The Technology of Netflix Research Paper Example | Topics and Well Written Essays - 750 words

The Technology of Netflix - Research Paper ExampleThere are not many another(prenominal) companies properly involved in the online renting of movies. Moreover, Netflix plays by keeping its cost low as it tries to win customers to frequently use its services instead of getting movies from stores or going to cinemas.Analysts believe that Netflix is now set about a tough competition in the face of other companies such as Amazon and Apple, which mother also started to provide online movie services at an affordable rate. Furthermore, the cost differentiation scheme utilize by Netflix has been pretty successful is retaining frequent watchers who use the service frequently. Alongside, the companys differentiation strategy has allowed it to get accessed by customers who avoid going to stores and want to watch movies from the comfort of their homes.Porters cinque Forces model was discovered in 1979 by Mr. Michael E. Porter of Harvard Business School. This model is used to give louver factors that can be used to determine the stage of rivalry within a business enterprise. This would subsequently be used to determine the attractiveness of a market. Market attractiveness can be understood in terms of the overall profit levels achieved by an industry.To start off, Porters Five Forces model consists of the undermentioned five forces, namely threat of new entrants, bargaining power of suppliers, bargaining power of customers, the threat of substitutes and competitory rivalry in an industry. The application of each of these factors to Netflix will now be done to show how this business model works.The easier it is for new corporations to come into in the same business line as Netflix, the tougher would the competitive surroundings be. For any competitor to start up an online movie rental company, it would require enormous sums of money. Considering the amount of investments that would compulsion to be made in setting contracts