Netflix Vs. Redbox Industry Essay

1016 words - 5 pages

How is it that Netflix and Coinstar’s Redbox have thrived in the DVD rental business and brick-and-mortar companies like Blockbuster were forced into bankruptcy protection? According to CEO and founder Reed Hastings, value is the reason. As we know from class, value is defined by customer/consumer and companies that offer value turn buyers. One great example of a company’s value turning buyers into lifelong customers is Apple. Apples success with iPhones, iTunes and Mac computers have proven that value through excellent customer experiences creates lifelong clients/customers.
Netflix does not have an “official” mission statement, but founder Reed Hastings refers to its brand promise as a “quest” and goes on to say “We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “

Netflix however has published their nine company values, which provide further clarification about the principles that guide their employees in their daily decisions and activities. Netflix Company Values were published as...
• Judgment
• Productivity
• Creativity
• Intelligence
• Honesty
• Communication
• Selflessness
• Reliability
• Passion

Netflix is an online company with corporate headquarters in Los Gatos, California. Netflix was founded by Hastings who is also the CEO of the company. Netflix’s key business is online rental services in the software industry. Netflix’s software business services span various software products and services. Among these are DVD movies and several other software products. Despite disappointing results on its performance at the beginning, the innovative entrepreneur continued to modify the company while identifying and exploiting new opportunities that presented themselves. That was when the company designed and developed a website that saw it host millions of subscribers making it rake in huge profits.
Netflix was founded at a time when the video industry was largely populated by small retail outlets which were characterized by long product delivery time. The market was dominated by the giant Blockbuster Inc. Blockbuster had no real marketing strategy and customer royalty was based on impulsive buying. It had huge amount of sales with almost 100 percent success when Netflix joined the market.
Upon its entry into the market in 1997, Netflix realized that the market that was dominated by the brick-and-mortar marketing methods. The method of this company was at the time of the beginning of internet retailing. Online selling was gaining a new opportunity to a traditional way. This compelled Netflix’s to have its own website in 1998 that specialized in the use of cross platform technologies in service delivery. At this time, different pricing models were tested to increase sales volume.
Netflix was also adept at countering new entrants and developments in the market. One of this was the development of a video...

Find Another Essay On Netflix vs. Redbox Industry

Porter's Five Forces Model and The Movie Rental Business

916 words - 4 pages five criteria for the model--Buyer Power, Supplier Power, Threat of Substitution, Competitive Rivalry, Threat of New Entry, and the movie rental industry will be scrutinize. According to the history of movie rental, home video, and gaming, Netflix was the first company to introduce the movie rental service back in April of 1998 and offered more than 900 titles (Lardener, 2010). Ever since, the industry has become larger with new technology

Financial Distress: Bankruptcy Essay

1541 words - 6 pages financial crisis. Many of Blockbuster financial problems came from competition from Netflix, and Redbox DVD rentals. Customers were no longer using Blockbuster stores they were using quicker and cheaper rental methods. Not only did Blockbuster competition put them in a financial distress, but Blockbuster also struggled since Viacom (VIA) spun off the company in 2004. (McCarty, Sandler, & Kary, 2010) Blockbuster had to pay Viacom shareholders a

Final Marketing Plan

6761 words - 27 pages cost of the movie will be entertained as part of the pizza package. The quantity of movies would be determined as per the status of the customer and how many they currently have in hand. If the customer wants more than one movie, then an added fee would be charged in order to offset the costs at the time of delivery. The DVD's would be sent in an envelope similar to Netflix and Blockbuster's mail order system. The customer would have the option

Media: Hindering the Adolescent Generation

2006 words - 8 pages In recent years, media has crept its way into every aspect of adolescent lives. Now, news stories cover everything from Obamacare to Kim and Kanye’s baby, Nelson Mandela’s passing to same-sex marriage. Social media websites like Facebook and Twitter have consumed free time, turning teens into scrolling machines, desperately searching for wifi hotspots. Cable networks, Redbox, and Netflix have changed television from a question of “What’s on?” to

Marketing Thinking

9495 words - 38 pages could buy this superior product at a lower price?$499 vs. $379? Bargain?Focused on competing with Apple. The consumption experience may leave consumers feeling good about their purchase and the price they paid. They will feel they got more specs for their money.Apple's iPad Air: in brief:This commercial strikes up the desire to own one. It strings along a series of activities that a traditional

Spotify vs. Pandora

2533 words - 10 pages -battle/ (accessed November 2, 2012).Tate, Ryan. "Spotify Muscles Into Internet Radio, Makes Pandora Look Small." Wired. (accessed October 30, 2012)."Spotify Hits 20 Million Monthly Users and Could be on Track for 8 Million Paid Users1 Year From Now." Music Industry Blog.

