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Netflix Case Study

1) Netflix's value chain involves users creating accounts to access its library of movies, TV shows, and DVDs for a monthly subscription fee. 2) Both horizontal conflicts with similar streaming services and vertical conflicts with companies like smartphone makers can impact Netflix by increasing competition. 3) Netflix adds value for customers through its distribution functions like partnerships that allow streaming through devices like Xbox and PlayStation.

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abdul rehman
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206 views3 pages

Netflix Case Study

1) Netflix's value chain involves users creating accounts to access its library of movies, TV shows, and DVDs for a monthly subscription fee. 2) Both horizontal conflicts with similar streaming services and vertical conflicts with companies like smartphone makers can impact Netflix by increasing competition. 3) Netflix adds value for customers through its distribution functions like partnerships that allow streaming through devices like Xbox and PlayStation.

Uploaded by

abdul rehman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Case study

Topic: Netflix: Disintermediator or disintermediated

Question and answer


Question no 1: As completely as possible, sketch the value chain for Netflix
from the production of content to viewer.

Answer: Well the company Netflix is the brand trending organization. In which
the users create account to login and become a member of Netflix. Because Netflix
is a famous median to watch shows, movies, DVD but it has paid policy such as
monthly, weekly or yearly. It depends how many customers use and buy channels
and watch something. The viewers of Netflix they can enhance the views and
optimize the connections that makes the picture quality best for the view.

Question no 2: How do horizontal and vertical conflict impact Netflix?

Answer: In marketing horizontal conflict is the one that occurs between two
enterprises that might together, either directly or indirectly so impact on netlix is
that they are working with experts that currently are trending in market like they
are working with Xbox and playstation in order to establish home theater option so
they allow their member or user to access Netflix library and use it

In marketing vertical conflict is that occur between organization that work together
to provide the same product to the consumer like Netflix are working with
smartphone producers like Apple, google, android and windows too so this can get
phone users to experiment the Netflix app in order to increase more viewers

Question no 3: How does Netflix add value for customers through

Distribution functions?

Answer: Netflix has another competitor to watch out for movie gallery principal
activity is to provide retail home video in rural and secondary markets. They offer
a wide selection of movies and video games for sale and rents. The gallery of
movies has been developed a disciplined business strategies and that centers on
driving revenue growth and maximizing level productivity and it minimizes the
operating costs.

Question no 4: What threats does Netflix face in the future?

Answer: Netflix expects its DvD by mail business to peak in 2013 and at that point
it believes that its watch instantly streaming service will drive the growth. That’s
the gist of slideshow posted on the company’s jobs site that details the plans to
transform itself into leading streaming subscription service for Tv shows and
movies all in one.

Question no 5: Will Netflix be successful in the long term? Why or why not?

Answer: Netflix new deal with Warner bros in which it agreed to 28 day “DVD
window” for new releases, in exchange for greater access to WB’s films for its
watch instantly streaming features and reduced pricing on its own so it’s clear that
Netflix will be successful in the long term because many people have this system
which is to watch movies at home. As long as they want to watch movies at home,
this system will still work. And also it’s still increasing in the analysis.

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