In the previous chapter, the
book deals with environmental threats facing a firm. In this chapter we are led
to find a way to reduce, eliminate the threats, or to find other opportunities
that may exist. From the previous chapter, one of porter’s structures is that
of an emerging industry. Netflix is in this group. They are the originators of
this industry and responsible for many of the technological innovations that
have occurred. This is the reason they are in over 90% of the domestic market
and similar numbers internationally. The two areas that Netflix has the
greatest opportunities are in expansion and original content.
Expansion- Netflix has many
opportunities to grow their service both domestically and internationally. In
the US, with Internet packages getting faster and cheaper, this provides an
opportunity for Netflix to offer newer services such as four k streaming.
Internationally there is a large demand for US media along with local domestic
content making Netflix the obvious choice to capture those markets. They have
largest library of content in the world.
Original Content- Netflix has begun to bid
on original content such as, “House of Cards”, “The Fall”, and others, which
have received very positive critical reviews. This content is now responsible
for adding subscribers to Netflix. The unique thing about this content is for
the first time an entire season of a new program is released all at once,
making the phenomena of binge watching.
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