Pavel Mikhasenok

ITS 380

CH 2 Projects: Question 1

 

Netflix is one of the largest internet-based content providers. They have over 151 million subscribers in 190 countries. Netflix provides unlimited access to latest movies, TV shows and series. Netflix’s revenue model is based on a monthly subscription fee. They offer different subscription plans starting from $8.99 a month which is cheap and affordable. Some plans allow up to 4 people to use the account at the same time; this proposition gives Netflix a good competitive advantage over the competitors. Also, Netflix has a mobile platform where users can access the content from their phones; users have the ability to download the desired movie or a show so they can watch it without having internet connection. Most of the advertising comes through the social media to attract more customers.

Netflix’s biggest competitor is Amazon. Amazon is the largest e-commerce company in the world. Not only they sell products, they also provide media content like music, videos and photo storages. Amazon Prime users have unlimited access to all those features at the same subscription price, which makes amazon the biggest threat not only to Netflix, but to all the media content providers.

It appears that Netflix follows the Vertical organizational structure (pic.1). At the top of the structure is a founder and CEO Reed Hasting. He oversees the rest of the officers. Each of the officers have their own management and employee team.