516-Q195

5

The essential case study facts are the impact of new technologies onrapidly multiplied consumer opportunities to view movies. Newtechnologies and electronic products have made it possible for peopleto view movies more. Initially, home viewing was possible throughPC’s, DVD players, dvr’s or TV. One would access a movie DVD’sthrough retailers like wal-mart or rent from movie galleries. JoiningNetflix, or any subscription services to have the movie maileddirectly home or subscribing to cable movie channels like Starz, HBOand Showtime followed shortly. Streaming movies to the pc’s usingthe cable or satellite TV remote on a pay per view basis is a recenttechnology for movies. The strategic issue in this case is rapidlymultiplied opportunities to view movies resulting from theever-advancing technology (Thompson, 2008).

The strategic tools and analysis options on the multiplied consumeropportunities to view movies can be conducted through a SWOTanalysis. The strength of the multiplied opportunities for movies ismore demand for movie products. Its weaknesses are outgrowingelectronic products like the DVD player as new technology upgradesand takes over. The opportunities for movies are numerous as each newtechnology facilitates more video demand. The potential threats areadvanced technologies. My recommendations would be moving with newtechnology as a solution to meet consumer opportunities. Therecommendation will help if Netflix for example, upgrade theircompany to cable movie channels to meet the multiplying movieopportunities. This recommendation will increase the viewers throughpay per view basis and profit sales too. The analysis I conductedlead to this recommendation because now many movies are viewed viacables or satellite TV remotes.

The table below shows how technology has progressed to meet rapidlymultiplied movie consumer opportunities.

Theatres

Big screens, films

Homes

PC, TV, Video game consoles

DVD (2008),DVD+Recorders,

DVD blu ray players/recorders

Personal media viewing library

DVD from downloaded/recorded files

Movie DVDs from retailers

Movie DVD’s from galleries or blockbusters

Join Netflix

Subscription services(HBO, Starz, Showtime)

Download from Apple itunes / websites

Home

Stream to the PCs or TV using cable/satellites

Netflix is one of the huge companies in the entertainment industrythat has attracted a large population of subscribers. It is veryimportant for the company to establish its services by utilizing thenew technologies to the latter and ensuring personalization of itsproducts. This means that the company will be able to offer qualityservices in terms of movies to all its subscribers and at the sametime it will offer the company a platform to recognize its customersbetter. Netflix will be able to do this by ensuring that it keepstrack of all its customers and analyzes their behaviors to establishthe kind of movies that they normally watch. The trends will enablethe company to suggest best movies that fit the genres the consumersnormally take. It can also do this by analyzing viewer ratings ofcertain movies, such that all the highly rated movies are suggestedfirst. The recommendation will go a long way to boost the company’srevenues in the long run. Additionally the recommendation fits wellbecause the company will be able to have a bargaining power in themarket (see appendix 1).

Netflix ought to adopt powerful suppliers who will ensure that thecompany has all the latest movies that its consumers need. Thisrecommendation will help the company to increase its profitabilityand ensure customer satisfaction. By expanding its offering in thetail end of demand increase Netflix is able to increase itsprofitability (see figure 1). Netflix also needs to obtainindependent films which are not picked up by large film companies, asthis will provide it with a competitive platform in the market (seeappendix 1). Netflix must ensure that it increases its accuracyalgorithm this recommendation will boost the consumers’ trust andreliance on content availability. Finally, licensing and windows playa significant role in content availability

Figure 1

Reference

Thompson, A. (2008). Movie case study, The university ofAlabama.

Appendix1