Online Rentl Industry Coursework Example | Topics and Well Written Essays - 7000 words

Online Rentl Industry - Coursework Example The Netflix business mdel is n rgnized rent f DVD dvertised thrugh Internet nd delivered thrugh the pstl mil. Te key drivers re the number f custmers, custmer qulity, prduct csts nd fulfilment csts. Despite such gret ccmplishments f Netflix Cmpny, it permnently meets huge cmpetitin n the mrket f nline rent DVD. With such lrge cmpetitin hlding the resurces t munt strng, enduring ttcks ginst Netflix, lng with the ever-chnging mvie nd entertinment industry, Hstings, funder nd CE f nline rentl pineer Netflix, is fced with the chllenge f hw t sustin Netflix's grwth nd determine the best wys t respnd t the cmpetitin. Current study ims t discuss the cmpetitin n the mrket f nline rentl industry. It prticulrly discusses the key chrcteristics f Netflix's cmpetitive psitin nd gives n evidence f hw the cmpny stnds the strng rivlry. In the first prt f the pper I will ssess the cmpetitin in DVD industry. Using Prter's Five Frces Mdel f Cmpetitin I will define the kinds f cmpetitive frces tht currently fce Netflix. In prticulr, I will prvide n nlysis f reltinships between Netflix, Blckbuster, Vide nd Wl-Mrt. The externl envirnment f n rgniztin cmprises f the mves nd the strtegies dpted by its cmpetitrs. It ls tkes int ccunt the chnges in the generl ecnmy nd ther sci-culturl fctrs. It is impertive fr the rgniztin t precisely study its externl envirnment nd strtegize ccrdingly t gin cmpetitive dvntge. T this effect, the rgniztin uses vrius nlyticl tls. Prter's Five Frces Mdel f Cmpetitin is ne such tl. This prt f the pper exmines this tl nd discusses sme strtegies t cunter the frces previling in the externl envirnment. fmus ecnmist Prter hs intrduced the mdel tht represents the cmprehensin f certin frces tht ltgether utline the min chllenges f cmpetitin. Drwing frm micrecnmic thery, Prter identified five frces (expnded t six by mny bservers) tht influence the bility f ll plyers within n industry t set prices nd s mke prfit. The pttern f frces bth shpe n industry nd cnstrin firms strtegic chices within the industry, but industry structure is subject t chnge s the wider envirnment, the frces themselves, nd the firms' strtegies chnge. Here's the picture: Belw is detiled discussin f ech frce in reference t Netflix cmpny. Bsiclly, the strnger frce, the mre it limits the industry firms' bility t set prices nd mke prfits. Strng frces re threts becuse they re likely t reduce prfits. Wek frces re pprtunities becuse they llw firms chnce t ern greter prfits. INTENSITY F RIVLRY MNG EXISTING CMPETITRS When speking but cmpetitive psitin f Netflix in DVD industry, it is needed t sy tht it remins few steps hed f its clsest cmpetitr. Hwever, tht des nt men tht