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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...

Netflix used Disruptive innovation

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, which let customers moved out from them and use Netflix instead. (Digital Business Models, Analysis of the Netflix Business Model, 2016). Blockbuster filed for bankruptcy, it lost $518 billion in 2010, running $1 billion in debt, and closed most of its outlets. (Bill Halal, How NetFlix Beat Blockbuster)

Netflix is currently the dominant company in the relatively young on-demand media industry (Investopedia, 2018).
Below are some of Netflix innovations:
·      Netflix started its business by sending DVDs on mail whereas blockbuster left far behind. Consumer found it more convenient and saved their time.
·      Netflix stock every DVD available, so it builds a rich library and attracted more customers to use its service. Netflix benefits from economies of scale and economies of scope.
·      Netflix developed a recommendation engine that correlated past rentals movies from its catalog, making the long tail successful.
·      Netflix introduced subscription business model for the digital world (all you can eat business model) and with the cellphone data plans which provide unlimited usage, Netflix provides unlimited access to media content too.
·      One of the features Netflix introduced, it analyzed and tagged almost every movie and TV show. Reviews added another value for it.
·      Netflix uses advanced and new technologies. It allows customers to watch movies through TV, computer, and cellphone. It provides customers with entire seasons of established TV series at once, in contrast to broadcast and cable TV’s once-a-week model.

3-Netflix is often used as an example of disruptive innovation. Using the LIRC and the internet, research the concept of “disruptive innovation” and then discuss how Netflix fits the model of disruptive innovation.  Consider what role technology played in achieving the disruptive innovation that provided Netflix with a competitive advantage.
The theory of disruptive innovation was invented by Clayton Christensen, of Harvard Business School, in his book “The Innovator’s Dilemma”. Mr. Christensen used the term to describe innovations that create new markets by discovering new categories of customers (A.W, the economist, What disruptive innovation means, 2015)
Netflix used Disruptive innovation as a term because it started as a small company in the market and kills it’s all big rivals and competitors by following simple rules of business. Netflix created its own new market and disrupted the existing one.
Netflix did several things to beat its competitors: (Adam Richardson, Netflix’s Bold Disruptive Innovation, 2011)
·      It focuses on increasing talent density more rapidly than business complexity increases
·      It focuses on rapid recovery: recognize problems when they occur and fix them quickly, rather than predict every outcome ahead of time.
·      It provides its customers high quality, low price, and more convenient whereas existed market leaders like blockbuster failed to provide.
Netflix initiates itself as a smaller company, therefore, it was overlooked by its competitors which proofs as an advantage for Netflix.


References:
Digital Business Models: Analysis of the Netflix Business Model, 2016
Bill Halal, How Netflix Beat Blockbuster, http://billhalal.com/?p=295
Investopedia, 2018, How Netflix is changing the TV Industry, https://www.investopedia.com/articles/investing/060815/how-netflix-changing-tv-industry.asp
Adam Richardson, Netflix’s Bold Disruptive Innovation, 2011, https://hbr.org/2011/09/netflix-bold-disruptive-innovation

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