How Did Netflix Build Its Sustainable Competitive Advantage? -The Key Success Factors

Shah Mohammed
Dec 18, 2018 · 31 min read
Source: Fortune, CNN Money

POSITIONING YOUR BRAND

1) Fighting Against Non-Consumption

2) Entry Barriers

VALUE PROPOSITIONS

Research-Understanding the Users

Customer’s problems, Jobs to be done

Netflix gave more freedom to consumers. It was letting customers construct their own experiences.

TARGET SEGMENT-OPINION LEADERS

Netflix’s Early Adopters

SUPPLY CHAIN MANAGEMENT

The Material

Packaging

Transportation, Shipping

Warehouse Management

Distribution system

Inventory Management

BUILDING HABITS

Begin With Familiarity

Ability

A new technology has to enhance the established behaviour and not to overthrow.

Triggers

Time Investment

Rewards

EMOTIONAL BRANDING

Preference

Binge Viewing

Experience

Consumer Engagement

It is not about market share but sharing space in the mind of consumers.

THREAT OR OPPORTUNITY

CULTURE

Hire Right People

“Building the muscle to hire great people is a huge competitive advantage.” -Patty McCord.

“If you have the right people, then the problem of how to motivate and how to manage people properly goes away”-Jim Collins

Freedom and Responsibility

Add Little Weirdness

Appreciate But Be Sincere and Honest

Share The Information, Be Transparent

BLOCKBUSTER

Netflix’s Gain

CINEMATCH EXPERIENCE

ORIGINAL CONTENT

STREAMING DEVICES AND PARTNERS

Rendering Engine

Network Effects

FOCUS

MARC RANDOLPH

REED HASTINGS

CONCLUSION

Shah Mohammed

Written by

Business Growth Consultant, Design Thinker, India. Facing problems in business? For Suggestions, mail to mmshah8@gmail.com

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade