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NET FLIX Free Resources
Strategy Depl...
Strategy Deployed
The initial strategy of Netflix was to take the convenience of renting movies to the next level using the Internet as a selection tool, and adding convenience to delivery and return. Netflix addressed multiple "pain points" common in the physical space, including lack of inventory, pressure of time in both selection and logistics, and having to return films to avoid late fees. Additionally, Netflix offered a much richer selection experience, using Internet technologies to add reviews, personalization, and "consensus" selection; where the pressure to pick the right film is removed. In strategy deployed Netflix first addressed consumer needs by identifying where the current system was and where it was lacking.
Problem issues vs. Netflix solutions:
* Late fees: A lawsuit has been filed against Blockbuster for the amount they charge in late fees. These late fees often exceed the cost of purchasing the movie. Obviously customers were displeased with their monopolistic strategy and were willing to shift to an entirely new experience of video rental.
* Due dates: Rushing to drop movies off just in time to avoid late fees was an all too common experience with physical presence rentals. Often consumers would return movies they haven't yet had the chance to watch just to avoid being late. Eliminating due dates would be a unique feature of the Netflix strategy.
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