Executive Summary Internet is an easy approached which is reached and adapted by every person and the people are addicted to the services which are provided through internet. As in the competition of the blockbuster, Netflix brings the same concept as of streaming the videos on demand and also Movies and games across the world. As the founder of Netflix is Reed Hastings and Marc Randolph who bring this concept in 1997 with various new changes which distract the people through blockbuster by their video and rental DVD which they are providing at that time. The aim is to determine the success of Netflix in context to blockbuster videos. It is examined that by providing proper quality video with low pricing strategy attract the customers interests towards their services. In such cases Netflix are providing such quality services and also the usually upgraded there system which provides faster speed at the time of surfing.
Table of Contents INTRODUCTION...........................................................................................................................4 Why Netflix is important............................................................................................................4 How Netflix can beat Blockbuster..............................................................................................4 Aim of the report........................................................................................................................5 Objectives...................................................................................................................................5 Research Background..................................................................................................................5 Rational......................................................................................................................................5 STRATEGIC POSITIONS.............................................................................................................6 PESTLE Analysis.......................................................................................................................6 Porter's Analysis..........................................................................................................................7 STRATEGIC CHOICE....................................................................................................................7 Business strategy.........................................................................................................................7 Corporate strategy.......................................................................................................................8 International Strategy:.................................................................................................................8 Strategy Actions...............................................................................................................................8 Strategic Development...............................................................................................................8 Strategic leadership.....................................................................................................................8 Strategy in Practice....................................................................................................................8 Strategy Analysis.............................................................................................................................9 RESEARCH METHODOLOGY....................................................................................................9 DISCUSSIONS..............................................................................................................................11 CONCLUSION..............................................................................................................................17 Research Limitation......................................................................................................................18 REFERENCES..............................................................................................................................19 APPENDIX....................................................................................................................................21 Questionnaire............................................................................................................................21
INTRODUCTION Why Netflix is important In the competition of the blockbuster, Netflix brings the same concept as of streaming the videos on demand and also Movies and games across the world.The founder of Netflix is Reed Hastings and Marc Randolph who bring this concept in 1997 with various new changes which distract the people through blockbuster (Goff Inglis and Zolfaghari, 2017).The research is based on this topic regarding the Netflix beat blockbuster videos. Its importance is that it bring new changes in the digital system and also new web series are launched with good quality and reasonable subscription fees. How Netflix can beat Blockbuster Blockbuster and Netflix are considered to be one of the major changing app which attract the customers and fulfil the demand of the people in various ways. Their main object is to provide quality videos and games which attract the interest of the customers towards their services and also they can use it worldwide. The first concept to promote such services are provided by the blockbuster which on demand bring services such as video and games are also imposed through such demand, in the 2000s they lose their revenue which results in arising bankrupt to the company. They also have to close various store by fulfilling the demand of the people but they can't attract the interest of the people for longer run. Changes in demand and also the taste of customers changes not results in downfall of the least usage of app. As if the company can't bring new techniques to attract the interests of the customers for longer terms than it results in lacking in providing services. As the use of internet are not more in previous times and also mainly people are not known of such app. They didn't use any promotional techniques to attract the interest of the customers. Netflix nowadays uses variousinnovativetechniquetoattractthecustomersandthatthereasontheybeatthe blockbuster which results in arising bankruptcy to the company. The taste of customers are frequently changing and they always bring new products but still Netflix is surviving and using various strategies to adapt the interest and surfing of their sites. The brand name of blockbuster is strong and that also maintain various franchise agreement which enhances their business into different counties. At the time of having a huge success. They employed many people and also open mainly stores which is the major factors of
