netflix case: david becomes goliath

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Netflix Case: David becomes Goliath By John Gallaugher Case Study available at: http://gallaugher.com /chapters & http://flatworldknowledge.com/pub/gallaugher

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Netflix Case: David becomes Goliath. By John Gallaugher Case Study available at: http://gallaugher.com /chapters & http://flatworldknowledge.com/pub/gallaugher. Topics Covered. NetFlix Startups vs. Established Firms Virtual vs. Physical Storefronts Long Tail Industries - PowerPoint PPT Presentation

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Page 1: Netflix Case: David becomes Goliath

Netflix Case:David becomes Goliath

By John Gallaugher

Case Study available at:http://gallaugher.com/chapters

&http://flatworldknowledge.com/pub/gallaugher

Page 2: Netflix Case: David becomes Goliath

Topics Covered

• NetFlix– Startups vs. Established Firms– Virtual vs. Physical Storefronts– Long Tail Industries– Resources for Competitive Advantage– Value of Moving Early– Short & Long Term Vulnerabilities

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• Brand

• Scale

– Distribution Centers

– Customers

– Selection

• Data / Switching Costs

Key Resources for Comp. Adv.

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Distribution Centers

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Economies of Scale

Subscribers:14 million

Subscribers:2.2 million

Cost to run the effort:$300 million

Cost to run the effort:$300 million

Vs.

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Source: Wired

Long Tail: businesses that can profitably offer a great volume of less popular products

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9

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Crowdsourcing: Outsourcing a task to a large, and undefined population in the form of an open call.

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“underwhelming”

• Not Enough Content

• No Way to Get Content to the Television

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Windowing: content is available to a given distribution channel for a specified period of time (window).

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Many Models

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