Netflix Specialities
Second part of the question is to answer why Netflix has the highest position in the strategic group map compared to the rest competitors. Netflix has long held position as supreme power because of its originality, absolute amount of high quality content from leading content providers, and ability to meet increasing demand from the buyers with high performance streaming service. Indeed, Netflix has a stable position since it was established in 1997 and has been well-known and famous among the movie buffs. All subscribers are loyal to Netflix because of its great services provided.
Furthermore, Netflix has expected that the number of members for DVD-by-mail subscription would decline, so Netflix decided to improve its streaming subscription service. Netflix developed its core strategy in 2012, decided to grow its subscription business domestically and globally. Netflix was continuously improving in three major ways by expanding the size of its streaming content library, about 60,000 titles, working with consumer electronic partners to increase the number of Internet-connected devices that could be used to view Netflix-streamed content and also improving the ease way that subscribers could navigate the website to locate and select content they wanted to watch. Netflix was a clear leader in Internet streaming with over 23 million subscribers watched an average of 20 hours of video monthly. But still, Netflix wanted to maintain both methods of subscribing the movies.
For the DVD-by-mail subscription, they want to increase more the number of distribution centre and shipping point throughout the U.S. since the delivery of DVD will take one business day only. Netflix already has 50 distribution centres and 50 shipping points scattered accross U.S. There are some advantages the subscribers would experience if they choose the DVD-by-mail subscription, because it is easier. The case also describes the customers of Netflix are from those who liked the convenience of home delivery and instant streaming, those bargain hunters who are enthused about being able to watch many movies for an economical monthly price as well as for movie buffs who wanted the ability to choose from a very wide selection of films and TV shows. Therefore, this service is definitely suitable for them since Netflix did not limit the time keeping for DVDs, no extra fees charged (no late fees and no shipping fees) and Netflix also gives the convenience of mailing back the DVDs because a postage-paid return envelope is provided to them.