Netflix And Blockbuster Battle For Market Leadership Marketing Essay

Netflix And Blockbuster Battle For Market Leadership Marketing Essay Movie retail industry includes such companies that rent DVDs, Blu-ray discs and even video games which are usable on home-based electronic equipment (Espedido Julian, 2010). Many companies are participants in this lucrative business and they include such companies as Wal-Mart, Netflix, Blockbuster, Intelliflix, Redbox and GameZnFlix among others. Both Netflix and Blockbuster companies are presently the leaders in the rental movie industry and therefore the major rivals in the rental movie industry. As to Blockbuster, it has a quite lengthy convention in the business. The Blockbuster has existed since the year 1985, even as Netflix entered its 12th anniversary this year. This gives Blockbuster an edge of existence over its close competitor Netflix. This paper intends to critically provide an in depth analysis for Arthur Thompsons case study entitled Competition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership. It will comb thoroughly issues li ke the trends which affect either negatively or positively the movie rental industry with utmost reference to Netflix and Blockbuster in respect to their fight for the market headship, scrutinize in detail the competitive movie rental industry environment, and by extension give detailed discussion on the use of both the SWOT as well as reasonable scorecard to evaluate Netflixs battle strategy for market leadership on the whole. Dominant Business and Economic Characteristics of Movie Rental Industry: The video rental industry (formally known as home entertainment or leisure) is actually an economic segment duly involved with the development, marketing and sale of movie as well as other computer games. It includes such video games as consoles, game software, mobile games, handheld devices as well as online games. In recent years, the movie industry of has been experiencing exponential growth. The growth has been such that it is expected even to further leap-frog in the near and far future (Espedido Julian, 2010). According to Espedido Julian (2010), the industrys dominant economic features include 1) Market bulk and growth pace More than $35 billion was spent on video games consoles, game software etc. Industry is expected to have more than $51 billion sale by 2010. 2) Numbers of rivals The two main contenders are Netflix and Blockbuster. 3) The extent of competitive challenge Global presence with regional focus is required for companys competitive long term success. 4) Numbers of buyers around 250 to 300 million people globally did watch movies and nearly the same number did play video games in the year 2007. There is for instance, an estimated average age of those actively involved in the video games. The estimated age has actually jumped to 33 years in 2005, and about 25 percent of video gamers were in excess of age 50. 5) The extent of product discrimination The bigger the extent of differentiation, the further the competitive advantage. 6) Product innovation merchandise innovation plays noteworthy role in capturing the market share and to take competitive advantage in the market. And finally, pace of technological advancement Newly sophisticated technology advancement does plays a crucial role in entertainment industry particularly with due regard to movie rental industry. The emergence for instance of internet services have made it quite easier for Netflixs founder, Reed Hastings who did become aware of the demand for online renting of movies way back in the year 1997. Without hesitation, he began the vibrant online movie rental business indeed to a large scale. Netflix became successful, and it did not take long before he began to bring in the reimbursements of someone elses idea. Competition: In the movie rental industry, there has been an intense competition between two major business rivals; Netflix and Blockbuster. The competition in the movie rental industry has been so frighteningly fierce for the precedent few years that it has been termed by many opinion leaders as unhealthy business wise. Netflix and Blockbuster are actually the current leaders in the booming rental movie industry and by extension and to that effect the major rivals. The Blockbuster has been in the business for long, in fact, since 1985 on the other hand, Netflix only entered its 12th existence year this year. Actually the founder, Reed Hastings did establish Netflix in the year 1997. Nevertheless, at the moment, Netflix appears to lead the market in terms of market acquisition. Netflix which is largely viewed as a newcomer does have around 9.6 million online customers who have subscribed to their services. In comparison, Blockbuster has just slightly more than 3 million online subscribers despite its longer years of existence. In the United States of America, there are other online movie rental companies which include companies such as Intelliflix, Redbox and GameZnFlix. However, GameZnFlix and Redbox do not serve the locals most of the time. Instead they more often than not target Asian markets. Additionally, Wal-Mart also did attempt to spawn profits in the movie rental industry but sooner was outrun in the business by Netflix. These days Wal-Mart merely possesses an advertising contract with Netflix in the industry. Online Service General Idea: Both the Netflix and Blockbuster entire right of entry are online movie rental services. This implies that one can look through their records and place movies or even a favorite program in ones queue. A customer or a member is permitted to maintain a DVD so long as she/he so wants and there also exist no outstanding dates or even late charges. The operation is such that