Business Apa Paper On Mcdonalds After reading and studying Chapter 3 and the Netflix Case Study attached, do the following activity.
*** assignment is to research and describe these specific points in the industry your current organization belongs to,(write this paper as if you work for Mcdonalds) . Look at the industry your current company is in, then (1) define the five competitive forces in the industry, (2) find out what would be the driving changes in your industry , (3) Identify potential strategic groups in your industry, and (4) identify potential critical factors in your industry.
use attached as reference to what needs to be done for this paper 1
Entrepreneurial and Strategic Thinking
Course Name & Number
Netflix’s Business Model and Strategy in Renting Movies and TV Episodes Case Study
Netflix is the world’s most popular online television service. The firm has over 75 million streaming subscribers and is available in over 90 countries worldwide. Netflix’s online collection includes documentaries, original series, and features, allowing users to watch more than 125 million hours of movies and TV episodes every day. Netflix charges a monthly subscription fee in exchange for watching on-demand videos online. Netflix has launched a DVD rental service, which is a lucrative service that is fueling the growth of international and local streaming services. Its business approach is based on the value proposition and subscription model. Customers may take advantage of service accessibility, reasonable rates, and unique content thanks to the components.
Supplier power – strong – Since there are so few suppliers in this business, suppliers has a lot of bargaining leverage. Businesses must establish links and relationships with as many suppliers as possible in order to ensure that their network of television shows, movies, and internet streaming functions properly and that they have access to the best and most latest films and shows available.
Buyer’s power – Weak – Buyer power is limited in this industry. Since buyer power is a company that services a large number of people, a single transaction isn’t critical to the market. One transaction does not have a major impact on profitability in this industry.
Threat of Substitutes – Moderate – There are other options, such as live cable and YouTube television. These options allow people to watch live television without having to pay for a subscription to a streaming service. Other cost-effective options include purchasing a DVD movie or DVD television series and paying nothing more than the one-time purchase fee.
Threat of New Entry – moderate – In this industry, the danger of new entrants is minimal. The market is expected to develop and expand in terms of the number of competitors as internet streaming networks become more prevalent.
Competition with Rivals – Strong – There is stiff competition amongst rivals. Hulu, Netflix, HBO GO, and Amazon Video are all vying for market share and the greatest collection to entice users. Competition is a powerful force that propels the quickly changing market of this business, in which each service strives to outperform the others.
Forces Driving the Change
Rising globalization is a major driving force in this business. Globalization sets these subscriptions apart from their internet-based equivalents. The technology that distinguishes it from other choices is another aspect that encourages consumers to utilize it. They may have hundreds of different television series and movies in their library and make them available on demand to its users. People may utilize these services on any device that can access the web now that the internet is at their fingertips and their services are available through applications. The capacity to use the internet is a key factor in the sector. In terms of the industry’s competitiveness and future profitability, the results are favorable. The more popular these streaming services get, the more money they make. If they continue to improve technologically beyond what is now accessible, they will be able to achieve even more viewers and subscribers, making them even more profitable.
The strategic groups established are classified based on price and geographic location. HBO, and Go is highly priced while Hulu is low priced with moderate locations. Amazon Prime and Netflix are categorized at moderate price with international geographic location. Netflix is positioned at a convenient place. They have a larger global reach than their competitors, with Amazon Prime coming close, but at a cheap cost. This allows businesses to grow and profit by offering inexpensive rates in new areas where customers would be more interested than Amazon Prime Video.
Factors that will determine the Company’s success
Pricing Strategy – Viewers are budget conscious and do not want to pay an exorbitant fee for this service. It’s critical to have a strong pricing plan that allows you to give a cheap cost while still providing excellent value with the library’s selections.
Technology – It’s vital to provide services on a platform that the majority of organization’s target market can use. In this industry, having the capability to provide service to cellular devices, computers, televisions, gaming systems, and other devices is critical.
Convenience – In order for the subscriber to find the service helpful, it is important that the service’s functions perform effectively. Setting shows/movies on a list, saving where a viewer left off, sorting by genre, and other such kind features are essential for making the platform user-friendly.
Marketing – It’s important to promote these services and show why they’re better than the competition. Having a range of marketing tactics in place to maintain your current members is just as important. Offering a one-month free trial (or something similar) is a great way to let potential members to check out the library and see how simple the platform is to use.
Content – The most crucial critical success component is, without a doubt, content. It’s critical to get license from popular movies and television series in order to provide the material that consumers want. More subscriptions and profits result from having top-tier content.