Netflix Case Study

Central Issue

By 2008, Netflix has become world’s largest movie rental service with its subscription based business model, comprehensive movie selection and high customer value. However, Netflix has to face the most common issues any movie rental business would have to face. That is, Netflix’s services can easily be substituted for other movie services or free movie downloads, technology is growing towards video on demand and ability to find new customers and new market.

Recommended Course of Action

In order to successfully compete with its competitors and maintain its leading position in the market, Netflix should build more customer satisfaction by increasing its existing inventory and expanding its product line, focus more on video streaming technology and create brand awareness in Asian countries such as India and China.

1. Customer satisfaction can be improved by increasing the number of digital movies available in its catalog and by including video game rentals and digital music content. Partnership with video game manufacturers and record companies can help increase its digital content.

2. Create marketing campaign to raise awareness for advantages of video streaming and aim to download its digital content directly to TV screens by partnering with cable companies that offer video on demand feature to customers.

3. India and China are the two Asian countries that have been producing more movies than the US and there is a growing market for movie watchers in these countries. Netflix should aggressively market its services in these countries to create brand awareness that will encourage customers to subscribe to its services.