once a movie had been seen it is wrapped in an envelope and immediately sent back to either Netflix or Blockbuster. So responsive are the movie rental companies such that as soon as a movie sent back is received, the next movie to be sent in the stand in line will duly be sent to the customer or member. Indeed, Both Netflix and Blockbuster do have many different strategies from which to choose. The possible options are two-fold and they include limited rentals and unlimited rentals. In its infinite DVD rental option, Netflix does offer eight (8) strategies. The costs normally vary from about $10 for a movie at a parti cular time to around $50 for 8 movies. On the other hand, Blockbuster has four (4) different schemes which fall between $10 and $24. As regards limited rentals, Netflix normally offer two (2) DVDs per month for about $6 or four (4) DVDs for a period of one month for about $12.however, with reference to limited rentals, a Blockbuster member is able to get two (2) DVDs for the equivalent value as their market challengers or four (4) DVDs for about $8 only. Netflix has more continuous entertainment flow merits. Netflix utilizes technological advancement than no other company. For example if an individual is a member of Netflix, it is highly possible movies are watched from the individuals website at the same time as the person is waiting to obtain the subsequent movies from the list. This benefit is only to be had to Netflix customers. Nonetheless, Blockbuster also has certain incentives to their customers. It normally let a rental customer to turn back a watched movie physically. On f urther advancement to outdo each other, Netflix more often than not sends a new show within a day, whereas it takes Blockbuster around two to three days to deliver a new movie. Netflix is really sophisticated in this business. It does offer a wider assortment of movies as compared to its biggest competitors and even a rare expediency of watching shows online. Further still, they are also faster on matters shipping. With regard to technological use, Blockbuster only lets a member arrange and order movies online. Their movies are also largely obtainable in their stores. As a result, they lack online movie watching services. However, Blockbuster does give a rare chance to its customers to acquire as much as double shows given that their in store rental services is free with a Total Access Pass. The Forces Driving Movie Rental Industry: Several forces do propel the movie rental industry especially with regard to the performance of one of the market leaders, the Netflix, and they include such forces as i) Market Features-The industry was in actual market maturity stage previous to the application and utilization of the Internet technology as a medium of distribution. Netflix did capitalize and subsequently utilized the Internet sophistication to gain huge market share by offering customers and members with direct movie download accessibility and undeviating shipments to their home. Â   As earlier stated, Netflix was and for that matter still remain a market leader that realized the first potential of the market which did exist for Internet movie rentals. Â  According to Espedido Julian (2010) they did make the product less complex for the consumer to acquire by eliminating unnecessary hassle that existed before and in lieu provided accelerated delivery. ii) Profit Margins of the Industry- the gross profit of Netfli x did shoot up from $8 million in the year 2000 to around $419.6 million in the year 2007. Â  it was an indication that Netflix was proficient and capable of capitalizing on the existing market trends which affect the entire movie rental industry. Netflix market entrance was quite successful and this contributed to their fast growth and expansive market share acquisition. iii) Competition Intensity- when Netflix was entering movie retail industry, the industry then was operating as an oligopoly as Blockbuster did control a major market share. Â   Netflix was amazingly able to compete against the then well established Blockbuster by effectively and efficiently using the Internet technology and the policy of one day delivery distribution channels were its central competitive advantage over Blockbuster and other allied companies in the market that was largely oligopoly. iv) Variations in Demand-Movie demand appears to be somewhat consistent. Â   Nevertheless, more and more customers seem to be too conventional. They are reminiscent of the idea of requesting for the DVDs off the Internet. v) Capital and Technological Requirements- A huge amount of initial capital is duly required to start the business of movie rentals and in turn obtain any momentous share of the market since fees that must be paid is quite exorbitant. Compare Netflix and Blockbusters competitive strategies: Both Netflix and Blockbuster have employed diverse strategies, plans and schemes to gain more market share as well as revenues as they can. They have before engaged in business tussles. Both the companies have actually been involved in price battle, each lowering its operation cost compared to the cost charged by their rival (Thompson, et al. 2010). This strategy however, popular with many competing companies does work advantageously to consumers since the consumers get the same kind of services for a smaller amount of money they pay. The CEO of Netflix, Reed Hastings strategies is to reach about 20 million customers by the year 2012. Netflix therefore puts a great deal of anxiety on Blockbuster compelling them to change something in their strategy and future plans. In fact, up till about two years ago, Blockbuster was charging for their services late fees for failure to return on time DVDs back (Thompson, et al. 