Question

What is Netflix positioning strategy and how do they execute it?

Answer 1

The competitors of Netflix are Comcast Xfinity, Amazon Prime, Redbox Instant, Hulu Plus, and Crackle. All these companies provide a common service and that is streaming of movies and TV shows in different formats and they also work on different devices. The comparison and the strategy are mainly based on the variety of the content, devices supported and the pricing. This is where Netflix score well ahead of other competitors in the market. The problem with crackle is that they have very limited content for the users to choose from and Comcast Xfinity comes with a bundling plan. They offer the streaming service with the cable and internet service so they cannot attract customers who are looking only for the streaming service. The problem with Amazon Prime is that they offer a wide range of good content and on different platforms, but the majority of content must be either rented or purchased. They do not have the subscription model in place and Netflix scores big here with their subscription model. Hulu is a very popular service and they have better content than Netflix. But still their popularity is diminishing because of the Ads on the platform and most of the popular shows are available only on the computers. But Netflix Netflix can easily beat the competition because of the content available in DVD or Blu-ray formats. Their content can be streamed on nearly all smartphones, tablets, computers, TVs, and Internet-connected home theater devices.

They execute this strategy by producing quality content to a wider audience and provide it at a low cost. They are not targeting just the customers in the United States but in 90 different countries. They have already acquired a good market share and they are just trying to maintain that by providing original content to the viewers. They have a very competitive pricing and they have customized it for the international markets.