To : Sabine Turnley
From: Vincent Xu
Re? Case Analysis? argument in the Movie Rental Industry in 2008: Netflix and smash hit Battle for Market Leadership
Executive Summary
The movie rental is the near popular way to watch movies outside a dramaturgy in the U.S. As the improvement of technology, this industry has been increasing in foodstuff position of the whole movie industry and bargon-ass the sales of movie DVD. In this Memo, I will prime(prenominal) give a overall analysis of the entire industry, identifying the forthcoming trends, specifically addressing the competitive factors, the driving forces, and the key success factors of this industry. later that, the analysis will go to the two main competitors in this industry, Netflix and Blockbuster, about their strength and weakness, future opportunities and threats, and their current financial performances.
Finally, I will give some advice to recommendation to both companies base on the conclusion of the analysis.
Analysis
The competitive forces of this industry, which mainly come from rivalries and suppliers, are relatively strong, and thus make this industry highly competitive. First, because of the late economic crisis, the total amount of the maket demand is growing slowly.
It change surface experienced a slight shrinking during 2006-2007. Second, the services of which each competitor can provide(rent movies both pysically and digitally) are standardized to a large degree, while none of the competitor could use a exclusive competitive weapon to gain significant advantages. At the same time the leader of the industry, Blockbuster, has recently replaced its CEO and maneuver a lot of aggressive movement to maintain their market position and rejuvenate profit. These factors make the competitive force from controversy extremely strong.
Besides rivalry forces, the forces come from suppliers are similarly very strong. Since the movies are made by the movie studios, it is unaccepted for companies within this...If you want to get a full essay, outrank it on our website: Orderessay
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