Netflix and Direct TV Case Study Research Paper

Netflix and need TV Case Study - Research Paper drillThese generic strategies include cost leadership, differentiation and cost focus. Netflix has managed to woo customers over the years for instance, it cracks free discharge membership to its new customers, which enables customers to try out its services. Differentiation Strategy Netflix has managed to maintain its market sh atomic number 18 via achieving a competitive advantage. This was the first order to break the norm of driving to a movie store to barter for a movie, therefore attaining a first mover advantage (Noise between stations, 2007). Other companies like megahit required an individual to drive all the way to the stores to purchase or rent a movie, although this community followed in the footsteps of Netflix, shortly after. Therefore, due to technology in this industry, customers can now select from thousands of movies online and choose their favorite. In addition, customers enjoy movie shopping from the comfort o f their homes or offices. The growth of online sales has contributed to the success of Netflix indeed, over the years, the company does not charge its customers for movie return delays, unlike Blockbuster. This differentiation strategy enables Netflix to be unique comp ard to its concern competitors customers are attracted to a business that caters for their needs effectively compared to other businesses. Netflixs Target Customers Netflix targets all levels of customers by implementing a subscription plan, which enables clients to subscribe to their preferred plan. This is an added advantage to the company as all levels of customers are catered for, therefore ensuring that customers foregather the best services at affordable prices. Netflix Rivals and Threats Posed In an industry, competition is evident either from alive businesses or from new entries in the market. According to the New York Times (2007), netflix experienced a heavy take up of loses due to the stiff competition from Blockbuster, which had implemented a total access program that enabled customers to swap a rented movie online for an in store movie. This strategy enabled Blockbuster to attract Netflixs customers. DIRECTV is another rival competitor, which provides come in broadcast satellite, and delivers exemplary video experience at a much cheaper price, hence posing a threat to Netflix (form 10K, 2010, p.2). Fig 1. The competition analysis of Netflix and Blockbuster (2007) Netflix and Direct TV Netflix and Direct TV companies are seeking a competitive advantage in their operating industry hence, they have different strategies of achieving their success. Direct TV aims at delivering the best services at all times and in any determine the company is emphasizing on quality video experience and targets the entire American population, especially with the popularity of DVRs. They are working towards breaking the norm of watching telecasting only at home, therefore working towards introducing goggle box and video experience any time and anywhere. Movie packages Direct TV is a threat to Netflix, since it is competing for the alike(p) market, therefore, customers can either choose to use either of the two companies services, to easily access entertainment. Both companies offer services at a specific monthly fee Direct TV offers four television packages in English language, with the minimal packager