Netflix's Competitive Advantage and Technological Innovations

Netflix

Table of Contents
Q1. Discussing Netflix competitive advantage and how gained success over Blockbuster........1
Q2. Describing some technological innovations by Netflix to gain competitive advantage.......1
Q3. Role of disruptive innovation and technology by Netflix.....................................................3
REFERENCES................................................................................................................................5

Q1. Discussing Netflix competitive advantage and how gained success over Blockbuster
Netflix is one of the renowned online companies which is able to accomplish its desired
goals in the best manner possible. The value proposition of company is providing wide range of
online media services of highest quality in order to effectively engage customers. The value
proposition was “delivering entertainment”, thereby Netflix recognised that it needs to change its
skill set to cope with market shifts in a better manner. The bandwidths were expanded and as
global networks grew, Netflix was able to accomplish desired goals in an effective manner
(Keiningham et.al. 2019). It resulted in generation of many streaming purchase items’ content
providers for the firm, which lead to higher returns.
When company transformed its strategy from delivering physical media entertainment
(through DVD’s, tapes) to online content through internet streaming in 2011, better avenues
were accomplished. It can be traced out that Netflix has grown into highest subscribers in the
2018 reaching to 130 million which shows that customers are pretty much liking the band of
media and entertainment services. Due to higher customer base, the company’s revenue has
blown up by 57%.
International growth has reached to 70% and contribution origin has climbed to 15%
from being negative in 2017. This means that Netflix is able to grow faster than its rival
Blockbuster which does not rely on online streaming services. The company is engaged in
providing old and traditional services which has gone in vain (Teixeira & Piechota, 2019). This
shows that organisations lack behind Netflix having lower customer margin. It reflects the
leading position of Netflix in the media industry and the firm is entertaining its subscribers all
around the globe with its powerful content.
Q2. Technological innovations by Netflix to gain competitive advantage
Netflix is able to accomplish desired goals by engaging customers and gain competitive
advantage through technological innovation which are as follows-
1. Netflix, the Subscriber Model-
1