Consolidated Paper: Netflix

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Despite the fact that there are several other video streaming services which offer services similar to those of Netflix, it is still reasonable to conclude that Netflix services can be considered non-substitutable. Although sites such as Hulu, Crackle, and Amazon Prime all offer video streaming services, none of them offer both video streaming and home DVD delivery services. This is what truly allows Netflix to stand out. The same can be said about their original TV shows, which you cannot find on Amazon Prime or Crackle.

In order to offer select movies and TV shows on Netflix, the company must first partner with various content providers to license streaming rights. This is perhaps one of the biggest hurdles any streaming company may face, which is why it can be extremely costly for a new brand to imitate Netflix services. Any company who streams content without first securing the proper licensing, will face heavy fines and retribution. Although the process can be a bit costly, it is not impossible. This is why Netflix, unfortunately, cannot be considered rare. Although their services are unique, and it’s this uniqueness that have brought them so much success, they are not the only video streaming company in existence.

-CORE COMPETENCIES-

Netflixs’ core competency is giving its customers an enjoyable viewing experience that is delivered to home or mobile device. This competency use to be distinctive. By delivering DVDs by mail it allowed them to compete with Blockbuster and other companies that offered store front movie rentals. Today there are other companies offering the same type of service like Amazon Prime, Hulu, and cable providers. The DVD mail business side of Netflix may not survive because of Redbox. One way Netflix is standing out from the competition is by creating original content that can only be viewed through their own streaming services, such as programs like Orange is the New Black and House of Cards.

-CORE COMPETENCIES IN RELATION TO COMPETITIVE ADVANTAGE-

Netflix's competency, from the very beginning up until now, has been their ability to give its customers streaming movies and or TV shows through their mobile devices. This is what sets them apart from any other company within that field. They were the first firm to provide this service. They also have the option of allowing their subscribers to receive DVD through the mail. Netflix did a very strategic thing by allowing their customers to have access to both the streaming service as well as the ability to receive DVD via the mail. It gives customers an additional option and I feel that is important in retaining them.

This gave them another competitive edge against other companies that already may have had taken home or mailing service for television or movie programs. There many modern companies today that are providing similar services, such as Amazon and cable companies. Netflix, however is setting themselves aside by creating original content. Many of its competitors have not done this. This is a competitive edge that keeps Netflix ahead of its competitors.