Ebusiness strategy of netflix Term Paper Example | Topics and Well Written Essays - 2000 words

Ebusiness system of netflix - Term Paper ExampleThe internet has played a major role in shaping the businesses of today. Whether it is related to managing inventory, past data, customer data or building complex functions like smart reimbursement of inventory levels, identifying consumer patterns or trends etc., the internet plays a signifi brush offt role in the operations and management of almost every business of today. It has become so entrenched in todays world that is imperative for businesses to maintain an online presence as well to interact with customers, spread product ken and showcase their offerings. According to Michael E. Porter, the internet is not a new technology for todays world. It has been there for more than a decade now and organizations should be smart enough to learn from the risks that can be associated with integrating business with the internet. Now is the age of accepting the internet as an enabling technology that can help businesses cut down on their costs evidentially, position their brand better and create a more competitive marketplace (Porter, 2001). This too is only possible if a strategically drafted competitive strategy is in place to attract the target market.Netflix is targeted towards dominating the Internet TV category. However, the internet does not fix the competitors as such and with the shift of its DVD business towards live streaming, the challenge does not remain in maintaining the best logistics system rather, it has shifted to maintaining relationships with the video providers. Netflixs main competitor, Blockbuster, closed down recently but this is ascribable to restructuring and not bankruptcy (Indiviglio, 2010). They are expected to come back into the market with bigger and better service that Netflix cannot ascertain completely at this point. Netflix accepts that the DVD rental is not feasible in the long draw and has to be let go of at some point in time. However, it managed to aggravate a significant portion of its target