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their employment but due to changes in time they suffer loss and also competitors in the market which results in closing all the stores and many employees lost their jobs. Aim of the report To determine the success of Netflix in context to blockbuster videos and also present that how Netflix beat blockbuster market at large scale. They are now holding ten times the net worth of the blockbuster company. Objectives The objectives which represent the blockbuster and Netflix company are related to outline the review of both blockbusters and the Netflix and they also examine various exploring strategies adopted by Netflix to beat Blockbuster. It helps to identify the choice and actions adapted by Netflix to remain the dominant online streaming provider. Research Background Technology plays important role in attracting customer in different way. One of the major role is played by the Blockbuster and Netflix. Nowadays Internet is easily approached which is reached and adapted by every person and the people are addicted to the services which are provided through internet. Due to surfing they need the quality which the Internet is providing to watch the video, play games and also watch the complete Movies through this app.One of this is blockbuster which was founded by David Cook in America in the 1990 s with a new concept of delivering rental DVD or streaming on videos (Daidj and Egert, 2018).At that time this is the new app which is capture by every person and mostly person uses this app to stream the videos and games. With the success of the blockbuster, they employed 84,300 people around the world and opened 9,094 stores across the country. Rational Researcher is very fond of conducting survey in technology and that the only reason he selected this topic to identify various fact and figures regarding the people switching from one app to another. As the issue are also raised regarding adopting of new app which provides more quality video and fast surfing facilities and that's the reason researcher find it interesting to research on this topic. Researcher came across many videos and outline regarding the Netflix and their subscribes which are daily increasing and in that case researcher select this topic so that he can conduct a deep study and examine various information regarding the failure of blockbuster videos. As many authors and other researcher also conduct research on this relevant topic so lot
of data are already collected which helps them to conduct a valid research and also collects matters from the research which the researcher had already researched on that relevant topic. The researcher chooses this topic so that relevant information is collected which helps the companies to bring new changes in technologies and also develop new and fast growing services which attract the interests of the consumers at different level. STRATEGIC POSITIONS PESTLE Analysis It is mainly used by the companies to analyse their macro factors which affecting their marketing strategies and there products to enter into the new markets. FactorsAnalysis PoliticalMostly the results of blockbuster loss is related to lot of restriction by the government and they cannot use many services to bring their video in different countries. EconomicBlockbuster is affects by restriction in trade barriers which they cannot promote their products and video in international markets (Kumb, Kunz and Siegert, 2017). SocialChanges in internal and external environmental demand bring lot of changes which is to be also adapted as if they are stable they had to adapt more subscribers and viewers in case of blockbuster as well. As blockbuster is also enhancing the need of the customers and they provide more employment opportunities by opening stores in global market (Panniello, Gorgoglione and Tuzhilin, 2016). TechnologicalNetflix adapted their technique to bring new and innovative games and video which increase their interests of the customers and also they enhance their subscriber and viewers of that channel (Jugovac and Jannach, 2017). LegalNetflix enhance their network in wider ways that they develop their own web series which was launched in 2016 and also engages in films which
results in the there operation system operates in 190 countries around the world. EnvironmentalNetflix are offering more picturization and the quality which they are offering to their clients are more remarkable in comparison to any other sites. Porter's Analysis Through this analysis it helps the organisation to analyse their competitors in the market ans use various strategies to adapt the changes. FactorsAnalysis Bargaining power of suppliersThe resources which they are providing shall be different from that of others. The suppliers demand are changing due to changes in time. Threats of new entrantsWhenthereiscostdifferentiation,therearemore changes to enter new competitors in the market. In case of blockbuster same things happens which results in bankruptcy of that company. Industry RivalryIf the companies didn't bring innovation in market they cannot attract the customer towards their products. Threat of SubstitutesWhen the same products are available in the market, the customers had more demand to choose the right products (Hofmann and et.al., 2017). Bargaining power of BuyersThey mostly find the advantages in the products which results in low pricing with better quality.
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STRATEGIC CHOICE Business strategy Netflix is using the innovating strategy to attract the customer towards their web series. As customer always demand new things in web series and if they found the video which are presenting some unique concept and also the quality of the services are also very different as that from other. That's the only reason to adapt such sites (Raffaelli, Glynn and Tushman, 2017). Corporate strategy Netflix applies the organising strategies which helps in acting their plan for future growth. As they organise their various aspects regarding bringing any new web series, promoting their products and services and also evaluating the process in systematic manner (Classic strategic Failure: Blockbusters,2019). That's the reason that Netflix takeover Blockbuster and also provide more renowned services to their customer to enhance their subscriber interests towards their series of games or any videos. International Strategy: As Blockbuster didn't choose the way to adapt the interest of the customer. They choose the Netflix in respect that they beat the competitors easily and their quality and concepts are always new and they bring the best series which can't be beat by any other web series (Schultz, 2016). In such case they are usually attracted the customers and fulfil their needs and demand through their services. Strategy Actions Strategic Development Blockbuster used the DVD system to present the videos to their customers. But Netflix adopts various strategic development to adapt such changes they use online digital system to attract the customers and also provide high rated quality and speed to their customers which subscribes their online sites. Strategic leadership The vision and mission of the blockbuster is also very clear just they lack in expending their business as they didn't manage their operational activities and also their profits which results in lacking their identity and brand name in the market. Netflix uses this benefits and they grab the customer interests by providing the same services in better way.
