E-Commerce Website Analysis
Internet streaming is gainingpopularity in the current world since the contemporary technologyrequires the internet to view favorite TV shows (In Lugmayr & InDal, 2014). The streaming makes recording shows onto VHS or DVDirrelevant, and Netflix specializes in the art of streaming. Thecompany begun in 1997 by renting movie DVDs for a monthly flat ratefee to its customers by email since the phenomenon of corner shopsfor renting movies was fading away. By 2005, the company had at least4.2 million subscribers of email DVD supply. Netflix boasts 29.8million subscribers in the current market because of increased accessto the internet. The company successfully manages its supply chain toreduce costs and improve profitability unlike when using thetraditional SCM. Customer satisfaction also increases with theefficient SCM while the company can maximize its competitiveadvantage altogether (Roberts & Zahay, 2012). This paperdiscusses the strategic presence of Netflix and its supply chainmanagement in line with ecommerce.
According to Lieberman, (2013),the company accounts for 89% of the TV streams across the worldaccounting to 80% of the “streams for subscription videos ondemand.” Unlike the traditional brick and motor businessenvironments, the online platform offers the company a wider marketbase that can subscribe and use its services. The market base keepsincreasing with the increasing access to the internet, much as themarket would grow with expanding the stores in the traditional methodof supply to different parts of the world. However, massiveinvestment goes to the online platform to manage the database of theclients and their preferences as well as the company’s security(Elms et al., 2013).
In brief, an online presenceallows the company to offer a wide variety of options for customersacross the world. Subscribers from Australia can stream theirpreferred genre, which could be different from the preferred detailsin Norway, thus making Netflix effective in service delivery. It ispossible to satisfy all its clients by offering a wider variety ofservices. Netflix now enjoys a high number of satisfied customers,higher subscription rate, and profitability due to its effectivesupply chain management.
Elms, D. K., Low, P., World TradeOrganization., & Temasek Foundation. (2013). Globalvalue chains in a changing world.
In Lugmayr, A., & In Dal, Z.C. (2014). Mediaconvergence handbook: Volume 2,Berlin: Springer.
Roberts, L. M., & Zahay, D.(2012). Internetmarketing: integrating online and offline strategies, NewYork, NY: Cengage Learning.
No related posts.