Netflix Case: David becomes Goliath

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Presentation transcript:

Netflix Case: David becomes Goliath By John Gallaugher Case Study available at: http://gallaugher.com/chapters & http://flatworldknowledge.com/pub/gallaugher

Topics Covered NetFlix Startups vs. Established Firms Virtual vs. Physical Storefronts Long Tail Industries Resources for Competitive Advantage Value of Moving Early Short & Long Term Vulnerabilities

Key Resources for Comp. Adv. Brand Scale Distribution Centers Customers Selection Data / Switching Costs

Distribution Centers

Economies of Scale Subscribers: 14 million Subscribers: 2.2 million Vs. Cost to run the effort: $300 million Cost to run the effort: $300 million

Long Tail: businesses that can profitably offer a great volume of less popular products Source: Wired

Crowdsourcing: Outsourcing a task to a large, and undefined population in the form of an open call.

“underwhelming” Not Enough Content No Way to Get Content to the Television

Windowing: content is available to a given distribution channel for a specified period of time (window).

Many Models

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