⚡ Argumentative Essay About Netflix
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They could have avoided this problem first by providing specific details for the price increase and secondly involving their customers and asking them if this plan would work. That way they could have gotten the important information about what their members are thinking. The creation of qwikster alongside Netflix created extra work for the members who would like to continue receiving dvds by mail plus also the ability to stream movies online.
The solution to this problem would be to keep both the services under one brand Netflix. By doing so it would be much easier for the subscribers to manage their account. It would be much better idea to offer discounts to those customers who were using both the services. They should have never separated Netflix into two business. Competitors have taken advantage of this due to which Netflix has lost a large customer base.
The management should have seen it coming and tried to solve this situation before hand. Netflix should try and offer more variety and maybe go beyond Hollywood. They should try and distribute more obscure movies that attract smaller audience and overtime the customer base will increase. The company is so far ahead of Amazon, that is producing about 20 times the traffic during the peak viewing time than Amazon is. The stock would become much more attractive if illegal streaming laws were tightened up, Godet, Weak Competitive Position While the company aims to be a leader in price, it is viewed as being the more expensive alternative to uploading content for free online.
In July, , the company learned that customer loyalty is a fragile thing. When it was known for its convenience and price up until the increase in price, the band had a loyal customer base. But that all changed with the price hike. While the increases in price were in order for the company to keep its mail-order and streaming service alive, the company claimed, many of the customers gathered on social networking sites to complain about the increase.
This generated conversation among people about what alternatives there are for the service. Many customers either reduced their use of Netflix or they cancelled the service altogether. While there are still those who value the company, customer loyalty is fragile, and it could take a while before the company is able to build its brand back up, Glagowski, This shows the company is underpriced for its shareholders, but it should be noted that the future of the business is largely unknown which makes this analysis not as useful as the aforementioned strategies.
A space matrix would suggest that the company should pursue an aggressive growth strategy in order to enter the world market. The downside to this is that many people could be instead utilizing the Internet for all of their streaming needs. In order to achieve aggressive growth in a positive way, Netflix needs to provide new TV shows a lot quicker than what it is currently doing. There are many online streaming services that offer TV shows the next day, or even hours after it is broadcast. The company has attempted over the last 13 years to learn about what the viewers want, but it has been largely unsuccessful in appealing to many of the crowds. Recommendation Once Netflix is able to uploaded more quickly, the company will appeal to a wider audience.
At that point, it can begin to win back subscribers and then lower the heightened price that lost a large percentage of its audience. Netflix should create a survey for its customers to see what the company is lacking, and what it can give people so that they will keep coming back. This needs to be augmented by rapidly expanding throughout the world. The company is actually doing both of these things and are moving forward with plans at a relatively rapid pace, though it is having some problems in Europe with getting licensed. For this reason and others the expansion throughout Europe will have significant costs. There is a lot of legal attention that goes into this expansion and the company will need to spend a lot of time in this area.
But several additional countries in Europe should come on board each year, and those within the European Union should be targeted first because they have similar laws for this type of activity. The idea of proving content faster will take significant upgrades and require high licensing costs. However, the reward could be substantial, as people will be more willing to go with Netflix if they are meeting demand. The licensing process of using new videos should happen immediately for a successful outcome.
In reviewing the success of these strategies it will be important to see which shows are coming onto Netflix and how rapidly they are. The European expansion will become visible as each country comes on board, and this will increase the capital that Netflix has to add to its library and at a more rapid pace. Godet, A. The Hollywood Reporter. Tomko, M. Ideas aplenty on how Netflix could win back customers.
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