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Presented by Top Taco

Presented by Top Taco. Meet Our Team . Stephen Cox. Brian Holland. Nick Lange. Tyler Lincoln. Farrah Muller. Scott Oehlerking. Cait Rame. Netflix. T op rent-by-mail and video streaming company. 26 million subscribers for streaming. Seamless multi-platform streaming.

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Presented by Top Taco

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  1. Presented by Top Taco

  2. Meet Our Team Stephen Cox Brian Holland Nick Lange Tyler Lincoln Farrah Muller Scott Oehlerking CaitRame

  3. Netflix • Top rent-by-mail and video streaming company. • 26 million subscribers for streaming. • Seamless multi-platform streaming. • Competitve Advantage • Original programming. • You watched ahead!

  4. NetflixSituational Analysis Strengths: Weaknesses: Long acquisition time for new releases. Longer time for new releases to be streamed online. Expensive innovation. Price sensitive customers. Decline in DVD rentals. Constant search for new partnerships and licensing. The Qwikster Debacle. • Largest consumer identifiable subscription service for TV and movies. • High market shares. • Strategic partnerships. • Massive customer base. • Sophisticated distribution channels. • Multi-platform streaming. • Successful creation of original programs.

  5. NetflixSituational Analysis Opportunities: Threats: High competitive rivalry in online streaming. DVD market loss to discount department stores. Increase in threat of new entrants as technology advances. Competitor’s technological innovations. Corporate espionage. Unforeseen legal liabilities. • High demand for multi-platform streaming. • Creation/revival of programming. • New generations of gaming platforms. • Increase in new TV shows and movies. • Increasing Hispanic segment. • Expanding internet access in other countries.

  6. NetflixAssumptions and Missing Information • Netflix feature will test limits of Facebook sharing. • "Netflix introduced a new feature that will test the limits of what personal information people share on Facebook. The feature will let Netflix members show others what they've watched on the subscription video service.” • Abandoning Microsoft Silverlight a smart move for Netflix, but likely to take years. • Netflix shares surge above $200 on strong subscriber growth. • “Netflix Inc. shares surged above $200 for the first time since September 2011, after the company's first-quarter results provided further evidence that it can add subscribers and report a profit, while paying for and creating content.”

  7. NetflixAssumptions and Missing Information • Market Surge for Netflix following original content-centric earnings. • "In a concurrent letter to shareholders, CEO Reed Hastings and CFO David Wells said the company will be rolling out a new family plan. The plan will allow customers to pay $11.99 per month to stream separate videos on four different devices simultaneously, opening the possibility for a new revenue source without the burden of a much more significant, broad-based price hike.” • Viewers stream to Netflix. • “Netflix hopes such original content will lure in subscribers and further differentiate it from competitors, including Amazon Inc. and Hulu, as well as premium TV channels like HBO and Showtime.” • The more cable 'unboxes' itself, the better for Netflix.

  8. NetflixAssumptions and Missing Information • Netflix targets younger audience. • Netflix and Disney/ABC Television Group Enter into Multi-Year Licensing Pact. • Netflix and Hasbro Ink Expanded Multi-Year Kids Programming Deal. • "Mako Mermaids," Sequal to Global Smash Hit Series "H20"- Just Add Water" Coming Exclusively to Netflix in July.

  9. NetflixIssues • Constant technological advances. • Predicting consumer reaction. • Staying competitive with streaming companies. • Redbox

  10. NetflixDevelopment of Alternatives Problem: Technological advances Alternative: • Up to date multi-platform streaming • Phase out DVDs Problem: Predicting consumer reactions Alternative: • Promotions and discounts • Surveys

  11. NetflixDevelopment of Alternatives Problem: Staying Competitive Alternative: • All in one monthly subscription • Offer new releases faster than competitors (Amazon, Itunes, Hulu, Google etc.) Problem: Redbox Alternative: • Netflix Kiosks • Netflix kiosk app

  12. NetflixEvaluation of Alternatives • Alternative for technological advances • Netflix streaming on devices its competitors cannot maintains its competitive advantage as far as streaming is concerned. • Alternative for predicting consumer reactions • Predicting customer reactions is going to be an ongoing issue, and we intend on tackling it head on with incentivized surveys for subscribers.

  13. NetflixEvaluation of Alternatives • Alternative for staying competitive • Offering the overall premium subscription for one price and all uses certainly keeps Netflix on top of the media streaming market, even more so if they were to shorten wait times on movies/programs. • Alternative for Redbox • Netflix kiosks with subscription usage not only puts Netflix even with its competitor, but improves its strategy by making them cost free.

  14. NetflixEvaluation of Alternatives Without an official mission statement, these alternatives still do hold true for Reed Hastings(CEO) vision for the future of the company. Having a majority share in the industry and continually seeking to improve aligns with “becoming the best global entertainment distribution service”. With the alternative of shortening wait times for programs and movies it is improving its goal of “licensing entertainment content around the world”. Making Netflix a premium service along with the (alternative kiosk scenario) continuing growth of not only digital but physical service, exemplifies Hastings promise to “give our customers stellar service, our suppliers a valuable partner, our investors the prospect of sustainable growth”.

  15. NetflixImplementation What to Implement: • Netflix should begin creating their own kiosks to compete directly with Redbox. • They can begin with areas not currently covered by Redbox and expand from there. Marketing Actions: • Advertisements on their site to inform current customers that they will now have the option of renting from a kiosk. • Mail out a “Netflix Card” to current customers. • TV/Web ads targeting non-customers and positioning themselves as a 1-stop solution.

  16. NetflixImplementation Time Frame for Completion: • Start advertising before rolling out the kiosks. • Implement the process of placing the kiosks in tiers. • 1000 kiosks per month to start. • After confirming that this course will work, increase to 2000 kiosks per month. • Once successfully established, increase to 3000 per month to put pressure on Redbox

  17. NetflixEvaluation and Control After 1 month: • We expect a 2% increase in market share in physical rentals. After 3-6 months: • We expect a 10-12% increase. • At this point, we will evaluate our kiosk/sales ratio. After 1 year: • We expect to have increased from 30% market share to 45%, gaining control from Redbox. • At this time, we will again evaluate our kiosk/sales ratio and determine if this alternative will continue to be profitable. • Determine appropriate quantity of kiosks to continue generating above average returns.

  18. Netflix Questions? Thank you for your time!

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