Netflix

Strengths:

* Subscription-style e-commerce service- low monthly fees enables Netflix to compete with Blockbuster

* Established leader in the growing Home Entertainment Market and Internet

* Less overheard compared to video rental stores- no storefront means- less employees are hired.

* Established consumer base- that looks at Netflix as a mean of convenience.

* No Late Fees- No line ups

* Customers have unlimited access to the largest movie database, more of a selection compared to other video stores.

* Easy to navigate website. Customers can find their favorites in minutes.

* First-Move Advantage- they are the first online DVD store

Weaknesses:

- Not economical for consumers who watch less than one movie a week, although its inexpensive and convenient

- Customers cannot get the movies immediately have to wait until they arrive

- Inventory Control- movies might arrive late, or get lost during delivery which will result in loss of customers.

- Although DVDs are unlimited- customer is only allowed a certain out at a time.

- Slow process in shipping/receiving movies

Opportunities:

- Video Games, is also a huge industry Netflix could expand to.

- Partner up with Amazon.com as a cross promotion- customers could not only rent but also buy desired DVD's.

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