The Video-Streaming Wars In 2019: Can Disney Catch Netflix Case Study Solution
Alternative-3: In source & Outsource content
As Disney had already invested & launched in this market with the effective strategy. Increase their membership numbers & urge to find more content by achieving insource &outsource contents. Invest more in advertising so that customers will aware of what exactly they are offering in different areas.
(Pros & corns for each alternative have been discussed in appendix- Exhibit: 2)
Recommendations
Every firm have to take care of its customers, supplier, creditors, stakeholders & others to staying in the global market world. Disney provides its customers with best quality movies with animated features, now entering in the video streaming market with the most effective strategy. Disney & Netflix must come on one place & agreed for some future expects because they both are leading companies. As Netflix has monopoly in this industry, Disney must concern about that & propose such a strategy that benefitted both.
Implementation
Netflix providing video streaming services, making contract with the suppliers for content video & the Disney is providing their original content with the huge market share in the kids market. Currently entering in video streaming market, make a contract with the Netflix that they firstly focus on the kids market share. This creates space for both to secure their future markets. Make their entrance easy & reduce the threat chances by negotiation with Netflix. Make realize Netflix that it will benefitted both firms & save their market share.
Conclusion
Disney the leading entertainment company provide 3 s with the wide range of content to its customers. Netflix on other hand provides is a giant in video streaming company. Disney+ with effective strategy investing in the video streaming market, increasing threat for Netflix. In this intense situation, both firms come together to dig out possibilities for their future concerns. They can share the markets by exaggerate the levels, like Disney have huge experience in kids entertainment then they should come for a solution to firstly start as a video streaming content for kids.
Appendices
Appendix-1: Porter’s 5 forces- detailed
Appendix-2: Pros & corns of Alternatives
| Pros | Cons | |
| Alternative-1: negotiation with Netflix | Ø Reduction in the threat
Ø Ensurance of particular target market Ø Not change of policy due to competitive rivalry Ø Easy entrance |
Ø Sharing potential markets
Ø Negative impression to the subscribers Ø Sharing profits
|
| Alternative-2: exploring potential undiscovered markets | Ø Increase in revenues
Ø Low competitive threat Ø Increase in potential market |
Ø Huge investment
Ø Threat of losses Ø Not welcomed |
| Alternative-3: In source & Outsource content | Ø Attracting more customers
Ø Competitive advantage Ø Large amount of content |
Ø Increase in cost
Ø Low quality of content Ø Risk of consumers’ dissatisfaction |
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