Netflix competitive analysis Essay -- essays research papers

Competitive AnalysisBlockbuster Inc. and Movie Gallery are currently the two strongest competitors in the market, and and then pose the biggest threats to Netflix. Amazon, Intelliflicks, and Cleanfilms are all present in the market, but dont possess enough force at this time to be considered a threat to Netflix.BlockbusterAs of right now, Blockbuster is the biggest competitive threat to Netflix. Blockbuster was incorporated in 1989 in Delaware and is a major renter of phratry videocassettes, DVDs and video games throughout the Americas, as well as Europe, Asia and Australia. Blockbuster operated about 9,100 stores in the U.S. and 24 other countries, as of Dec. 2004. In the summer of 2004, Blockbuster launched an online lease program that provides a challenging competitive match for Netflix. Blockbusters online debut was in development for grades. In 2002 Blockbuster purchased FilmCaddy, an online movie rental company that became Blockbusters internet channel. Blockbuster comple ted consumer research, both qualitative and quantitative, and found that online customers preferred a program that would give them both Internet convenience and in-store benefits. Blockbuster dogged to incorporate its extensive network of stores to provide a powerful competitive edge. In addition, the chain has said it will invest $170 million this year alone in its online-rental operation. Financially, Blockbuster has revenues of 6.10 billion, with a gross profit of 3.61 billion, and a negative ne...