Video on Demand and Netflix Blockbuster Comcast Essay

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NETFLIX VISION
REED HASTINGS stated that “our vision is to change the way people access and view the movies they love”
NETFLIX MISSION
“Our appeal and success are built on providing the most expansive selection of DVD’s; an easy way to choose movies; and fast free delivery”
OBJECTIVES
Netflix objective is to as many free trail users to paid users as possible and to retain paid users over the long run. It achieves its objectives by building and enhancing customers.

DEVELOPING VISION AND MISSION STATEMENTS
MODIFIED VISION STATEMENT
The developed vision statement will be like
Being the best global entertainment distribution service
Creating markets that are accessible to film makers
Helping content creators around the world to find a global audience
And also “with better personalization, better user interfaces, better streaming and more contents we set a goal to influence consumers and entertain them in a better and easier way”
MISSION STATEMENT
The developed mission statement will be like
“Our mission is to become success by provide quality entertainment so that we can reach the unbelievable targets that were set to satisfy the customers and also being ahead in the prospective of technology

ORGANIZATIONS EXTERNAL OPPORTUNITIES AND THREATS
OPPORTUNITIES
Vast number of consumers
Extensive use of technology
Better consumer service
Periodical appraisal inside the organization
Good relationship with major studios
Good infrastructure to provide VOD services to its consumers
Expanding globally provides good competition

THREATS
Best competitors
Low price strategies
Higher maintenance costs in maintaining VOD services
Piracy
US law allows customers to buy a DVD and rent it as many times they wish

COMPETITIVE PROFILE MATRIX
Mainly Netflix has two competitors. They are Blockbuster and Comcast. These two are main competitors in this industry where Netflix has to face various number of issues.

Netflix
Blockbuster
Comcast
Year of establishment
1997
1985
1963
Market share
22%
35%
29%
Revenue
$2.1b
$5.2 b
$37.9 b
Subscribers
23.6 m
3 m
26m
International presence
8%
3%
6%
Quality of installation
7/10
5/10
7/10

ANALYSIS
If we observe carefully the competitive profile matrix first let’s start from year of establishment. The concept of online movies and renting DVD’s was introduced by blockbuster which is once a world leader. And recently there was a news that blockbuster was going to file for bankruptcy. After carefully analyzing the above matrix it is clear that blockbuster is unable to compete with the demand. Whereas if we see the market share of maximum is under the control of blockbuster with nearly 35%. Next share goes to 29% for Comcast and the least goes to 22% for Netflix.
In case of revenue it is clear that Comcast is staking high with more comfort whereas Netflix has very less revenue share and with $5.2 billion blockbuster is in the second position. The number of subscribers for Comcast were 26m whereas the least goes to blockbuster with 3m. Now coming to international presence Netflix occupies 8%

EXTERNAL FACTOR EVALUATION MATRIX

So, total weighted score of all opportunities and threats constituted to 1

INTERNAL STRENGTHS
Strong e-commerce technology
Supporting staff
Distribution centers
Nationwide human assets
Experienced and capable workforce
Quality control systems
Trained service representatives
Largest DVD library
Partnerships with well-known studios
Cost effective operating

INTERNAL WEEKNESS
Staffing conflicts
Stocks
Unable to install the new technology
Delays in delivery
Delays in performance appraisal

INTERNAL FACTOR EVALUATION MATRIX
INTERNAL STRENGTHS
Variety of offers 0.17
Financial stability 0.08
Customer satisfaction 0.15
Competition 0.07

INTERNAL WEEKNESS
Poor employee morale 0.18
Poor customer service 0.20
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