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NETFLIX Free Resources
* By having a central wa...
* By having a central warehouse and office Netflix reduced real estate costs associated with running hundred of stores, including high costs associated with utilities and labor.
* Netflix could outsource much of the DVD warehousing and shipping logistics, building carefully the infrastructure as the market grew with brand awareness.
* Selection of videos is limited to "stock on hand" or currency of titles. Browsing through a store is easy for retail, but people's tastes in entertainment are varied, and not easily categorized for personal selection or inventory of obscure films.
* The centralized location reduced the inventory, increased earnings per DVD and also provided a large selection of obscure works.
Netflix Marketing Strategies:
* Marketing was key in the early adoption and success of Netflix. By getting the word out through major portals, Yahoo, MSN, and AOL, and through its relationship with BestBuy, consumers were deluged with information about the Netflix service.
* Free trials addressed the skeptics of a radically new service, and resulted in high conversion rates to continuing customers. The recurring transaction model helped consumers adopt the discipline of selecting films each week but without pressure.
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