Net Neutrality

2591 words - 10 pages affects society, how it has both positive and negative effects to the end user and its effects on industry. Net neutrality also introduces to the government rules and regulations that have already been put into place by the Federal Communications Commission and the United States Government but more that will be made in the future concerning the availability of data to users and how it should be distributed by ISP's in a young technological advance

Bezos case study

7622 words - 30 pages website. If you do not follow these guidelines you will lose marks.Advice on writing style and presentationSome students find assignments such as this to be difficult due to the relative lack of structure - this is no different to management problems you will eventually face in industry and commerce. No correctly answered list of questions or mechanical process will lead to the "right" answer. Indeed, there is no "right" solution to many

Reality and Illusion in Shakespeare's Hamlet - Reality, Appearance and Deception

896 words - 4 pages Reality and Illusion in Hamlet   Shakespeare’s play, Hamlet, begins with the appearance of a ghost, an apparition, possibly a hallucination. Thus, from the beginning, Shakespeare presents the air of uncertainty, of the unnatural, which drives the action of the play and develops in the protagonist as a struggle to clarify what only seems to be absolute and what is actually reality. Hamlet's mind, therefore, becomes the central force of the

Sub-plots in Hamlet

1118 words - 4 pages Sub-plots in Hamlet   There are many things that critics say make Hamlet a "Great Work," one of which is the way that Shakespeare masterfully incorporates so many sub-plots into the story, and ties them all into the main plot of Hamlet’s revenge of his father’s murder. By the end of Act I, not only is the main plot identified, but many other sub-plots are introduced. Among the sub-plots are trust in the Ghost of King Hamlet, Fortinbras, and

Hamlet as Victim and Hero

1301 words - 5 pages Hamlet as Victim and Hero      Hamlet, Prince of Denmark, a Shakespearean tragedy, tells the story of Prince Hamlet, who gained the knowledge of a terrible incident that his kingdom had suffered. Claudius, the king of Denmark and Hamlet's uncle, had killed his own brother, the king, who was also the father of Hamlet, and married his brother's widow. Hamlet suffered these traumas to a severe degree, and his only relief was to defeat his

Similar Essays

Netflix Essay

3800 words - 15 pages control as much as possible via original content.Case Study 2 - NetflixNetflix's main issue is they face increased market competition from new entrants into their industry. In addition, Netflix suffers poor relationships with suppliers, which interferes with their ability to meet market demands leading to increased costs and the need to increase prices. This affects Netflix's ability to increase market share, and maintaining core values, resulting in

Netflix Essay

4714 words - 19 pages the most popular activities. Therefore, the movie industry was a gigantic industry in the U.S., and the buyers power was somewhat high. There were many subtypes of the movie industry, and one of them was movie rental. Netflix highly valued its relationship with its customers. Neil Hunt, in 1999, addressed that Netflix were once spending roughly from $100 to $200 to attract one customer, that is, a relatively high amount of money compared to its

Coinstar Essay

1988 words - 8 pages America; Redbox has served more than 40 million customers. Redbox continues to change the DVD rental industry with kiosks located in the nation's leading grocery stores, convenience stores, discount stores, and other locations nationwide.Redbox got its start with the launch of its DVD rental kiosks in McDonald's locations in Denver, CO, Minneapolis, MN, and Houston, TX. Redbox needed a solution that was able to increase DVD capacity over existing

Netflix Essay

2080 words - 8 pages concept with unrivalled success. Having a first-mover advantage, Netflix has identified a niche based on customer needs and responded by utilizing the internet to focus on customer convenience and timely delivery of DVD’s across the US. They have since expanded their facilities throughout the United States and have established themselves as industry leaders. Competitors such as Blockbuster and Hollywood video were relatively slow to respond