Netflix is a famous entertainment company founded in Scotts Valley, California USA in 1997. It has since then excelled in providing online entertainment to millions of people around the world. It is till date the leading entertainment service online with around 109 million members in more than 190 countries. Their portfolio includes TV shows, movies, documentaries, and feature films. One of the very important features that distinguish it from other entertainment providers is that it helps the viewers stream without any advertisements interrupting. It’s very interesting to know that Netflix has been able to increase its revenues each year despite not earning through advertisements or endorsements.
A very important feature of Netflix that counts as its competitive advantage in the market is that it was the pioneer in the online entertainment industry. It emerged as a phenomenon and all the other competitors then tried to reach its level by competing in the same market. Now in this era, the online entertainment is very much credited now and despite too many competitors entering the market, Netflix remains the leader over all these years.
Although many other companies have been able to come up with a similar business model, they have failed to achieve the level of achievement that Netflix has. The most anticipated TV shows and movies are available on Netflix. Netflix has been able to develop partnerships with these shows so that their viewers are able to access these shows first on Netflix. Moreover, Netflix also produces its own shows and these shows are only exclusively available on Netflix. All these strategies make them different from their competitors and help them increase their revenues and market share each year. This is one of their biggest competitive advantages in terms of differentiation of services by providing valuable exclusive experience to their customers.
Another factor that contributes to its competitive advantage is their reach over so many different countries. The reach and distribution of Netflix is vast than other competitors. Due to this advantage, they are able to increase their customer base all over the world. They have been investing in their expansion due to which their reach increases each year, along with their revenues, profits and market share. Netflix have also been successful in providing these services at very reasonable prices, which makes them accessible to a large number of customers around the world.
Since its establishment, Netflix has been able to maintain their brand name and sell that brand name throughout the world. When a brand names becomes a phenomenon in the social circle of most of millennials, which is enough evidence to prove the fact that the brand has become a part of people’s lives and has become more than just a brand name. Maintaining this brand image is one their biggest competitive advantage.
References
About Netflix. Retrieved December 22, 2017, from https://media.netflix.com/en/about-netflix
Campo, C. (2017, October 13). Netflix versus the competition: How to choose a streaming service. Retrieved December 22, 2017, from https://www.cnbc.com/2017/10/06/which-ott-streaming-service-is-best.html
Trainer, D. (2016, July 21). Netflix Suffering From Diminishing Competitive Advantage. Retrieved December 22, 2017, from https://www.forbes.com/sites/greatspeculations/2016/07/21/netflix-suffering-from-diminishing-competitive-advantage/#5c1e4252227a