Netflix Porter's 5 Forces

Related Essays

Porter's 5 Forces
health care and philanthropy. "Porter's five forces" have shaped a generation of ... online video rental services such as Netflix, and the rise of internet video sites
Sony Porter's Five Forces
video game console industry and apply Porters Five Force model to SONY. Sony is a ... it has also an easy integration with Netflix for on demand movie/tv show rental
Porter's Five Forces Model
movie rental business using Porters Five Forces Model and will explore ... impact on the market that Netflix rules. Also when Netflix angered its subscribers by
a Comparison Of Sun's Java 2 Enterprise Edition (J2Ee) And Microsoft's .Net Framework Using The Porter's Five Forces Model Of Competition
of J2EE and Dot.NET based on the following elements of the Porter's Forces Model of competition: (1) Industry Competitors – Rivalry among the firms; (2) Potential

Submitted by to the category Business and Industry on 01/30/2011 04:29 PM


➢ Founded in 1997,( went public in 2002)

➢ Found by hasting an entrepreneur who already had found and sold a software company in 1997.

➢ The idea came from a late fee for rental of Apollo 13.

➢ Flat rate rental to customers in U.S only

➢ Largest online DVD rentals

➢ 100, 000 titles/ 800 million subscribers

Pestel: (macro environmental trends)

➢ Political:

➢ Economical:

- Increasing number of internet users

- high cost of content/ delivery

➢ Social:

- People appreciate the no-late fee idea

- More convenient

➢ Technological:

-Recommendation System offered by Netflix


- Blue-Ray

-Video Streaming

➢ Environmental:

- Less/ eventually none DVDs( less waste)

- No traveling to Rental stores( less pollution, less energy consumption)

➢ Legal:

- License agreements ( is that the same as their profit sharing agreement)

- Lawsuit ( False advertising in 2005, patent infrigment with Blockbuster)

Porter’s 5 Forces:

1. Threat of Entry: High( examples: Vongo( Discontinued on Sep 30th 2008), Moviebeam( failed because the networks assumed the watchers will watch what the networks thought they’d like, so no system like Netflix)

- Block buster,,movie gallery…

- Pretty easy to enter,

- Barrier of entry is limited


2. Suppliers: Moderate ( based on Independent Movie Studio)

-Delivery systems( UPS)

-Movie Ditributers

-Movie studios( Independent)

3. Buyers : high bargaining power for the buyers due to various home video providers and various means of delivery( online or by mail), many choices

- Subscribers,

4. Substitutes : Relatively...

View Full Essay
Full Essay Stats...
  • Words: 316
  • Pages: 2
  • Views: 3153

Join now to view this essay and thousands of others on It's free Join Now!