Case Two: The Netflix Rollercoaster

Explain Netflix’s marketing strategy. Can it sustain its competitive advantage? Why or why not?

Nerflix’s market strategy was to make movie rentals and streaming easier for their customers all by the use of technology and the internet.  They began by using the mail services for their customers to rent movies at a reasonable price and got their next movie delivered as soon as the last one came back with no late fees. This already gained lots of new customer to Netflix but soon changed when Netflix realized their competitors where coming out with new abilities, like Redbox coming out with a kiosk, and were beginning to become popular. To increase there sails and profits they had to come up with a way for people to get their movies. In this next step they had bumps in the road with trying to separate mailing and streaming as two very different ideas, but when this idea crashed they came up with the ability to do both while only going through and by Netflix. This could also be known as Diversification in Netflix’s growth strategy. As of today, Netflix can sustain it’s completive advantage because it already has the advantage of letting it’s customers watch moves from any device with the access of some type of internet. It’s already ahead of the time of Redbox and Amazon prime combined. 

How has their strategic change and rapid reversal affected their customers?  Do you believe this situation is short-term public relations nightmare or a long-term reversal of fortune?

This affected their subscribers because those who wanted to buy mail services where now affected by a 60% increase in what they use to buy. Automatically because of this Netflix lost 1 million subscribers. As their subscribers where already being affected with this, Netflix decided to split the streaming and mailing services having those who wanted both services have to completely re register. They then saw how this also backlashed and how it wasn’t an effective strategy and went back to being one service under Netflix. I believe this is a short term public nightmare because this disaster was a lesson for those in the Netflix industry. Seeing how many subscribers they lost so quickly along with the negative press, should have them thinking to never do so many steps again with out the idea of what will be best for their subscribers who are already enjoying their services along with new subscribers as well. 

Perform a SWOT analysis for Netflix. What are its biggest threats and which opportunities should it pursue? You may attach an attachment if necessary.

S- Already with being so up to date with their service of online movies and shows, they are allowing their subscribers to watch anything from their own devices where ever they go. Mailing services are just a bonus for those who like to have the actual DVD in hand. Cheaper than cable services 

W- Paying the price to be a subscriber, although it is cheaper than cable services, some live on a tight budget. Those who have slow internet, constant buffering. 

O- Allows customers to watch a movie or a show were ever they go. The price is cheaper than cable companies. Ability to unsubscribe at any time. Allows for people stay in side and not have to pay to go out to the movies.

T- Redbox, and there cheap movie rentals for a day. Amazon Prime and It’s expanding company. 

What is the best way for Netflix to grow its business? Justify your answer.

The best way for Netflix to expand their company is to post more ad’s in other apps of social media such as Spotify, facebook, twitter, and more. They should also do a swot as an industry to understand where they are using subscribers and gaining them. Even giving their subscribers the ability to watch movies offline so the internet isn’t always needed. As they have been doing but need to keep doing is, keep up to date with the most popular trends in movies and shows and get rid of the ones they are not as popular possibly bring some back. Constant update and replaced of the trends helps keep their subscribers coming back because people are always looking for new things to watch. With it’s growing business and their ability for a family to watch a movie without having to pay to go out to a movie theater, makes it easier for those with e busy schedule to sit and down and relax by themselves or with a family.