Netflix competitive analysis Essay -- essays research papers

Competitive AnalysisBlockbuster Inc. and Movie Gallery are currently the two strongest competitors in the market, and therefore pose the biggest threats to Netflix. Amazon, Intelliflicks, and Cleanfilms are all stage in the market, but dont possess enough force at this time to be considered a threat to Netflix.BlockbusterAs of remunerate now, Blockbuster is the biggest warring threat to Netflix. Blockbuster was incorporated in 1989 in Delaware and is a major renter of home videocassettes, DVDs and video games throughout the Americas, as healthful as Europe, Asia and Australia. Blockbuster operated about 9,100 stores in the U.S. and 24 other countries, as of Dec. 2004. In the summer of 2004, Blockbuster launched an online rental program that supplys a challenging competitive match for Netflix. Blockbusters online debut was in development for years. In 2002 Blockbuster purchased FilmCaddy, an online movie rental company that became Blockbusters internet channel. Blockbuster compl eted consumer research, two qualitative and quantitative, and found that online customers preferred a program that would give them both Internet convenience and in-store benefits. Blockbuster decided to incorporate its extensive network of stores to provide a powerful competitive edge. In addition, the chain has said it will invest $170 million this year alone in its online-rental operation. Financially, Blockbuster has revenues of 6.10 billion, with a gross profit of 3.61 billion, and a negative ne...