ASSESSING THE     STRATEGIESOF A DIGITAL RETAILER     Katie Jennings, Sonia Galvez, Jessica Dietrich,         Christina Wa...
NEED FOR RESEARCH        •   E-Commerce is new way of retailing        •   Shifting consumer preferences and consumption h...
OVERVIEW        •   Company Profile        •   Utilized Retailing Strategies and Marketing        •   Strengths, Weaknesse...
NETFLIX MISSION    STATEMENT        "To revolutionize the way people watch movies and become the worlds                 le...
NETFLIX COMPANY    PROFILE        •   Public corporation founded in 1997        •   E-Commerce company        •   Provides...
NETFLIX FINANCIALS          EBITDA   Netflix           2004    107.6           2005    108.0           2006    216.8      ...
MARKETING STRATEGIESSonia
MARKETING   PROMOTIONS    Traditional and Digital MediaSonia
Sonia
STRENGTHS & WEAKNESSES    Strengths:                              Weaknesses         Comprehensive Library              ...
COMPETITIVE ADVANTAGES    •     First-mover advantage in online rental    •     Patented method of online DVD selection   ...
DAILY & SHORT-TERM      OPERATIONS       Fast, next-day shipping    Provide shipping costs unattainable      by competit...
OPERATIONS CONT’D    Provide half-fulfillment center/half marketing     center    Virtual pooling    Inventory manageme...
Christina
CHANGING    ENVIRONMENT     Loss of contracts     Loss of customers and loyalty     Pricing strategy     Compromised c...
RESPONSE TO ENVIRONMENT     Eager to provide reliable service to consumers     Changed prices to appease frustrated cons...
PROPOSED ALTERNATIVES        Strengthen supplier        relationships and content        acquisition        Obtaining ma...
PROPOSED ALTERNATIVES        Expanding Internationally to         continue growth        Stay on the offensive while    ...
PROPOSED ALTERNATIVES        Continuous improvement         in functional level        Netflix entering           VOD ma...
RECOMMENDATIONS        Provide consumers with an al a carte plan        Rebuild relationship with major movie studiosFadi
THANK YOU!   Questions?
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Netflix: Assessing the Strategies of a Digital Retailer

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This PPT entails the retail strategies utilized by online retailer Netflix, as well as how retailers are adapting in an environment affected by ever-changing technology.

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  • “ All-You-Can-Watch” Netflix “ http://www.scribd.com/doc/19485919/Blockbuster
  • Netflix: Assessing the Strategies of a Digital Retailer

    1. 1. ASSESSING THE STRATEGIESOF A DIGITAL RETAILER Katie Jennings, Sonia Galvez, Jessica Dietrich, Christina Walthour, and Fadi Abubaker
    2. 2. NEED FOR RESEARCH • E-Commerce is new way of retailing • Shifting consumer preferences and consumption habits • Evolving business functions and practicesKatie
    3. 3. OVERVIEW • Company Profile • Utilized Retailing Strategies and Marketing • Strengths, Weaknesses, & Advantages • Operations & Environment • Proposed Alternatives • RecommendationsKatie
    4. 4. NETFLIX MISSION STATEMENT "To revolutionize the way people watch movies and become the worlds leading internet subscription service for DVD rentals"Katie
    5. 5. NETFLIX COMPANY PROFILE • Public corporation founded in 1997 • E-Commerce company • Provides on-demand internet streaming media and DVDs by direct mail • Nearly 24 million subscribers to goods and services o DVD rental o Instant Streaming Services  Over 700 capable devices • Recent contract expirations and unfavorable strategiesKatie
    6. 6. NETFLIX FINANCIALS EBITDA Netflix 2004 107.6 2005 108.0 2006 216.8 2007 302.0 2008 358.0 2009 446.6 2010 617.6Katie
    7. 7. MARKETING STRATEGIESSonia
    8. 8. MARKETING PROMOTIONS Traditional and Digital MediaSonia
    9. 9. Sonia
    10. 10. STRENGTHS & WEAKNESSES Strengths: Weaknesses  Comprehensive Library  Lack of Geographic  50,000+ Titles Diversification  Increase Revenue and Market  Heavily relies on one segment Size of the market  Strong Market Position  Not largely global  Personalized Merchandising  Lower Profitability  Strong Financial Positioning  Operating margin :  Company stands = 8.0  Sectors average =9.75  Industrys average =15.09Jessica
    11. 11. COMPETITIVE ADVANTAGES • First-mover advantage in online rental • Patented method of online DVD selection o Personalization and recommendations • Aligns with consumers need and preferences o Variety o Convenience • Digital option in a digital world • Innovative and efficient operations tacticsJessica
    12. 12. DAILY & SHORT-TERM OPERATIONS  Fast, next-day shipping Provide shipping costs unattainable by competitors Provide DVD rental service and online streaming options  Maintain customer relationshipsChristina
    13. 13. OPERATIONS CONT’D  Provide half-fulfillment center/half marketing center  Virtual pooling  Inventory management system  Maintaining partnership w/ Amazon web service  Cloud-based infrastructure  Product quality check systemChristina
    14. 14. Christina
    15. 15. CHANGING ENVIRONMENT  Loss of contracts  Loss of customers and loyalty  Pricing strategy  Compromised competitive advantages What was their response to the changing environment?Christina
    16. 16. RESPONSE TO ENVIRONMENT  Eager to provide reliable service to consumers  Changed prices to appease frustrated consumers  Separated DVD operations and on-line streaming services  Eager to rebuild damaged customer loyalty  Trying to re-establish competitive advantage over Amazon, Wal-Mart, & RedBoxChristina
    17. 17. PROPOSED ALTERNATIVES  Strengthen supplier relationships and content acquisition  Obtaining market share by penetrating minority marketsFadi
    18. 18. PROPOSED ALTERNATIVES  Expanding Internationally to continue growth  Stay on the offensive while defending market positionFadi
    19. 19. PROPOSED ALTERNATIVES  Continuous improvement in functional level  Netflix entering VOD marketFadi
    20. 20. RECOMMENDATIONS  Provide consumers with an al a carte plan  Rebuild relationship with major movie studiosFadi
    21. 21. THANK YOU! Questions?

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