Case study- Netflix 2012 Essay Example | Topics and Well Written Essays - 1000 words

Case study- Netflix 2012 - Essay ExampleSubstitute products have a very strong cast over the organization because firms in other industries ar producing substitutes to what Netflix is offering. These products are also comparatively priced to attract to a greater extent customers.Bargaining power of suppliers is strong because there are very few content and studio providers uncommitted in the industry. Furthermore, the suppliers are significantly differentiated and the overall procedure of contracts is long-term and expensive.It is now easier for few firms to infix in to the market primarily because demand is constantly increasing and there are very impression barriers for entrance, for instance, unrestricted regulatory policies, less capital requirements, low degrees of customer loyalty and brand preferences etc. (Peteraf). ground on the above analysis it can be summarized that movie rental industry is significantly benignant to make huge gain. This is firstly because customer s are increasing rapidly and the new technological developments are further them towards live streaming and DVDs. Although this is highly competitive market but if the organization applies right strategies then profits can be increased.The overall concept of movie rentals has drastically changed with the development of internet technology. Previously we use to get our movies from physical stores but today millions of people subscribe to websites such as Netflix in frame to rent DVDs and watch movies. Netflix has also given significant customer facilities. In the near future customers are expected to switch completely to live streaming and online video libraries while paying a exquisite amount as rent.The long term growth rate of Movie Rental Industry In the last two decades customers using online movie rental services have significantly increased which has truly influenced the long term growth rate of the entire industry. It is evident that young people specifically from 14-34 l ong time of age are now