Conclusion

Conclusion

Netflix is the most positive online movie-by-mail rental in the United States, created by and Reed Hastings in 1997.  Just two years after creating the company, they launched the company’s subscription service.  But within the first four years, Netflix popularity grew to one million subscribers and by the end of 2008 Netflix had 12 million subscribers.

The main business strategy that is used by Netflix is overall cost, offering their goods and services at a price lower than what any of their competitors could offer at that time. At first they reached the goal of offering goods and services not only at the lowest cost possible but with the most efficiency.

Netflix as a company must try keep up with technological advances, that is why some of their new inventions is allowing some of their customers to download movies directly at home, getting rid of waiting time. Netflix has taking a giant step forward by creating a database which takes your previous rentals and recommend rentals that fit your favourites. The threat of new entrants is very small but many companies have tried to enter the market, but Netflix entry barriers are very large which makes it harder for other companies to compete with Netflix. Many companies that have competed have been unsuccessful.

Netflix is an e-commerce company letting the customers and the company to gain a powerful relationship by selling their products, goods and services through the internet, allowing the customers to have a rental service from home.

Netflix offers different types if software to stream their services directly at home, like the PS3, Xbox 360, Smart TV,PC,s and many more. Netflix will continue to remain at the top of their market share as long as they hold the competitive advantage over the other companies that try set up against them.