Description
question 1) The emerging streaming media industry has already gone through several changes in its young history, and Netflix has been at the forefront of shaping it. What is your brief assessment of how Netflix has adjusted to changes in the streaming media market? What do you think it could have done differently, and what steps might it take to remain a leader in the future?
Minimum analysis post length: 300 words
Case 8. Netflix Fights to Stay Ahead of a Rapidly Changing Market
Introduction
Synopsis:
Netflix, the world’s largest subscription streaming platform, faces more competition than ever. As the streaming war heats up, Netflix’s survival depends on its ability to adapt and identify new opportunities in digital entertainment in a rapidly changing market. Netflix has long benefited from its first-mover advantage; however, the success of newer streaming services such as Disney+ pose a threat to Netflix’s long-term success. The problem is that the future changes rapidly in this industry.
Themes:
Changing technology, changing consumer preferences, competition, competitive advantage, product strategy, product life cycle, services marketing, pricing strategy, distribution strategy, nonstore retailing, customer relationships, value, implementation, customer churn
Technology has played a leading role in the evolution of the entertainment industry. Several of the major movie production companies have now opted to bypass the theater experience and instead promote a selection of their movies directly to the home viewing audience via streaming platforms such as Netflix and Hulu. Through increasing disintermediation (bypassing theaters), movie studios stand to increase profit margins dramatically. Today there are more streaming competitors than ever, including Netflix, Amazon Prime Video, Hulu, Disney+, and Apple TV+, among others.
question 2) Uber, the ride-sharing disruptive innovator, has already branched out into delivery services such as Uber Eats that are complementary to their vast ride-share driver network. What do you think of this strategy? Is expanding into adjacent services distracting or a smart growth strategy? Are there other related service markets Uber should consider? Why? minimum 300 words
Case 5. Uber: The Opportunities and Challenges of Market Disruption
Introduction
Synopsis:
By seamlessly connecting consumers and drivers through its smartphone app, Uber has changed the ride-sharing landscape for consumers and the traditional taxi and limousine industries. The company has experienced incredible success but not without a fair amount of criticism and backlash. Uber faces a number of challenges including internal struggles, legal and regulatory challenges, and global issues. Many countries and some states in the United States are making legal changes to push Uber to reclassify its drivers from independent contractors to employees. Additionally, major cities have moved to regulate Uber, while some foreign countries have banned Uber’s services. Uber will have to adapt its marketing strategy to address both domestic and international challenges.
Themes:
Marketing strategy, mobile marketing, branding, legal/regulatory environment, risk assessment, pricing issues, customer safety, market expansion, global marketing
Uber Technologies, Inc. (Uber) is a multinational tech company that provides ride-sharing services by facilitating a connection between independent contractors (drivers) and riders with the use of an app. Uber has expanded its operations to 900 cities in more than 70 countries around the world and is valued at around $82 billion. Because its services cost less than taking a traditional taxi, Uber is responsible for upending the taxi industry. The company has experienced resounding success and is looking toward continued expansion.
However, Uber has faced many challenges in the form of legal/regulatory, social, and technical obstacles. Some argue that Uber has too much control over its drivers, and therefore, they should be classified as employees rather than independent contractors, which would create a huge tax expense for Uber. Others accuse Uber of not vetting their drivers, creating potentially unsafe situations. Some major cities are banning ride-sharing services such as Uber because of these concerns. Additionally, Uber has faced various lawsuits. Its presence in the market has influenced lawmakers to draft new regulations to govern ride-sharing systems. Legislation can often hinder a company’s expansion opportunities because of the resources it must expend to comply with regulatory requirements. To be successful Uber must address these issues in its marketing strategy so it can reduce resistance as it expands into other cities.
