Flexibility in the business world is when a company can make changes
quickly and without great expenditures to adapt to a changing environment. These
changes can be technological as well as market changes and competition. Everything
changes and recently very quickly. Netflix has been adept to either anticipating
or reacting to changes within their industry.
There are many risk factors evaluating Netflix and the industry they are
in. This is a very new industry, and even though Netflix is by far the most
dominate player in it, there is still possibilities for risk. The biggest risk
facing Netflix is if there is more than one major competitor entering the market.
This market when fully matured will always be able to handle two major players.
As long as, Netflix is one of the players, this risk is reduced. Content can be
a major risk factor in this industry. It can become very expensive and
difficult to pass along to a customer who is used to paying a very low rate to
subscribe. The other problem with content is if it’s no longer available to
Netflix, but is available to their competitor.
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