Netflix: The US DVD Rental Company's Competitive Strategies


Code : COM0054

Year :

Industry : Internet and e-commerce

Region : USA

Teaching Note:Available

Structured Assignment :Available

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Abstract: Los Gatos (California)-based Netflix Inc, was the world's first and largest on-line DVD rental firm. The company, with its innovative business model, emerged as a strong player in the DVD rental industry.

The convenience of ordering on-line and savings from late fees of the traditional video rental companies helped the company garner a huge customer base.

As the on-line DVD rental model gained popularity, Netflix began to pose a threat to the established players like Blockbuster Inc. and Hollywood Entertainment Corporation.

Gradually, traditional video rental companies like Blockbuster and retail giants like Wal-Mart and also entered the on-line rental bandwagon.

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Pedagogical Objectives:

  • To discuss the innovative business model of Netflix and how the business model posed a threat to traditional video rental stores
  • To understand the initiatives taken by Netflix to retain its market share in the light of the increasing competition from much bigger rivals like Blockbuster and a threat of substitution from video-on-demand services.

    Keywords : Netflix's business model, Competition from Blockbuster Inc, On-line DVD rental market, Business model innovation, Threat of substitution, Competitive Strategies Case Study, Competition from video-on-demand services

    Contents :
    Netflix The Innovative Business Model
    Increasing Competition
    Challenges Ahead

    Case Introduction >>

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