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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...
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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 consumers are looking, and so they took advantage of that opportunity. Knowing that you can watch any movie, anywhere and more importantly you can cancel anytime that you are not happy, then Netflix had challenged their workers to multiply their efforts, because they know that their customers can leave them anytime, they are not satisfied.

Talking about how it successfully gained an advantage over Blockbuster, to me is related to the impact of their value proposition and also with the advancement of High internet, because looking at “Watch Anywhere” made a huge difference between Netflix and Blockbuster, then with Netflix people don’t have to look for stores to buy or rent movies, but instead watching while traveling or inside their house. Another reason is the fact that the management had failed, As state Devaney (2018), “The irony is that Blockbuster failed because its leadership had built a well-oiled operational machine. It was a very tight network that could execute with extreme efficiency, but poorly suited to let in new information.”

Some technology innovations that Netflix was able to exploit
As we all know, one of the reasons that any company in nowadays, can have an organizational competitive advantage is being ahead other’s by using newer or stronger technology than them. So, with that been said, lets illustrate some of the technologies used by Netflix.

-          Content Distribution Networks (CDNs): As state Cloudflare (2019), “A content delivery network (CDN) refers to a geographically distributed group of servers which work together to provide fast delivery of Internet content. A CDN allows for the quick transfer of assets needed for loading Internet content including HTML pages, javascript files, stylesheets, images, and videos.” The popularity of CDN services continues to grow, and today the majority of web traffic is served through CDNs, including traffic from major sites like Facebook, Netflix, and Amazon.

-          Adaptive bitrate streaming: According to Ruether (2019), “Adaptive bitrate streaming provides the best video quality and viewer experience possible — no matter the connection, software, or device. Called ABR for short, the majority of these streams are delivered via HTTP-based technologies such as MPEG DASH and Apple’s HLS.” This technology helped the quality of screaming, so even though the internet connection is low, this technology will help consumers to enjoy movies or shows in High Quality.

-          Front-end: As state, Svystun (2016), “Except for Node.js, React and RxJS are actively used by Netflix engineers with the aim of building variable client applications suitable for different devices. Their final goal remains to provide an impeccable experience that will satisfy their customers and amuse with flawless performance. This goal encourages Netflix in constant improving its product and developing its own technologies. They also use Falcor – a JavaScript library developed by Netflix in order to achieve productive data fetching.

“disruptive innovation” and how Netflix fits the model of disruptive innovation
Clayton Christensen popularized the term "disruptive innovation" in his iconic book, "The Innovator's Dilemma," published in 1997.

The phrase describes a specific way that smaller companies can outcompete and eventually destroy their bigger rivals. And it has become an obsession for entrepreneurs, particularly in Silicon Valley. And according to Christensen (1997), “The primary reason why Netflix is disruptive is that, when it launched its mail-in subscription service, it didn't go after the core customers of competitors like Blockbuster. For Christensen (1997), this is a hallmark of disruption. A disruptive company targets segments of the population that have been overlooked by its competitors, delivering an inferior (but more tailored) alternative, often at a lower price.

Then, eventually, a disruptive company like Netflix moves upmarket. It keeps the advantages it had at the beginning and adds the things mainstream customers want. All of a sudden, there is no reason to have Blockbuster anymore. As state McAlone (2015), “In the case of Netflix, the huge shift came with the rise of streaming video. Netflix was able to appeal to Blockbuster's core audience by providing, "a wider selection of content with an all-you-can-watch, on-demand, low-price, high-quality, highly convenient approach."

Conclusion

Talking about Netflix in 2019 is a big deal, because we are talking about the leader of the streaming movies online in the U.S. and the one who is creating more traffic in internet. As state INFOCOM (2012), “Netflix is the leading provider of on-demand Internet video streaming in the US and Canada, accounting for 29.7% of the peak downstream traffic in US. Understanding the Netflix architecture and its performance can shed light on how to best optimize its design as well as on the design of similar on-demand streaming services.” Moreover, it is important to notice that the internet, new technologies and a great leadership from Netflix and its managers, because before internet people had to look for a Blockbuster’s store or Redbox, in order to enjoy these movies. Furthermore, the technology made a huge difference for Netflix to successfully gained a competitive advantage over others, because we know Adaptive bitrate streaming and Content Distribution Networks (CDNs) are very effective, due to the fact that people anywhere they are can watch an HD Movies without worrying about the qualities and more importantly since the beginning of 2018, the consumers of Netflix can download and then watch Movies or TV Shows offline, and I believed that is the deal breaker to keep their customers and increase their target audience.

 References

Adhikari, V. K., Guo, Y., Hao, F., Varvello, M., Hilt, V., Steiner, M., & Zhang, Z. L. (2012). Unreeling netflix: Understanding and improving multi-cdn movie delivery. In INFOCOM, 2012 Proceedings IEEE (pp. 1620-1628). IEEE. Retrieved May 10, 2016 from http://www.hit.bme.hu/~jakab/edu/litr/CDN/NetFlix12.pdf
Cloudflare. (2019). What Is a CDN? How Does a CDN work? | Cloudflare. Retrieved April 26, 2019, from https://www.cloudflare.com/learning/cdn/what-is-a-cdn/
Devaney, E. (2018, August 30). 3 Things Marketers Can Learn From The Rise Of Netflix (And The Fall Of Blockbuster) – Drift. Retrieved April 26, 2019, from https://www.drift.com/blog/netflix-vs-blockbuster/
Pogue, D. (2014, December 30). A Stream of Movies, Sort of Free. Retrieved April 26, 2019, from https://web.archive.org/web/20160322100820/http://www.nytimes.com/2007/01/25/technology/25pogue.html
Ruether, T. (2019, April 20). Adaptive Bitrate Streaming: How It Works and Why It Matters | Wowza. Retrieved April 26, 2019, from https://www.wowza.com/blog/adaptive-bitrate-streaming
Svystun, L. (2016, September 1). What Technology Stack Is Netflix Built On? Retrieved April 26, 2019, from https://letzgro.net/blog/what-technology-stack-is-netflix-built-on/

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