Consumers looking for entertainment have many options. Each content provider has business strengths and weaknesses. For example,

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Consumers looking for entertainment have many options. Each content provider has business strengths and weaknesses. For example, Netflix has a recommendation engine and a relatively vast library for streaming. Hulu can be freely accessed because of advertising sponsorship, but has limited selections, movies in particular, and in availability durations. Cable services" 'on demand" features are not free, but some customers like the convenience of one-stop shop for cable and phone, etc., and selections are limited (in numbers and duration). Redbox has altogether different model, with vending for DVDs located in popular places (e.g., near McDonald's, in airports), interchangeable pick-ups and returns locations, and of course limited selections.


Case Discussion Questions
1 . How would you advise any of these companies with regard to their strategy, positioning, and tactical execution? Take one (Netflix, Hulu, cable, or Redbox), and draw a scenario in which strengths might be retained, weaknesses strengthened or eliminated, and future directions pursued to make the business model more solid, more profitable, and less prone to competitive matching or attack.
2. Could a Blockbuster type of shop re-enter this arena; i.e., a storefront where consumers go to pick up and drop off DVDs, or is that customer model now defunct? If you could imagine it, what would you recommend they do? If not, imagine you were to design an entertainment provider from scratch (movies and video games, mostly), what would it look like-STP and 4Ps? What elements in the SCs are likely to be most relevant to address in the near future?
3. If these companies start looking even more similar and commodity-like in the next 3-5 years, how would you advise one of them to break out of the pack and distinguish itself by offering . . . what?
4. How can any of these providers take greater advantage of a CRM philosophy? Most of them have little by way of retention programs, e.g., customers can cancel or rejoin anytime. Are there any benefits for staying?

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