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Showing posts from May, 2019

Improvement Project of Science Construction CS

Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...

What is the value proposition of Netflix?

According to Pogue (2014), “Netflix, Inc. is an American media-services provider headquartered in Los Gatos, California, founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is its subscription-based streaming OTT service which offers online streaming of a library of films and television programs, including those produced in-house.” It is obvious to recognize how Netflix has and is still influencing the market of online movie streaming, as state Pogue (2014), “ As of April 2019, Netflix had over 148 million paid subscriptions worldwide, including 60 million in the United States, and over 154 million subscriptions total including free trials.” We can state that their value proposition has been very effective and its very simple ‘See what’s next. Watch Anywhere. Cancel Anytime’ As we can see, Netflix made a simple and a great strategy with this value proposition, because it gives all the customers the freedom that any consume...

Why Netflix is a disruptive Innovation?

Founded in August 1997 in Scotts Valley, California, Netflix is ​​a US entertainment company created by Reed Hastings and Marc Randolph, whose mission is to stream media, video-on-demand and DVD-on-demand online . It was during the year 2013 that has made an extension of its portfolio of projects, including the film and television production, as well as the online distribution, so in 2017 it could have its headquarters in Los Gatos, in California. Regarded as one of Netflix's leading competitors and internationally known in the 1990s, David Cook's blockbuster is a company whose main business is the provision of home film and video game rental services through retail stores. rental of videos, DVDs by mail, streaming, video on demand and cinema-theater. According to Akshay et al. (2017), Blockbuster employed 84,300 people worldwide, including approximately 58,500 in the United States and approximately 25,800 in other countries, and had 9,094 stores at its peak in 2004(Akshay et a...

How Netflix drove Blockbuster out of business?

Netflix had started the business by the end of the 90s. At the beginning, Netflix had two huge competitors: Wal-Mart and Blockbuster in the DVD rentals, however by 2004 Wal-Mart decided to leave this business since it was not one of its core businesses. Netflix, then, had to deal with the US largest video-rental chain, Blockbuster, for which video rentals was its sole business (Newman, 2010). In the following, a discussion will be carried out in order to emphasize how Netflix succeeded in gaining a sustainable competitive advantage, getting Blockbuster out of the market, and utilizing advanced technology to fortify its market position. Netflix was able to gain a competitive advantage over its chief rival Blockbuster.  Discuss the Netflix value proposition and how it successfully gained and advantage over Blockbuster. Netflix’s success was mainly about identifying the weaknesses exist in Blockbuster’s business model. Identifying these weaknesses, along with the futuristic insight to...

Netflix and Disruptive Innovation

Introduction The name Netflix didn’t come out of wishful thinking, it came from an uncomfortable and unsatisfied customer. The CEO of Netflix, Reed Hastings was charged $40 for returning the movie Appolo13 six weeks late (Zarafshar, 2013). This motivated him to start Netflix – a DVD rental-by-mail business with no subscriptions in 2007 with a partner Randolph. In 2009, the company launched the subscription-based DVDs rental by mail with multiple plans depending on the number of titles at a time. Subscribers were provided with extensive DVD library with over 120,000 titles for unlimited monthly DVD rental with free shipping as well as zero late and per title rental fees to choose from (Netflix Case Study, 2016). Customers were allowed to make subscriptions on the spot and subscribers of other competition found Netflix’s offers more appealing and it was easy for them to make the switch (Netflix Case Study, 2016). Netflix also enabled its subscribers to watch movies, TV-episodes, document...

How innovation gave Netflix a competitive edge?

            Netflix’s strategy is growth, accepting newcomers as quickly as possible. Netflix aims to spend money which it does not have and grow its business. So far, it has worked for Netflix, attracting thousands of new customers, rivaling other streaming businesses (Ovide, 2019). Netflix made good use of technology and information systems to grow its business faster than its competitors. In this write-up, I will discuss how Netflix kept itself relevant and became a success story. Part 1 Netflix was able to gain a competitive advantage over its chief rival Blockbuster.  Discuss the Netflix value proposition and how it successfully gained and advantage over Blockbuster.             The founders of Netflix were able to look at their business as outsiders and determine what the customers want and prefer. That is what made Netflix unique. The subscription model was a busines...

Netflix used Disruptive innovation

1- Netflix was able to gain a competitive advantage over its chief rival Blockbuster.  Discuss the Netflix value proposition and how it successfully gained and advantage over Blockbuster . Competitive advantage is related to service or good which can be offered with lower price or special features   ( Investopedia, 2018). Usually the competitive advantage link to distinct innovations. Regarding these details   which include success components, we have here practical case study about Netflix. Blockbuster was established successfully in the rental movies and video game business, but it didn’t move forward or changed itself where the technology and consumers both move forwards. Netflix attracted customers and provided them good service with a special competitive advantage over it. Like for example, Netflix attempted to stock nearly every DVD available; something that Blockbuster couldn’t match and didn’t want to match. Also, it ignored almost 90% of the movies available, whi...

How Blockbuster went broke?

Netflix was founded in 1997 when the online movie rental was skyrocketing, becoming the world's largest and most influential film supplier. It was able to achieve this position through its interest in technology research and innovation to enhance its customers. Netflix’s main objective was to provide a DVD rental service and delivery mail order to its customers through the Internet by providing an enormous library of movies and series, and then it provides a high-definition video through the video streaming (Madrigal, 2014). Since its inception, it has a large share of the market despite the presence of many competitors as it puts the customer as the primary priority and introduces some competitive advantages, which include: Netflix’s prices are relatively low. It reduces the monthly subscription with a variety of plans to create more options for the customers, which leads to an increase in the number of customers by attracting that of competitors. Netflix has no returning dates fo...

How Netflix became streaming giant?

 Netflix was founded in Scotts Valley, California, in August 1997 by Reed Hastings and March Randolph. The whole idea for the DVD by Mail business was born out of Hastings’ own personal frustration from paying $40 in late fees for a video he had forgotten to return to Blockbuster.  Hastings’ was compelled to figure out a better way for consumers to experience what was then the new video format DVDs and began his quest to disrupt the traditional movie rental market and create a new industry.  Madrigal, A. C. (2014)  Blockbuster execs couldn’t understand the Netflix value proposition.  They thought movie or game rentals as impulse purchases and that the bricks and mortar model was better than having to sign up and wait to get something through the mail. Megan O'Neill (2011).  Blockbuster began a rentals-by-mail and streaming service belatedly in order to fight against it competitors like Netflix but they didn't come on strong enough or soon enough. It was a ba...