Industry 2.2 SWOT 2.3 Apple vision and values 2.4 Business and Social Responsibility 2.5 Market Segmentation 3 Strategic Purpose….

    Show More
  • Imax Case Study
    5601 words | 23 pages

    IMAX Case Study Malika Drumgoole Frank Thomas Rondell Rush Donte Rucker Amadou Berete Deshantelle Rogers Seminar: Issues in Management Instructor: Dr. Yao October 14, 2011 Abstract IMAX is in a dilemma as to whether it should be sold to other giants such as Sony, Disney or Time-Warner. The general environment of the movie industry is discussed. Porter’s five forces model is used to help identify the opportunities and threats for IMAX. An explanation of how the resources….

    Show More
  • Facebook, Strategic Management Analysis
    2628 words | 11 pages

    speed of changes in that particular environment, an environmental scan is likely to help identify possible ventures, challenges, and developments that are important to the organization. An organization that could benefit tremendously from strategic planning and especially….

    Show More
  • Strategy Management Hmv
    4111 words | 17 pages

    competitive strategies. In this analysis we will take a look at the biggest entertainment media seller with physical stores in the UK. The contents of the report are an analysis of the company’s current competitiveness and recommendations on the future strategic direction of the company. Introduction With the rise of digital media and broadband capabilities, many brick and mortar sellers are faced with challenges to sustain a competitive advantage. Not more than a decade ago customers who were….

    Show More
  • Chapter Questions and Answers
    8600 words | 35 pages

    E-Business Ch. 6 – 10 Assignments Chapter 6 Questions 1) Is growth of the internet, in terms of users, expected to continue indefinitely? What will cause it to slow if anything? Internet growth is now currently slowing. This is because of computer costs. Unless the price of computers drop significantly the internet growth rate will continue to decline 3) Would you say that the Internet fosters or impedes social activity? Explain your position. I would say both. The Internet probably both….

    Show More

Popular Essays