Book: Marketing of high-technology products and innovations (3rd) Page 74 Questi
ID: 355455 • Letter: B
Question
Book: Marketing of high-technology products and innovations (3rd) Page 74Question: Wired magazine named Netflix as one of the most innovative companies in the world in 2007. Clearly, Netflix early success was largely based on first mover advantage as a product leader. However, Netflix launched its service in 1999. What configuration of strategies (Product leader, fast follower, customer intimate, operationally excellent) has enabled Netflix to maintain its position?
Write a long explanation and well-written of the required Book: Marketing of high-technology products and innovations (3rd) Page 74
Question: Wired magazine named Netflix as one of the most innovative companies in the world in 2007. Clearly, Netflix early success was largely based on first mover advantage as a product leader. However, Netflix launched its service in 1999. What configuration of strategies (Product leader, fast follower, customer intimate, operationally excellent) has enabled Netflix to maintain its position?
Write a long explanation and well-written of the required Page 74
Question: Wired magazine named Netflix as one of the most innovative companies in the world in 2007. Clearly, Netflix early success was largely based on first mover advantage as a product leader. However, Netflix launched its service in 1999. What configuration of strategies (Product leader, fast follower, customer intimate, operationally excellent) has enabled Netflix to maintain its position?
Write a long explanation and well-written of the required
Explanation / Answer
Netflix obviously started as a Product Leader wherein they started with providing movie rental service. They were the pioneer in supplying on demand movies to the customer who were looking for entertainment on demand and were successfully able to fill this requirement of the customer. With the advent of high speed internet and streaming capabilities, Netflix started offering streaming on demand and made their offering rich in content and was able to capture the entertainment on demand market successfully because of their unique offering.
In addition to this they also continued to work on programming and enriching the content and thus were able to provide suggestions and customized content to its subscriber base. This is an example of differentiated defender (customer intimate) strategy. It always focused on bettering the user experience and building relationships with subscribers by providing curated content and suggestions as per user preferences.
Thus the initial success of the Netflix was based on being a product leader in the on demand entertainment segment and their continued success was through nurturing and building relationships with customers and subscribers and providing content and entertainment which is customized to their preferences. They invested quite a lot in production of original series and films in specific genres to ensure that the customer demands are met.