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Business Strategy Class, Group Assigned A Case Case Study

¶ … business strategy class, group assigned a case study. It a 12-20-page paper, responsibility write 4 pages, part write. Here teacher instruction: "A case study assigned group. Additionally a rubric showing material case study included. Competitor analysis:

Strengths, weaknesses, and strategies of key industry rivals

Evaluate and discuss situation

When Netflix originally broke into the movie rental market, its main rival was Blockbuster, Movie Gallery and independent video rental companies. Netflix offered what was then considered a unique business model of blending a subscription service in which customers would receive DVDs in the mail coupled with streaming content. The awkwardness of the free-standing Blockbuster store has been replaced with a marketplace of competitors offering different ways to more conveniently access films at home. By 2010, Netflix's list of competitors had expanded. For example, Redbox 'kiosk' service did not bring DVDs to customer's doors, but it did allow them to access films very easily from widely available red boxes located in stores. Direct TV and EchoStar enabled customers to access films without leaving their living room chairs. Telecommunication providers, online retailers like Amazon, online rental websites, and even free sources such as YouTube all offered ways in which consumers could watch a wider array of movies at lower cost than the previous generation's rental model.

Competitor analysis of strengths, weaknesses, and strategies of key industries rivals

As a rival, Blockbuster's name is extremely tarnished, and associated with a much older form of accessing films. It is a financially fragile institution, having recently gone through bankruptcy. Its reputation as an online subscription website does not offer any substantial innovation or cost savings, compared with Netflix, and Netflix offers streaming options and DVD rentals simultaneously, making use of two relatively innovative forms of access, in comparison with its rival. The lack of traction of the Blockbuster model is further underlined by the fact that another of Netflix's rivals, Movie Gallery, completely folded.

In contrast to Blockbuster...

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With Netflix, a consumer must be a subscriber to obtain access to its DVDs. Redbox is modeled more on the traditional pay-as-you-go plan once favored by Blockbuster. Unlike Blockbuster, rather than offering stand-alone stores, Redbox locates its kiosks conveniently in 7-11s, grocery stores, and other places that many people frequent every day. A consumer can patronize the kiosk impulsively, and the $1-a-day price tag requires less commitment and is less hard on the wallet than subscribing to Netflix. While there is a similarity between the Redbox business model and the outmoded Blockbuster model on one hand, on the other hand Redbox is much cheaper than Blockbuster's $4 rental fees. For consumers who are not dedicated cinephiles and for whom Netflix's more extensive offerings are not particularly attractive, Red Box offers an affordable and easy way to watch popular films at low cost, without making a detour to a specific store.
But for some consumers, the lure of downloading is simply too great and too easy to be forsaken. Amazon On Demand allows consumers to directly download films onto digital devices. This allows consumers to be more selective about the movies they consume, versus paying to gain access to a generalized subscription service. For consumers who are not 'volume users' but want the convenience of downloading not provided by Redbox and a wider selection of films, Amazon may seem like the optimal service. The popularity of the Kindle has further solidified Amazon's reputation as a media portal -- the dominant media portal for many users. Unlike Redbox and conventional DVDs, Amazon on Demand could be streamed directly to handheld devices -- a great plus for time-pressed commuters who wish to entertain themselves on subways and trains, or even people who 'sneak' viewing content at school or work.

Apple provides a similar rival service on its devices to Amazon. Apple TV allows consumers to watch television, movies, and even obtain access to Netflix streaming content. Apple TV's cache partially derives, no doubt, from the image of Apple. Many Apple loyalists will use something just because it is Apple. Apple's…

Sources used in this document:
References

Stone, Brad. (2009). Amazon Video vs. Netflix: Which will prevail? The New York Times.

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http://bits.blogs.nytimes.com/2009/11/04/amazon-video-vs.-netflix-which-will-prevail/
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