2010). The company henceforth changed their strategy and no longer char ge late fees any more. Netflix has very aggressive strategies. They have been purchasing privileges to autonomous films. This plan will permit Netflix to rent or even sell DVDs or movies in the theatres. In so doing, Netflix gambles and attempts to make more cash on movies which Hollywood never considers. It duly works in their favor since only 30 percent of Netflixs rentals are new releases (Thompson, et al. 2010). Advantages/Disadvantages of Two Rivals Advantages of Netflix: Netflix provides more advantages to its customers. According to Roth, Daniel (2009) their customers do watch more than 7000 movies online as a member. Their website also makes recommendations based on your previous ratings. Further, their website keeps track of movies rented. Moreover, they have a large selection of special interest DVDs. Finally, they avail to their customers a 2 week free trial. Disadvantages of Netflix: Netflix have numerous merits. However, they also have few demerits. For instance, they show poor customer service. Their services subject customers into a long wait for new releases. Advantages of Blockbuster Total Access: Blockbuster as a market rival to Netflix has merits too. They offer 2 free video/game in store monthly rentals to their members. Their members also enjoy privilege to return online order to any local Blockbuster store and this is very convenient to customers (Roth, Daniel, 2009). In addition, their customers pay a paltry $9.99 for the first month of subscription. Disadvantages of Blockbuster Total Access: Nevertheless, Blockbuster also has disadvantages. For that case, their customers are barred from returning rented Movies by mail. Finally, their consumers are conditioned to have 2 separate accounts in order to rent in store and online (Blockbuster, 2008). A Complete SWOT for Netflix: The founders of Netflix were Reed Hastings and Marc Randolph. This was way back in the year 1997. They both viewed the business as a blend of customary video store as well as a subscription or payment cable TV services. Since April 1998, Netflix has been offering DVD owners an expedient as well as a cost effectual alternative to rent movies. Netflix has been operating as an internet based rental movie subscription services provider particularly for formatted movies of digital video disc (DVD). Its website provided its members to not only surf its catalogue of shows without difficulties, but also offered clips of movies which customers could afford to rent. Its prime mission is to offer versatile services which can help its members pick and obtain rental movies with an absolute gratification. Netflixs founders were very intelligent. They were able to foresee the positive potential of technological trend of the digital video disc player market jointly with the fast growth of internet access. Netflix as a result placed itself immediately in the internet DVD rental business. Their main focus was on those Americans who love movies, can access the internet, owns a DVD player or possess PCs or have DVD-ROM. Unsatisfied customers with the rule of the game of the other local movie rental companies preferred the online stores which was offered principally by Netflix. The online stores did cover scores of demographics. Summary From the point of view of the user, there is bound to occur varied preferences towards one service. It mostly relies on individual needs of a service member. For instance, versed with technological advancement will more likely favor Netflix, whilst a family living at home and is close to a Blockbuster store would prefer its services. Relying on the observation above, it is adequate to say that Netflix is more than able to be steps ahead of Blockbuster because they do not incur overbearing overhead cost of possessing its stores as well as storing all DVDs.

One of the Freedom Fighters; Dr. Martin Luther King, Jr. Essay

Martin Luther King, Jr. was born on January 15, 1929. He was an American clergyman, activist, and prominent leader in the African-American Civil Rights Movement. He is best known for his role in the advancement of civil rights using nonviolent civil disobedience. A Baptist minister, King became a civil rights activist early in his career. He led the 1955 Montgomery Bus Boycott and helped found the Southern Christian Leadership Conference (SCLC) in 1957, serving as its first president. King’s efforts led to the 1963 March on Washington, where King delivered his â€Å"I Have a Dream† speech. On October 14 1964, King received the Nobel Peace Prize for combating racial inequality through nonviolence. In the next few years leading up to his death, he expanded his focus to include poverty and the Vietnam War. King was assassinated on April 4, 1968, in Memphis, Tennessee. He was awarded the Presidential Medal of Freedom in 1977 and Congressional Gold Medal in 2004; Martin Luther King, Jr. Day was established as a U.S. federal holiday in 1986. Hundreds of streets in the U.S. and beyond have been renamed in his honor. Here’s an excerpt from his famous speech â€Å"I have a dream†: I have a dream that one day this nation will rise up and live out the true meaning of its creed: â€Å"We hold these truths to be self-evident, that all men are created equal.† I have a dream that one day on the red hills of Georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character. I have a dream today! I have a dream that one day, down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of â€Å"interposition† and â€Å"nullification† — one day right there in Alabama little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers. I have a dream today! I have a dream that one day every valley shall be exalted, and every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight; â€Å"and the glory of the Lord shall be revealed and all flesh shall see it together.†