Strategy in Practice Customer first choice to choose such web series is related to portfolio which they are presenting at the time of viewing such series and videos. Customer usually compare the services from other and then choose the best products so that they can satisfy with the products for longer terms. Strategy Analysis Advertising is the basic strategy which is adapted by the Netflix to bring their innovative concepts in the market. Through such promotion technique they can attract more customers as customers are addicted to social media marketings and they know about any concept through advertisement only. The pricing is also matter in adapting the various web series, customers always prefer the products with the best quality and low pricing. But the blockbuster in facts cannot strongly face the techniques which is used by the Netflix to attract the customers towards their sites. In 2012 they itself become the producers and director to produce the web series and named it as Netflix originals. RESEARCH METHODOLOGY Research philosophyItincludestheideas, thoughtsand expressionwhichis usedtocarrythe research activity. Ithastwotypes positivismand Interpretivism Researcherwilluse interpretivism philosophytocarry their research activity. Theyinterpretthe available data from the informationwhich theycollected(Shah and et.al., 2018). Research ApproachInthisapproachit includes various plans andprocedureto conduct the research. Ithastwotypes Inductiveand deductive Researcher will apply inductivetypeof research to carry their survey so that they can
gathermore information accurately. Research DesignItmeansthedesign which is used to carry theresearchactivity (Raffaelli,Glynnand Tushman, 2015). Ithastwotypes Quantitativeand Qualitative Researcher will apply quantitativetypeof researchdesignto carrytheiractivities for further use.There aremorechancesof gettingtheaccurate andmorereliable results. Data collectionOncetheresearch decision is completed the data are collected from various fields. As tocollectdata,they havetoconduct varioussurveyand also various liabilities are imposed on it. Itconsistsofboth primary and secondary Researcher will apply boththemethodto colletthedataand informationwhich makesthereresearch valid and successful. Data AnalysisOnce all the relevant informationare collects they are to be analysesandputin systematicmanner. Withthisanalysis,it reflectstheactual statusofthereport (Voigt,Buligaand Itcoversunder Thematic method Researcher will apply thematicmethodto analyse their research projects. The reason to choose this method is that they can inspect, verify and clear all the errors from such data.
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Michl, 2017). SamplingSamplemeansto collectallthe informationwhichis tocarriedfromthe largenumberof population. Itusesrandom sampling method Researcher will apply randomsampling method to carry their researchactivityso thattheycollector gatherasmuch informationfrom different view persons. Researcherusesthe views of 20 people to carrytheirresearch andknowtheir understandingin relation to Netflix and blockbuster. Ethical considerationEthics means such an activitywhichcovers under the government norms. Researcher will apply various ethics such as notdisclosingany informationofthe company without there person or not harming any person or causing any injury wt the time of conducting research (Tigges, van der Stelt and Volk, 2018). DISCUSSIONS Theme 1: How you came across through various Web series
TV Advertisement3 Campaigns1 Internet surfing14 Newspapers2 TV AdvertisementCampaignsInternet surfingNewspapers 0 2 4 6 8 10 12 14 16 3 1 14 2 Interpretation:As from the above graphs it is interpreted that out of 20 people 14 respondent agreed that people are addicted to the Internet and they usually surfing various activities which they came across through Netflix. As the customers are attracted towards the Netflix through Internet surfing and their web series. The games and the video which are represented in that sites are chosen by the customers. Nowadays people spend more of their time through searching new things which had there more interests it can be any series of games or any video which are exclusive and linked to the glamorous media. As it is also reviewed by the authors that this statement is justified that if any companies want to promote their business they use internet procedure to expand their activities. Mostly few respondents came to know about the Netflix through TV advertisement otherwise mainly subscribers are through internet surfing. Theme 2: Can Netflix beat blockbuster videos through changes in technologies Strongly agree2 Agreed12 Neutral3
Strongly disagree1 Disagree2 Strongly agree Agreed Neutral Strongly disagree Disagree 0 2 4 6 8 10 12 14 2 12 3 1 2 Column B Interpretation:From the above study, it can be interpreted that 12 out of 20 respondent agreed that Netflix can beat blockbuster videos by technology changes. Due to changes in time, technology are also upgraded and more fast speed are provided which is helpful at the time of searching. As blockbuster video can't approach to Maximum people and cannot maintain their long term relationship with the people. As they somehow fulfill the needs and demands of the customers but the taste of the people are changing due to changes in time and such results arise that they open many stores but cannot win the trust of the customers. But about 3 out of 20 respondent reacted in neutral way that it cannot beat the blockbuster as this concept runs from the ancient times and now Netflix take over blockbuster and had $28 billion dollar as their net worth which is said to be the ten times the net worth of the blockbuster till now. Theme 3: The strategic position which Netflix choose to attract the customers. Retail outlet2 Operating outlet14 Interpersonal Interaction with individual3 Cultural Differences1
