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Netflix’s original business model Assignment PDF

   

Added on  2020-12-30

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CRITICAL ANALYSIS
Netflix’s original business model Assignment PDF_1
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................31. Netflix’s original business model was an example of a Blue Ocean Strategy or described interms of one of the generic strategies..........................................................................................32. Netflix has competitive or sustainable competitive advantage...............................................5CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
Netflix’s original business model Assignment PDF_2
INTRODUCTIONBlue ocean strategies involve risk, opportunity which simultaneously pursuedifferentiation and low cost It is a set of models and fixed techniques for regulating andexecuting blue ocean move. Tools include value innovation, strategy canvas, buyer utility map,three tiers of non-customers (Kim and Mauborgne, 2014). It is distinct from generic strategies.Porter's generic strategies are basically combined to achieve performance in industries like focus,cost leadership and differentiation. Thus, this report describes whether Netflix has anysustainable competitive advantage by investing larger portion of its budget into real films andmoving towards other studios or it is a good example of Blue Ocean Strategy.MAIN BODY1. Netflix’s original business model was an example of a Blue Ocean Strategy or described interms of one of the generic strategies Netflix was introduced in 1997 and is running provider of contents which enables usersto watch small films, motion pictures, t v shows and also provides wide variety of Internetassociated gadgets. It also provides their customers with pay per movie service where they haveto pay money for films rented. Then it moved to fees on monthly basis. After 2003, Netflixbecame successful and started streaming various videos on net. It rents movies to its customersand became the world premiere movie streaming website that earned $3.6-billion-dollar revenue.Porter's Generic Strategies could be described in a way company achieve competitive advantagein chosen market scope (Alam and Islam, 2017). There are four elements specified known aslower cost, differentiated or focus. Differentiation shows value cost trade-off in a providedmarket structure. On the contrary Blue ocean strategy breaks it open up new market space.Netflix pursues both low cost and differentiation. Netflix used Blue Ocean Strategy componentsdescribed below:SIX PATH FRAMEWORK Blue Ocean Strategy LogicStrategic groupConcert organizers, book publishers, virtual reality developersIndustryMusic, educational videos, live concert streamingBuyer GroupPeople who do not have Internet access, Seniors and childrenFunctionProducing entertainment through virtual reality
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