Netflix inc.: The Disruptor Faces Disruption Case Study Analysis
Nokia became the leading supplier of mobile phones and Samsung was considered to be its strong competitor, because of their market share andtheir status of being the multinational companies as well ashighly productive companies, having a strong brand value in common. Both the companies had been leading the market for many years with different strategies, but for the same interest of higher profit, increasing sales volume and more market share. However as a CIO, I would recommend the CEO/Board of directors of both the companies to focus more on their pricing strategies and qualities, because in modern era; there is no perfect market and in order to lead the market, one must have competitive edge to attract the customers with consistent innovation.
4) What were the sources of Netflix’s risk of failure at video downloading/streaming? Why? What risks did Netflix face if it was successful at video downloading/streaming. Justify your point of view.
Netflix experienced the significant cost occurrence and risks associated with downloading/streaming content, such as: licensing issues which had terms dictated by the content owner,which resulted in the occurrence of conflict of interest for Netflix.Moreover, due to the competitive rivalry; it couldn’t get its license renewed for streaming contract with Starz network, because of the unacceptable terms which made hole in its available inventory.
While entering into the streaming/downloading market; there were traditional web giantsand home entertainment outlets,implementing a variety of strategies to make profit and lead the market. These competitors included: Google LLC, Hulu, Amazon Prime video, FacebookInc., Home Box office, Sling TV and Dish’s Live TV service. However the need of rapidly changing technology and the need of innovation were also posing risks for Netflix, because of the requirement ofmassive investments to be made into the existing capital infrastructure, which cannot be fulfilled if a company runs out of cash flows.
Conclusion
After analyzing all the factors associated with Netflix and its competitor mentioned in the case study; the outcomes of the entire journey is that: consistent leadership, strategic investment decisions, timely adoption of technology and innovation, flexibility in decision making, aggressive attitude towards risks can make the organization capable of leaving marks in the market, which happened in the case of Netflix, as it is in the top 10 listed streaming content provider, globally....................................
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