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Retail outlet Operating outlet Interpersonal Interaction with individual Cultural Differences 0 2 4 6 8 10 12 14 16 2 14 3 1 Column B Interpretation:From the above graph it can be interpreted that 14 out of 20 respondent feels that the strategic position which the Netflix chooses to beat the blockbuster is related to operating outlet. Due to various resources are utilized and if the companies adapted such factors to maintain their stability through internal matter and their operating system which provide more fast and clear video to their subscribes it enhances their brand name so that they can emerge in the market and also attract the customers. As they restrict the various areas and also the app which is disclosed in the web series which avoids various virus to be enter into such sites. Only few agree that it results in mission and vision of the companies to attract the customers at what level and what technique they used to enhance the customer interest. Theme 4: Actions which Netflix determine to bring new web series in the market Evaluating process3 Organising the work12 Changes the process1 Practice to implement new techniques4
Evaluating process Changes the process 0 2 4 6 8 10 12 14 3 12 1 4 Column B Interpretation:From the above study it can be interpreted that 12 out of 20 respondents agree that actions which the Netflix choose to bring new web series in the market is organizing their work so that they are ready to face the challenge in the emerging market. As to bring any web series first the company had to work internally to bring or launch any products. They have to use various strategy to organise their work which includes managing the information, using various promotional activities to innovate their products and make their products attractive so that customers can easily adapt such services. The success results came only when the company is prepared internally and they manage their affairs so that can strongly face all other matters externally. As the internal mater reflect the external outcomes which is to be figure out within the stipulated time so that they can take strict actions towards the chosen field. Theme 5: If Netflix provide quality video with low pricing strategies Yes15 No2 May be3
YesNoMay be 0 2 4 6 8 10 12 14 1615 23 Column B Interpretation:From the above graph it is interpreted that 15 out of 20 respondent feels that Netflix provide the best quality with low pricing and that the reason that as per the survey they had 30,000 subscribes which are happy with the services which they are providing. As usually the other sites charges more on watching various games or video but Netflix charge the minimum prices which is easily affordable by anyone and it is restricted to certain age which they can't use that sites. As Netflix is famous for its brand name which they built in various countries and people use this web series just because of the best quality of video which they are providing. They also develop such series which are unique from the other games and they the pictures and the sound which they carry are unbeatable. Theme 6: Various choices which Netflix adapted in context of blockbuster is fails this concept . Innovation13 International marketings2 Strategic Alliances2 Competitors3
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Innovation International marketings Strategic Alliances Competitors 0 2 4 6 8 10 12 1413 22 3 Column B Interpretation:From the above data analysis, it can be interpreted that 13 out of 20 respondent feels that the choice to attract the customers which the Netflix adapted is that of bringing innovation in their products and services and also enhance their products which the best quality. As new changes are always attractive and if it is according to the demand of the customers that it not only bring new brand image but also bring more profits to the company. Innovations and creative are always helpful for the companies to grow and attract the customers. As many competitors also plan new strategy to attract the customers so they bring changes in the previous product and innovate some new concept and then enter into the market. Though such changes they bring more business intheir company. As very few agree that it can be results in competitors which motivate them to bring new changes in the business and the services which they are providing. CONCLUSION From the above report it can be concluded that Netflix is more powerful than blockbuster in all the possible ways. The major aspect is related to operational activity which the Netflix company carriers in sorted way that if any competitors arise they can beat easily through various strategies which they are implementing to attract the customers towards the web series. That's the reason that Netflix company generated as much revenue which is ten times more than the blockbuster net worth. As both the companies powerfully enter into the market with different
strategies but due to changes in time only Netflix can maintain a close relationship with the customers and attract the customers through their services and quality of product which they are offering to public at large scale. Research Limitation Researcher finds various limitation at the time of conducting the research process. The major limitation is relating to time management. As the research is conducted in such are which requires more time and also the access to research is not given in some places. It results in causing various delay in getting the appropriate research. In few cases the resources are not sufficient to conduct a valid research and also if resources are available it results in wastage as at that time there is no such use of it. Research is also affected when the mood fluctuation happens with the people which didn't get the appropriate results.
