Netflix Assessment

1. Describe Netflix’s business model

Netflix uses a business model that uses various inputs to create economic outputs for the overall success of their company. The main innovation that drives their business model is the accessibility of their products to their market segment. By allowing their customer to access a plethora of movies and television shows from the comfort of their own home, Netflix sets themselves apart from their main competition, Blockbuster.

Market Segments- Netflix aims to please a target market of a more technology-savvy crowd. A large percent of their target market streams Netflix through the use of a gaming console or some other newer technology. This target market will likely be wealthier, a clue from the fact that they are able to obtain and use newer technologies.

Value Propositions- Netflix aims to provide ease of use, accessibility, and a good value for their proposition. By using low, monthly premium subscriptions for payment, they give their customers a good value. With the ability to use their service anywhere that has a gaming console and an internet connection, Netflix also gives their customers easy access to their service. Through this, customers derive a high value and are willing to pay the premium subscriptions each month.

Growth Strategies- Netflix depends on its core competency to help their business grow. By advertising the service’s value and accessibility, it hopes to create new opportunities to gain new customers. Netflix teams up with various forms of new technology to help provide their service, such as the iPad, Xbox, Playstation, and other wireless internet technology. By using these popular forms of entertainment as a medium for their service, Netflix hopes to add the customers of these products to their business as well.

Value Chain Structure- The structure the Netflix uses to create value to its customers uses their technology and accessibility to gain the value created through their service. By providing...