Netflix Corporation started its rental company in 2000 which expanded into the leading DVD and Online Video steaming company in world. This was the most innovative product to watch videos and movies on DVD and online. Netflix provided rental service for list of top movies and delivered them. The monthly subscription, flat rental system with no late fees, shipping fees was very different from the traditional video store. The price was a bit high but due to quality people didn’t mind to pay extra.
Introduction Barnes & Noble is the biggest company in the Book Retail Industry. This mature industry experienced growth a growth slower than overall retail sales over the past years. In this industry, the suppliers have a low influence over book sellers, and the barriers to entry are very high, But Internet has changed completely this industry. Due to Internet, the buyer power became quite high, and the substitutes increased, so did the rivalry.
This distribution channel is declining within the retail bookselling industry due to the increasing popularity of online purchasing and new digital technologies. Online retailers offer a wider selection and lower prices while eBooks have begun to replace the need for physical books. These changes offer greater convenience, thus shifting consumer preferences. Consumers now find in-store purchasing less attractive, causing traditional Barnes & Noble brick-and-mortar stores to become increasingly out-of-fashion.
NETFLIX Introduction Netflix was established by Reed Hastings with an idea to offer a home movie service that would do a superior job at satisfying customers than the traditional retail rental model, eventually evolving a business model that was highly disruptive to retail video rental chains. The combination of a large national inventory, a recommendation system for viewers across a broad catalogue and a large customer base made Netflix a popular name among customers, especially as a distribution channel for lower-profile independent films. Over these years, its revenues have increased an average of 23.6% a year to $4.4 billion; its net income rose 12.5% a year to $112 million; and its stock price soared a whopping 1,503%. Business Model
3.3 Customers and Competitors Customers Amazon customers consist of upper & middle class social groups who have inclination towards using E-commerce portals and are comfortable with online shopping. Majority of the customers are professionals or businessmen who are busy with their business/Job & find it convenient to purchase anything online rather than visiting the physical outlet in order to save time & money. Furthermore, the customers might also be the ones who are searching for deals.
Amazon was one of the top online bookstores, which soon converted to the top online retailer across the world, and currently, even though it has a lot of competition, Amazon has a strong base of loyal customers who repeatedly buy from the online retailer. It is often referred to as the online equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies. Here is the SWOT analysis of Amazon. Amazon.com sells in 11 countries and ships internationally. It is one of the biggest retailers and is steadily growing every year.
Litman and Kohl (1989) expanded the initial model by including more explanatory variables. They have found that some of the variables, such as Academy Award dummies or Christmas release, were no longer significant. There are numerous modifications of Litman and Kohl (1989) model all of which use either rental income or box-office revenue as a dependant variable and come to very similar conclusions. While being able to empirically support some of our guesses of what makes a movie successful, such general studies lack deep analysis. Variable-focused studies, on the other hand, explore the effect of some particular variables (Star Power, critics’ reviews, release dates, advertising, quality) on the movie success and can, therefore, offer a deeper insight into the mechanism behind a movie
The business model of Amazon ensures that the product is available for the customer at the best possible price. The fast shipping strategies also ensure customer satisfaction. These aspects offer an excellent value proposition to the customer. Since Amazon is present globally and is successfully into business for a long time period, the strategies of Amazon are sustainable.
A cultured man is a conquered man, and a conquered man will conquer. Though Bourdieu contradicts himself asserting cultural capital as primary while at the same time "subordinate to economic capital" (Swartz pg. 79), certain aspects of cultural capital remain superior to the general aspects of economic capital outlined in Swartz’ analysis of Bourdieu leaving it as the ultimately dominant form of capital. Particularly, the fact that cultural capital has a higher rate of accessibility to yield than economic capital makes it a much more lucrative form of capital to invest in for those with little capital to begin with. Cultural capital is a connection to what Bourdieu describes as culture "verbal facility, general cultural awareness, aesthetic preferences, information about the school system, and educational credentials" (Swartz pg. 76).
In this market, the long run average cost decreases as output increase making it very difficult for new companies to enter the market (textbook). Since the marginal cost per new subscriber is next to nothing, the average cost decreases with every extra subscriber. A new company would have a very difficult time because they would have similar cost, but many less subscribers making their average cost quite high. The two competitors that successfully entered the market after Netflix, did so with the financial backing of firms that were already successful and could absorb the initially high average cost. Another less important barrier is how well known and popular services like Netflix, Amazon Prime, and Hulu Plus already are.
Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018).
It is noticed that Netflix focuses on their business function heavily because of the growth they are facing in the market. The company is adopting all the possible and important characteristics and features through which business aspects can be improved. It is noticed that they focused on their supplier chain managed as they have signed an agreement of revenue sharing with extraordinary 50 distributors of film. This means that the company is making efforts to promote their rental DVDs service as making agreement with the big film distributors is the effective core competency of Netflix. Moreover, the company also focuses on their operation in the manner that they adopt latest technologies to make sure that functions becomes fast and efficient.
The two major competitive forces that have challenged the movie industry are new market entrants and substitute products and services offered. The new market entrants such as online movie websites (CinemaNow, MovieLink, Youtube, etc.) have challenged the way movies were originally viewed on televisions, in theatres and through movie rental. These new market entrants are also beginning to use substitute services, such as providing movies online by enabling customers to download rentals and utilize video-on-demand services in the comfort of their own home, 24