2

The History of Netflix

Netflix was formed in California in 1997 by Reed Hastings and Marc Randolph.

In 2002,IPO at a
1998 as the first selling price of one
DVD rental site. dollar per share

In 2007, Netflix
193 million introduced its
subscribers streaming service.
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Netflix Analysis

Netflix
Netflix Netflix
Consumer
Creativity Technology
Demands
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Netflix PESTEL Analysis

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Netflix Porter’s Five Forces Analysis

Bargaining Power Substitute

of Consumers Products and
Services

Bargaining
Power of
Suppliers Entry of New
Internal Competitors
Rivalry
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Netflix’s Business Model

Cutting Out
Platform The Unlimited
Business Middleman Subscription
Models Business Business Model
Model
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Netflix Business Model

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Netflix VRIO Analysis

Netflix Inc. VRIO & VRIN Analysis & Table (Resource-Based View)
ORGANIZATIONAL RESOURCES & CAPABILITIES V R I O N
Competitive Disadvantage:
High dependence on third-party entertainment content producers
Competitive Parity or Equality:
Innovativeness ✔
Information technology assets ✔
Temporary Competitive Advantage:
Support and licenses from entertainment content creators and copyright holders ✔ ✔
Unexploited Competitive Advantages:
High potential for online music distribution ✔ ✔ ✔
High potential for online textual content distribution ✔ ✔ ✔
VRIN/VRIO core competencies (Long-Term/Sustained Competitive Advantages):
High equity of the Netflix brand ✔ ✔ ✔ ✔ ✔
Large platform of content producers and consumers ✔ ✔ ✔ ✔ ✔
High capacity for original content creation ✔ ✔ ✔ ✔ ✔
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Netflix value chain and supply chain

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