The Development Of The Communist Manifesto In The European

The development of the communist manifesto in the European region has led to the influencing of the different structures present in the area. The communist manifesto has resulted in the formation of holy alliances in the European region. It is due to the effects of the Manifesto that Marx developed the journal to address the issue. The importance of this journal is to highlight the sociological problems that have resulted from the manifesto. The fact that the manifesto has been highlighted by the European powers to be a force that influences the activities conducted in the region. This paper thus seeks to highlight important aspects that will be incorporated in the analysis of the communist manifesto developed by Marx and its significance†¦show more content†¦Through bourgeoisie, which incorporated the serfs and the middle ages, there were developed cities in the ancient times that have developed to be the modern day cities. It is from the effects of communism that America w as discovered and the rounding of the Cape (Marx, Fredrick, 4). This in return provided an opportunity for the growth and development of the bourgeoisie. In line with the journal, the communist manifesto also brought about the development of the markets in the far Asian regions of China. This accelerated industrialization in the region due to the need to increase production of finished goods for the general population. As a result of the population pressure witnessed in the European region, industrial developments were monopolized and thus their production was insufficient to cater for the ever-growing population pressure in the European region. It was due to this that there was the need to revolutionize machinery to cater for the production. This led to the improvements if the type of engines from steam engines to modern systems of machinery that would produce sufficient goods for the public. 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Marine Herbivores

An herbivore is an organism that feeds on plants. These organisms are referred to with the adjective herbivorous. The word herbivore comes from the Latin word herba (a plant) and vorare (devour, swallow), meaning plant-eating. An example of a marine herbivore is the manatee. The opposite of an herbivore is a carnivore or meat-eater. Organisms that eat herbivores, carnivores, and plants are referred to as omnivorous. Size Matters Many marine herbivores are small because only a few organisms are adapted to eat phytoplankton, which provides the bulk of the plants in the ocean. Terrestrial herbivores tend to be larger since most terrestrial plants are large and can sustain a large herbivore. Two exceptions are manatees and dugongs, large marine mammals who survive primarily on aquatic plants. These animals live in relatively shallow areas, where light is not limited, and plants can grow larger.   Advantages and Disadvantages of Being an Herbivore Plants such as phytoplankton are relatively abundant in ocean areas with access to sunlight, such as in shallow waters, at the surface of the open ocean, and along the coast. An advantage of being an herbivore is that food is pretty easy to find and eat. Once it is found, it cant escape like a live animal might. One of the disadvantages of being an herbivore is that plants are often more difficult to digest than animals. More plants may be needed to provide adequate energy for the herbivore.   Examples of Marine Herbivores Many marine animals are omnivores or carnivores. But there are some marine herbivores that are well-known. Examples of marine herbivores in various animal groups are listed below. Herbivorous Marine Reptiles: Green sea turtle (who are named for their green fat, which is green because of their plant-based diet)Marine iguanas Herbivorous Marine Mammals: ManateesDugongs Herbivorous Fish Many tropical reef fish are herbivores. Examples include:   ParrotfishAngelfishTangsBlennies These coral reef herbivores are important to maintaining a healthy balance in a reef ecosystem. Algae can dominate and smother a reef if herbivorous fish arent present to help balance things out by grazing on the algae.  Fish can break down the algae using a gizzard-like stomach, chemicals in their stomach, and intestinal microbes. Herbivorous Invertebrates Some gastropods, including as limpets, periwinkles  (e.g., the common periwinkle), and queen conchs. Herbivorous Plankton Some zooplankton species Herbivores and Trophic Levels Trophic levels are the levels at which animals feed. Within these levels, there are producers (autotrophs) and consumers (heterotrophs).  Autotrophs make their own food, while heterotrophs eat autotrophs or other heterotrophs. In a food chain or food pyramid, the first trophic level belongs to the autotrophs. Examples of autotrophs in the marine environment are marine algae and seagrasses. These organisms make their own food during photosynthesis, which uses energy from the sunlight. Herbivores are found at the second level. These are heterotrophs because they eat the producers. After herbivores, carnivores and omnivores are at the next trophic level, since carnivores eat herbivores, and omnivores eat both herbivores and producers. Sources â€Å"Herbivory in Fish.†Ã‚  Herbivory in Fish | Department of Microbiology, https://micro.cornell.edu/research/epulopiscium/herbivory-fish/.Map of Life - Convergent Evolution Online, http://www.mapoflife.org/topics/topic_206_Gut-fermentation-in-herbivorous-animals/.Morrissey, J.F. and J.L. Sumich. Introduction to the Biology of Marine Life. Jones Bartlett Learning, 2012.