COMMENT on a minimum three (3) other student's posts that selected the
same company that you did, and state if you agree or disagree with their
Analysis and explain why.
COMMENT on at least one post of a student who chose a different company
and comments on similarities with your Analysis and differences.
FINAL POST: complete the last Post to identify what you may have learned
from the other students that might improve or change your initial Analysis and
how.
1st comment
Justin Williams
Week 13 Discussion - Netflix
COLLAPSE
1. When compared to their competitors, like Disney Plus, Hulu, and Prime Video, Netflix strives to
create new and original content to drive their business model. Netflix is always creating and
releasing a steady stream of new and original content for its customers to watch. This new content
sits on top of its existing library of content. The new content is slowly released over time to keep
customers paying from month to month so they can watch new shows the moment they
premier. Also, Netlfix's content recommendation systems make it really easy for customers to find
new things to watch. They have easy viewable title cards for every show, which include a percentage
rating for whether or not they think you will like the show, a summary and a short video preview that
describes the show.
2. Netflix has a vast amount of resources and that allows them to be adaptive and push out new
features. Netflix was the pioneer in the television and movie streaming markets. Even though
competitors are now entering the market, being first was very profitable for them and they
reinvested their profits back into their service as they continously are becoming more independent
from traditional production companies, by producing their own content.
3. Netflix competes by offering the superior products and design. Their original content, and vast
library of their existing content is what drives customers to purchase their service.
4. Probably the best measure of Netflix's success is consistent monthly users. Statista.com says that in
Q1 of 2019, 60.23 million subscribers, Q2 had 60.1 million, Q3 had 60.62 million, and Q4 had 61.04
million users. So not only is Netflix consistently holding its subscriber numbers steady, it's also
experiencing steady growth too
2nd Blake Carnahan
Final Post: Netflix
COLLAPSE
From the other students, I learned that Netflix has an hour/minute metric that could be analyzed to
see how many people watch which show for how long. This is a great measure of success for Netflix,
and I would go back and include this in my original analysis. I also learned that even though, Netflix is
no longer the low-cost provider, they are still incredibly cheap compared to most broadcast TV plans.
They just aren’t as cheap as some of their direct competitors, but they make up for it with great
original and licensed content. Overall, with Netflix being the first company of its kind and with its
popular content, no wonder they are the leader in the industry.
3. Deanna Rigdon
Netflix
COLLAPSE
The main reason Netflix has a competitive advantage in their industry is because they
essentially created their industry. When the company was first founded, they started as an online dvd
rental site. Blockbuster and Hollywood Video, the two major dvd rental retailers at the time, had no
interest in going digital. They saw it as a threat to their brick and mortar stores. But the Netflix
founders saw it as an opportunity. Online dvd rentals are more convenient and they can have a much
larger inventory than brick and mortar stores. Their large inventory was one of their greatest
resources that helped them establish their market share. Later, Netflix also pioneered the video
streaming platform. They saw streaming not as a threat to their dvd rentals, but as an unfilled market
niche that they could take advantage of.
Netflix was able to find opportunities that no one else wants to take advantage of, then they innovate
and deliver the services that their customers want. Their ability to find opportunities and take
advantage of them is one thing that puts them ahead of their competition. They have been able to
maintain their market share by innovating and predicting the wants and needs of their customers.
They began as the low-cost provider, but now they compete as the quality-provider. Amazon prime
offers a student discount that makes them cheaper than Netflix, and Hulu is free if you have Spotify
Premium. Netflix is the name brand when it comes to video streaming platforms. The saying is
“Netflix and Chill,” not “Hulu and Chill.” The main measure of success for a subscription service like
Netflix is the number of subscribers. Netflix has 167 million, Amazon Prime has 100 million, Hulu has
30.4 million, and Disney+ has 28.6 million subscribers.
4th
Sarah Sodoma
Initial Post-Zara
COLLAPSE
Zara is a very interesting company that I had not heard of before this assignment. They do a few
things better than their competitors. First, they have a very strong supply chain compared to it's
competitors. This allows them to get products to their markets much faster. In fact, it is said that they
can get new products to all of their locations within 15 days. In addition, they have over 1800
suppliers which allows them to control their costs more as well. Many of their competitors do not
have the luxury of having quite as many suppliers as they do. Next, they have a better overall
business model than most of their competitors. They use what is called a 'fast fashion model'. This
allows Zara to have new products in their stores every week and the products that customers saw in
the stores during the previous week is likely no longer available. This creates a sense of urgency for
customers to buy more and to enter their stores more frequently to browse their new offerings. They
have many resources and capabilities that can be used to achieve their competitive advantage. One
resource that they have is AI. They use their AI in order to improve the efficiency of the supply chain
and they make their network larger as well. Also, their IT tools help them to gather information
quicker so that they can use it efficiently to create new products and bring them to the market in a
timely manner. They get a lot of benefit from their RFID technology. This technology tracks the
location of items in their stores and it takes inventory for them, so the employees know what they
have and where it is. This helps with their customer service. Zara's basis of competition is offering
high quality, high fashion products but at a more affordable price than most offer. I decided this
because their products are designed to keep up with today's trends in the fashion world. They pride
themselves on being able to create products that align with what's going on in the world at the
moment and being able to get these products to the consumers as demand is changing. In addition, it
is said that they have high quality products for the prices that they offer. Their products are priced
higher than companies such as Old Navy and Forever 21, some of their competitors, but they offer
products with higher quality and that are more fashion forward. Some measures that show the great
success that Zara has had are it's rapidly increasing sales, rapidly increasing profits, and it's growing
globalization. In the last quarter of 2019, their sales grew 6%, their profits were $1.3 billion (14%
higher than the previous year), and they have expanded their company to offer products in several
new countries around the globe as well as improving their online presence.
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