MGMT 670- STRATEGIC MANAGEMENT Case Study Example | Topics and Well Written Essays - 1250 words

MGMT 670- STRATEGIC MANAGEMENT - Case rent ExampleThe DVD had in reality created a wave among the Americans and it has been estimated that during the form 2008 much than 85 sh atomic number 18 of the US households had this player. Apart from this, individuals could also real considerably subscribe for characterization DVDs and reward them delivered to their home, by joining subscription services like the Blockbuster and Netflix companies. The advent of the internet into the homes have created a impudently platform, which has enabled multitude to watch downloadable picture shows. Many downloadable sites are available over the internet like the Netflix, Blockbuster, which allow the people al over the world, to either watch movies online or download them to their personal computers. (Thompson 2008) Home Movie renting Business and Economic characteristics 1. The future movie experience for the worldwide audience is going to get unvoiced on the home viewing category, since mo re and more famous companies like the Netflix and Blockbuster are on the path of streaming movies, directly to the viewers big screen televisions. This could result in the start of an era, that could well enable the viewers world over to watch movies online or through the televisions, by subscribing with their air or cable operators. 2. Though most of the movie companies in the past have been much backward when it came to the provision of the video on demand because of the inherent threat of piracy, still some companies have changed their military strength ever since. They feel doubtful about the extent of the profits, that they could very well acquire from such a business model and hence they have shown a positive bias with regards to the streaming movies online that cannot be pirated. . 3. The online movie download and streaming facilities with the increase in the internet service the world over, have made the online movie rental business quite attractive. (Thompson 2008) Compe tition in the Movie Rental Industry Thus the motility now boils as to how the cheer industry is going to move forward in the coming years, with more and more breakthroughs taking place every day. Indeed this has made the competition much tougher between the sundry(a) companies in the US and the foremost among them have been the Netflix and the Blockbuster companies, which have been very much in the forefront, when it comes to the entertainment segment and in the business of providing their viewers with unique entertainment and movie viewing experiences. (Thompson 2008) Netflix Driving Forces The year 2008 as already mentioned before had indeed become an important year, which had marked a change in the way people started to watch movies through rental videos. It started the subscription era of movies with the advancement of internet technology and the largest online subscription friendship turned out to be Netflix. Netflix Key Success factors The uniqueness that can be attributed to the Netflix success, can very much be attributed to the business model that it pursues for marketing its movies online. This is because Netflix through its online portal very well gives its subscribers the aforementioned(prenominal) kind of benefits that they get, when they visit their closest online video stores. They can pick from a wide variety of movies that are offered on the Netflix website and at the same time save valuable time, in case they had to rent it from their nearest rental video store by physically walking in and picking out the video. The distribution and the fast mail delivery system of providing the customers with