Software

Netflix: A Business Case Study

What is Netflix?

Netflix is an app, as well as an internet TV company that provides movie streaming and even has its own popular series. It was founded by Reed Hasting and Marc Randolph in 1997, and its main headquarters is in Los Gatos, California.

Why Was Netflix Created?

Hastings came up with the idea of starting the company Netflix after he was told that he had to pay overdue fees of $40 for not returning the movie Apollo 13 on time. It was originally a website that just rented DVDs in the mail, and customers would pay per rental.

Netflix has done exactly what its founders wanted, it’s completely disrupted the DVD rental market — see this article about the death of Blockbuster.

When Did Netflix Switch to Mainly Internet Streaming?

Netflix launched the well-known subscription and selling service in 1999, two years after it was founded. However, they did not begin streaming movies until the year 2007, which was the beginning of Netflix as we now know it.

Netflix’s Company Finances

The company’s stock is currently being sold for $143.83 and in the year 2013 the company made $4.3 billion in revenues with 48 million worldwide subscribers. By the year 2016 the company had $13.5 billion in assets alone, which an increase of almost $10 billion.

Netflix’s Business Advantages

Netflix is now a brand name that is known worldwide, they created a service that people loved and then they perfected it to create an even bigger customer base. They are the market leaders when it comes to online streaming services for movies and television shows.

Netflix not only carries hundreds of fantastic movies and television shows that satisfy viewers on a daily basis, but they have also come out with their own original shows that viewers can only watch on their service.

They provide the feature of remembering what you were watching and allowing you to pick up where you left off, while also creating recommendations based on what you have already viewed in the past.

Viewers can discover new movies on Netflix easier because Netflix actually makes an effort to know what its viewers like watching. They provide excellent viewer service by paying attention to the movies that their viewers enjoy and basing their recommendations off of them.

Netflix’s Business Disadvantages

Though Netflix has several business perks, things such as price can be one of their business disadvantages. It is now possible for people to stream movies online without ever paying anything.

If a viewer can see the same movie for free somewhere else than they will choose to do that, rather than paying to stream the movie. Of course, there is nothing that Netflix can do about this other than make sure their brand and movie quality is more desirable to viewers.

Hollywood, however, has also used Netflix to its advantage by raising movie prices which in turn decreases the profitability of Netflix. Even though Netflix creates its own series as well, those productions are also very costly.

Productions done by Netflix have to be just as high quality as the popular shows that are commonly seen on television, otherwise, no one will be willing to watch them. Productions like those though, cost a lot of revenue.

Startups

Marketing Your Startup: Helpful Strategies

There are tons of approaches various startup companies can go about their digital marketing strategies. Each year, specific marketing strategies become more effective while others become less effective. Be keen on the current strategies so as to get the most out of your financial budget.

Marketing is a vital aspect when it comes to business growth, especially if you are dealing with a new business and you are yet to break even. Your intelligence is put to the test once you start spending your marketing budget considering you do not have a lot to spend.

Every upcoming entrepreneur has to learn economical spending in instances like these. The following are a few strategies that will assist you on how to market your startup.

1. Couple Digital & Offline Marketing

Online marketing may have an upper hand when it comes to business, but never be unmindful of the success that offline marketing can bring to your company. You can benefit a lot by simply Distributing business cards and generating leads at regional networking gatherings.

Find yourself a good print supplier and you’ll have access to a range of marketing materials. Even something as simple as a business card can provide a physical reminder of who you are and what you do. Keith, owner of CRS Printers (Nottingham, UK) suggests also having a range of leaflets printed that can be sent to new customers to pass on to their contacts — providing a good way to growth hack your way to success.

Building your presence locally can be the most rewarding way to get a few of your first customers. While you’re at this, don’t put off your digital marketing strategies; find a way to equally incorporate the two so as to get the best of both worlds.

2. Engagement Should Be More Important Than Selling

‘Sell more, grow more’:This is what most aspiring entrepreneurs are taught right before they venture into the real thing. Making a great show of your products is not entirely wrong, but it also pays to make your company gain relevance by taking part in non-business discussions. Thank God for social media. This is the best platform you can use to engage your target audience without necessarily advertising.

Some companies leave positive comments on people’s posts while others share or retweet an individual’s achievement. Basically, show support to your audience and your audience will return the same. Scratch their back, and they’ll scratch yours.

3. Exposure is key

Be aware of places your target audience convenes on a regular basis, be it online or offline. Strategize how you can make your site known into their region. Your content is the best way to engage your audiences, so give them a lot to talk about.

If your company deals with children’s literature, your presence should be centered mostly around schools or parent-teacher functions. The idea is to give a clear outline on what you’re about, your mode of operation and most importantly, what your audience stands to gain by having a close association with you.

4. Put More Emphasis on Distinctiveness Rather Than Expenditure

There’s no point in having all the money in the world when your service is not solving problems in an efficient manner. Having a better product that effectively caters for your customers’ needs supersedes costly market spending that eventually becomes a burden on your part.

The key to effective market penetration is having a high quality product/service that literally sells itself and that offers a unique value proposition.

Don’t rush your company’s success. Take time to come up with a product that appeals to more than your target audience. You will notice that you will spend less once your product becomes of high standard as opposed to offering poor quality.

Once you incorporate these methods into your digital marketing, you’re not only assured of success, but also a satisfied lot of customers who will play a huge role in your business’s growth.