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Strengths:
? Subscription-style e-commerce service- low monthly fees enables Netflix to compete with Blockbuster
? Established leader in the growing Home Entertainment Market and Internet
? Less overheard compared to video rental stores- no storefront means- less employees are hired.
? Established consumer base- that looks at Netflix as a mean of convenience.
? No Late Fees- No line ups
? Customers have unlimited access to the largest movie database, more of a selection compared to other video stores.
? Easy to navigate website. Customers can find their favorites in minutes.
? First-Move Advantage- they are the first online DVD store
Weaknesses:
- Not economical for consumers who watch less than one movie a week, although its inexpensive and convenient
- Customers cannot get the movies immediately have to wait until they arrive
- Inventory Control- movies might arrive late, or get lost during delivery which will result in loss of customers.
- Although DVDs are unlimited- customer is only allowed a certain out at a time.
- Slow process in shipping/receiving movies
Opportunities:
- Video Games, is also a huge industry Netflix could expand to.
- Partner up with Amazon.com as a cross promotion- customers could not only rent but also buy desired DVD's.
- As First-Move advantage Netflix can have rapid growth potential.
Threats:
-Brick and mortar stores have advantages over Netflix, customers can receive the movies they want immediately
-Netflix shares market with other online rental stores
- DVD could be replaced in the near future as technology advance, Ne ...