Introduction
Netflix, founded in 1997, is the dominant hand overr of DVD by get away and internet digital streaming. Its headquarters is located in Los Gatos, calcium and is operating in the USA, Canada and Latin America (Netflix press release-October 20, 2010).Wilmot reed instrument Hastings, founder and CEO of the company is now a dialog box member of Microsoft, Facebook, and numerous none for profit organizations.
By July 2011 Netflix inform over 25 million subscribers and a net income of 68 million dollars, an increase of 55% compared to the previous year fit in to the companys quarterly report and is able to provide approach path to major broadcast networks Netflix subscribers now have access to a wide range of programming from all tetrad major U.S. broadcast networks and from nearly every major rail line channel, as well as thousands of films, including those in their first subscription window, from Paramount, MGM, Disney, Lionsgate and a host of mini-major and independent studios. (Netflix quarterly report-July 5 2011).
What are Netflixs sources of competitive advantage?
In short, Innovation, strategically aligned wasting disease of technology and customer satisfaction. Dot com startup boosted companys growth.
Hasting realized that by introducing DVD by mail he could cut numerous costs related to real assert of store, workers, the energy to power the facility, etc. In addition to that, online business could confront obstacles associated with the number of customers that were able to reach a localization principle store or DVD shop. The other constrain just about physical store is the capacity of the shelves.
Advertising increases brand sense but it is only through customer satisfaction that a brand is made. Netflix seems to have a good understanding of this proposition as it used the IT technology to boost its customer satisfaction; the firm repeatedly ranks on the top of the satisfaction surveys, Gallagher (2011, Ch04).
intelligent use of IT technology has enhanced the business...If you want to get a full essay, order it on our website: Orderessay
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