The Business Model Of Netflix:
Is It For Your Company?
The evolution of Netflix is a great example of why retail companies that are slow to restructure their operations to keep pace with the online world, will easily and rapidly lose their category dominance and market share Netflix is simply an online movie-rental service that enables users to order movies online and delivers those videos to users the next day via regular mail. It’s a simple business model that focuses on selection, convenience and speed -- factors important to enough people that it put a severe dent in the business of existing movie-rental chains throughout the country.
The next step for Netflix in its evolution occurred just recently. The company now offers instant access to movies delivering them immediately to your computer. As online purchases are becoming more “mainstream” is there a way to restructure or even rethink your company to offer your product online to those customers who want it faster and want to avoid visiting a store and all of the encumbrances that go along with it?
