“Outside in” Strategy

1. Is the concept of “Outside in” strategy consistent with the marketing concept? Why? Choose a company not discussed in the article that you feel embraces the “Outside In” strategy. Why do you think so? Provide examples.

Philip Kotler and Kevin Keller asserted that the marketing concept holds the key to achieving organizational goals. The marketing concept relies on being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets. In my opinion, the concept of “outside in” strategy is reflective of the marketing concept in that it looks to analyze the customer’s needs and then adjust their business practices to satisfy their needs.

An example of such “outside in” approach is Netflix Inc., which used to offer DVD rentals via mail for a flat monthly fee. With the advent of the high speed broadband internet, Netflix realized that they could deliver movies/TV shows to most internet enabled devices such as smartphones, tablets, personal computers and internet ready TVs. As a result they catered to the consumer on the go who would utilize such mobile devices. Furthermore, they’ve cut down on costs by avoiding the use of the mail service as well as eliminating the need to manufacture numerous DVDs. This cost cutting was also passed down to the consumer as the internet streaming monthly fee is less than the previous DVD mail order fee. Another example of “outside in” strategy employed by Netflix is when Netflix CEO and Co-founder, Reed Hasting, posted an announcement on the Netflix blog that the original DVD section would be branched off and renamed Qwikster. They wanted to separate their DVD rental business from their internet movie streaming business. Customers were displeased with this mostly because this would result in paying for two separate services which previously could be purchased together for one flat rate from one company. Following negative reactions from customers, Netflix CEO announced...