Case study Netflix Example | Topics and Well Written Essays - 500 words

Netflix - Case Study Example So the buyers force is rather neutral for Netflix. As Netflix provides home entertainment solution, the number of substitutes available to the customers is very large, starting from alternative sources of movie rentals and ending reading books or playing games instead. So the substitutes force is rather negative for Netflix. The threat of new entrants is quite strong since, with the development of new technologies, more and more companies are moving online. In addition, the Netlix’ industry is not too expensive to enter. Furthermore, the competition is already rather strong. So, in general the five-forces analysis leads to the conclusion that the competiti8ve forces confronting Netflix in the DVD rental marketplace are, in most cases, strong. 2. How is the online movie rental business changing? What are the underlying forces that are driving industry change and are their impacts favorable or unfavorable in term of their impact on competitive intensity and future industry profi tability? The online movie rental business changing due to the appearance of new technologies that allow for different ways of movie distribution. Technological advancements, therefore, are the underlying forces that are driving industry change – more and more people have access to the Internet, and more companies use new technologies to distribute their goods or services.