The first problem Netflix has is that The DVD by mail services are rapidly declining.
Why?
Sales have declined because new technology and competitors are making the services obsolete
Why?
The first problem Netflix has is with its DVD mail service section.
Sales are continually dropping because of a variety of new technologies such as on demand movies from cable and satellite companies, New release and exclusive movies from competitors like Apple and Amazon, as well as competitors like Redbox offering superior distribution methods in the form of the Redbox Kiosks.
1. 2. Cost of content
Why?
their dependency on striking deals with content owners. They need to do so in order to constantly upgrade their streaming catalogue. In order to stay competitive
Why?
Low customer loyalty
Why?
Many competitors offering similar products.
Why?
Low barriers of entry
Problem/Decision Statement The heart of Netflix’s challenge is simple in concept but difficult to execute in practice: How can Netflix remain innovative enough to compete in such a highly saturated market? A – Consider minimum 1 strategy alternative and outline this approach (be sure to use marketing theory to support your position) B - Implementation Issues – what do you believe the key implementation issue will be based on your recommended strategy ? (be sure to use marketing theory to support your position) C – Be sure to address the following: 1. What role will Redbox play in the development of Netflix’s strategic plans? How threatening is Redbox to Netflix’s future? 2. How will new competition from digital content providers force Netflix to alter its strategy? 3. What new opportunities do you see in the movie streaming business, or the entertainment industry as a whole? In ALL responses, please be sure to use marketing theory to support your position, not just opinion.