Netflix.com demonstrates that it is possible for a pure-play, Web-based new busi
ID: 3562171 • Letter: N
Question
Netflix.com demonstrates that it is possible for a pure-play, Web-based new business to develop a powerful brand name in a few years and take on the giants in its field. Netflix obviously had created business model with details that existing firms had ignored. But then how was Netflix able to communicate with the consumer the benefits of this new business model? What alliances did it enter into and why? What was its business value proposition to the consumer? What other firms have used the same value proposition?
Explanation / Answer
Online Consumer Behavior. Most students are unaware of the basic behavioral realities with respect to online consumers. A basic ingredient of the old dictum,