REFERENCES Books and journals Daidj, N. and Egert, C., 2018. Towards new coopetition-based business models? The case of NetflixontheFrenchmarket.JournalofResearchinMarketingand Entrepreneurship.20(1). pp.99-120. Goff Inglis, K. and Zolfaghari, S., 2017. A Review of Scheduling Problems and Research Opportunities in Motion Picture Exhibition.Interfaces.47(2). pp.175-187. Heidorn, P. B., Stahlman, G. R. and Steffen, J., 2018. Astrolabe: Curating, Linking, and Computing Astronomy’s Dark Data.The Astrophysical Journal Supplement Series.236(1). p.3. Hennig-Thurau, T. and Houston, M. B., 2019. Integrated Entertainment Marketing: Creating Blockbusters and Niche Products by Combining Product, Communication, Distribution, and Pricing Decisions. InEntertainment Science.(pp. 785-820). Springer, Cham. Hofmann, J. and et.al., 2017. Empirical generalizations on the impact of stars on the economic success of movies.International Journal of Research in Marketing.34(2). pp.442-461. Jugovac, M. and Jannach, D., 2017. Interacting with recommenders—overview and research directions.ACM Transactions on Interactive Intelligent Systems (TiiS).7(3). p.10. Kumb, F., Kunz, R. and Siegert, G., 2017. Research on the motion picture industry: State of the art and new directions off the beaten track away from theatrical release.Journal of Economic Surveys.31(2). pp.577-601. Panniello, U., Gorgoglione, M. and Tuzhilin, A., 2016. Research note—In CARSs we trust: how context-aware recommendations affect customers’ trust and other business performance measures of recommender systems.Information Systems Research.27(1). pp.182-196. Raffaelli, R. L., Glynn, M. A. and Tushman, M. L., 2017. Flexing the Frame: TMT Framing and the Adoption of Non-Incremental Innovations in Incumbent Firms. Raffaelli, R., Glynn, M. A. and Tushman, M., 2015. Frame flexibility: the role of cognitive and emotional framing in innovation adoption by incumbent firms.Strategic Management Journal. Schultz, A. M., 2016. Protecting consumer viewing habits: Reflections on the video privacy protection act. Shah, S. and et.al., 2018, June. Innovation and I4. 0 management in connected and autonomous automotivemanufacturing.In2018IEEEInternationalConferenceonEngineering, Technology and Innovation (ICE/ITMC).(pp. 1-8). IEEE. Tigges, J., van der Stelt, B. and Volk, J., 2018. The New Kids on the Block-Exploring the brand identity of disruptive innovators.LBMG Strategic Brand Management-Masters Paper Series. Voigt, K. I., Buliga, O. and Michl, K., 2017. Entertainment on Demand: The Case of Netflix. InBusiness Model Pioneers.(pp. 127-141). Springer, Cham. Online
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APPENDIX Questionnaire 1) How you came across through various Web series TV Advertisement Campaigns Internet surfing Newspapers 2)Do you agree that Netflix can beat blockbuster videos throughchanges in technologies Strongly agree Agreed Neutral Strongly disagree Disagree 3) From the following, what are the strategic position Netflix choose to attract the customers. Retail outlet Operating outlet Interpersonal Interaction with individual cultural differences 4) From the above options, what are the actions which Netflix determine to bring new web series in the market Evaluating process Organising the work Changes the process Practice to implement new techniques 5) Do you agree that Netflix provide quality video with low pricing strategies. Yes No May be 6) From the following, what are the choices Netflix adapted in context of blockbuster is fails in this concept