Another weakness is inventory costs. There are even some new smartphones that allow you to download a Netflix app on them to watch on the go. Weaknesses One weakness is customers cannot get their movies immediately; they have to wait for the mail to arrive.
Some other companies, like Wal-Mart and Amazon, tried an online model as well. Hollywood Video developed the Movie Value Pass inwhere customers were allowed to rent up to three movies for a flat monthly fee.
Finally, after more than five years in business, Netflix, Inc. The second strength is very competitive prices. They have great customer loyalty, a large distribution system with many centers to keep up with their 1. This company just continued growing, by the summer of they hadsubscribers, offered 11, different titles, and signed revenue-sharing agreements with more than 50 film distributors.
Some advantages that a traditional rental store has are that customers can get their movie on the spot and they do not have to pay a monthly fee.
This is beneficial to people who do not watch a lot of movies. Threats One major threat is other streaming offerings such as Hulu and YouTube. Just about anyone with a lot of money can get licenses on content and provide this service.
It also includes anyone who has a gaming system like, PS3, Wii or Xbox.
Another great opportunity is that Netflix will soon begin offering video game rentals to their customers. For just a bit more, a higher number of DVDs can be out at a time or both customers can have the option of both DVD and streaming, giving users more flexibility.
Netflix needs to stay competitive in this area with pricing and with a good selection of movies to choose from. This is less expensive than paying for cable movie channels, while giving the customer more selection.
There is also Blockbuster who came out with a similar online DVD rental system in Market The Netflix market includes anyone who is interested in watching movies.
They also started opening more and more distribution centers to keep up with their overwhelming demand from customers at this time.
It looks like Netflix, Inc. By February ofNetflix had one million subscribers. Opportunities With all the new development of network technology, NetFlix will soon provide the service of allowing customers to download movies on the Internet in the near future.
This new feature will save NetFlix a lot of money in packaging and postage fees and will also give more customer satisfaction because of no wait times for movies. Customers can select movies and put them into their rental queue, edit them anytime they choose and they can keep the movies as long as they want without the hassle of due dates.
Another threat to Netflix is traditional rental stores.Marketing Plan Netflix Essays Marketing Plan 1 Situation Analysis Company Background: Netflix, Inc. is the world's leading DVD rent-by-mail company. The Company was created by Reed Hastings and Marc Randolph in in Scotts Valley, CA.
Netflix core product is a killarney10mile.com marketing plan will focus on online streaming service. Netflix history Netflix was incorporated in Delaware in August and started its subscription-based digital distribution service in This aspect alone of Netflix’s marketing plan indicates that Netflix has based their marketing plan on market orientation, “a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product,” (Lamb,p.7).
Free Essay: Marketing Plan 1 Situation Analysis Company Background: Netflix, Inc. is the world's leading DVD rent-by-mail company. The Company was created by. Marketing Plan Netflix Essay Marketing Plan 1 Situation Analysis Company Background: Netflix, Inc.
is the world's leading DVD rent-by-mail company. The Company was created by Reed Hastings and Marc Randolph in in Scotts Valley, CA. Because of this, Netflix needs to build a plan of action that differentiates its product above and beyond price.
With that understanding, the company will have to prove customers that Netflix is more beneficial than its major competitor, Blockbuster.Download