Essentials of Strategic Management Research Paper

Essentials of Strategic Management - Research Paper Example They offer an online service of renting movies whereby one has to subscribe. There are subscription fees that are usually paid on a monthly basis. Most of the industries that embrace technology, more so electronics, are known to be very competitive. This is the same case with rental industries where Netflix is facing stiff competition from some other organizations like Blockbuster who are offering almost the same services. Netflix has to lay down critical strategies that will help it to retain its position in the movie industry. There is a need to have a fertile basis of technology to ensure that they are able to cope up with technology that is changing at the speed of lightning (Barringer, 2010). Thesis Statement Rental industry is one of the risky businesses to venture into because of some reasons. The main reason is that it deals with the technological skills that you employ and how. An organization may make any cash from this trading while another one may incur high losses at the same time. This paper will look at some essential ways and methods that can be employed in this business. It will be based on a sample case study of Netflix, which is one of the successful tradings in the industries. As managers of other organizations in the industry, what would be important to consider being successful? Improvements do not come up abruptly thus there is a procedure that must be followed to the latter to get to that better place. This is only through proper planning and proper research. All the companies in this strategy have their own marketing structure that ought to be structured in accordance with changes in the market and technology. All this will be analyzed in depth with regard to Netflix (Olsen, 2011). Netflix Current Situation As compared to other companies in this industry, Netflix has the highest number of subscribers. The sales that are done on a daily basis are high however at times they have been observed to be low. The market structure is therefore n ot constant. In 2002, a case study carried out showed that there were around 190,000 discs sold per day to the 670, 000 subscribers. This number of subscribers grew from that number to around 8.4 million at the end of 2008. Currently, the number of customers is estimated to be 23 million. The company is the highest selling in America covering over 75% of the continent. The company has not yet ventured to other business places apart from America however it has some plans that are still cooking to venture into United Kingdom (Olsen, 2011). The subscription fee in this industry, usually on a monthly basis has been changing but the range is between $4.99 and $17.99. The main reason that this has been changing is the fluctuations of the subscription fee in other rental companies more so Blockbuster who has been working hard to ensure that their subscription fee is below that of Netflix. To fight the changing monthly subscription fees, the company set a one percent deduction fee on the to tal based on the overall annual fee. There are also Netflix plans in place for people to rent many DVDs will get a reduction in the total. This company is offering rental services online; people can also watch movies online, together with TV shows. Online streaming is aimed at getting users who rely on other electronics apart from computers, for instance, iPod users, and smartphones users.