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Netflix Case: David becomes Goliath
By John Gallaugher Case Study available at: &
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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
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Key Resources for Comp. Adv. Brand Scale
Distribution Centers Customers Selection Data / Switching Costs
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Distribution Centers
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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
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Long Tail: businesses that can profitably offer a great volume of less popular products Source: Wired
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Crowdsourcing: Outsourcing a task to a large, and undefined population in the form of an open call.
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“underwhelming” Not Enough Content
No Way to Get Content to the Television
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Windowing: content is available to a given distribution channel for a specified period of time (window).
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Many Models
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