Question

Define Netflix's competitive advantage.Why is Netflix so successful?

Answer 1

Netflix has built an unmatched brand name that its competitors find it hard to achieve. This has established it as a market leader in the movie industry in particular. Its strong competitors such as Prime (Amazon) do not have this advantage in the market. It, therefore, implies that there is a general preference for the TV shows to be aired in Netflix as opposed to other platforms. Netflix also develops its own original content apart from streaming the contents of the third parties. It also offers a large selection of choices in a subscription-based model. Netflix’s identity has been its major scale-out because of its brand image because of which it is leading in its market. Through this, it has used its huge budget to provide services in line with the consumer’s changes tastes, and preferences. Other advantages that Netflix has over others include Convenience of delivery, instant streaming, and no late or return fees for rentals and streaming.

The success of Netflix has been first of all on the subscriber interactive experience that has been developed by the company has been the reason why numbers have been rising translating into profits. Secondly, Netflix has invested heavily in appealing content in terms of shows that have received positive reviews. For instance, Orange is the New Black and House of Cards. This eventually increased its popularity scale as well