Netflix strives to supply customers with a wide selection of DVDs, at an affordable price, in a convenient manner. The online rental format not only allows the consumer to navigate an easy searchable database, but also provides insight on recommended titles for rental, to ensure a positive viewing experience.
[...] If the company continues to differentiate itself from other competitors, new businesses will not be a threat because of the current customer loyalty and the value that the Netflix brand has established thus far in the on-line video rental market. Implementation Issues Both of the alternatives contrived resolve the potential problem of the threat of competition emerging into the on-line rental market. To expand upon the video selection that Netflix offers, the company will just need to acquire new titles and advertise the newly available titles to the public. [...]
[...] Information systems such as Cinematch online interface allow online browsing and provide customized rental suggestions. Sophisticated software aides the materials management system with competencies in inventory organization. Weaknesses Narrow product offering. Customer waiting period for mail delivery of requested rentals. Opportunities 1 Movie download capability to reduce waiting period. Expand product offering to video games as well. Joint collaborations with other online rental companies Threats Change in consumer tastes- video-on-demand and piracy. New companies, (Vongo.com) offering downloading capabilities and instant product delivery. [...]
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