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E-Marketing Brief: Netflix's Supply Chain

NETFLIX

E- Marketing Brief

What is an E-Marketing Brief? A brief is the summary of the details about a business and its products from a competitive and strategic point of view.

This week, you will submit a written brief describing best practices employed by a business relating to e-marketing topics. Find a topic based on material covered in class, or something in the news that is important to firms engaged in e-business.

Potential best practice topics might include firms that employed profitable:

• CRM
• Supply chain management
• Online research
• Telephony (Net for voice communication)
• Web personalization/customization
• Performance metrics
• Global adoption - selecting best markets for e-commerce
• Consumer behavior online
• Good e-business models in terms of profitability (e.g., online auctions)
• Anything about wireless

Try to find a narrow topic, such as natural or paid search engine optimization, social networking, or a specific company practice that worked well. You can talk about a practice--such as mobile commerce, or a company--such as eBay's latest and greatest tactic and what it did for them.
Additionally, please keep the following information in mind when choosing your company this week. Your final brief will include these final qualities:

Write for a business executive. This means concise, third person, formal reporting. It also means selecting best practices that are important for businesses, not consumers. For example, great online shopping sites for consumers is not appropriate, but if written from the company perspective and describing why an online retailing site is successful, complete with metrics, that is great.

You'll need more than company Web site research to do this right. You need at least 3 properly cited references; with at least 2 being from media articles or interviews (versus a company's own press releases).All references must be current (less than two years old). Be sure to include your complete references in APA format at the end so others can read more on the topic. In other words, this is more than just an article summary about a successful company.

It must include metrics/some quantifiable measures of success: Very important, and sometimes difficult to find. Profits over the time period are ok, but not very strong because you can't isolate the part relating to a particular practice. It should also be related to the class theories through some analysis of why this practice was successful.

Solution Preview

Hope this helps. Good luck.

E-Marketing Brief
Netflix: Supply Chain Management

• Netflix, a leading Internet entertainment subscription service has successfully managed their supply chain management to reduce costs, increase customer satisfaction, and maximize their competitive advantage. Netflix has consistently been forward thinking in managing their supply chain. When the company started, in 1997, its competitors operated brick and mortar stores. Netflix was able to have a competitive advantage by mailing iconic red envelopes to customers' homes. Since that time, the company has evolved, utilizing advances in technology to offer on-demand Internet streaming as well as company produced programming to increase its' competitive advantage. The company's willingness to adapt its' supply chain has resulted in increased margin and more subscribers.
• Netflix Strategic Analysis: Netflix accounts for "about 89 percent of the TV streams" (Lieberman, 2013), which account for "80 percent of the streams for subscription video on demand services" (Lieberman, 2013). The company's competition includes Hulu Plus with a 10 percent share, and Amazon Prime with a 2 percent share (Lieberman, 2013). Netflix began as a DVD rental operation but the company has segued its offer to include streaming. This addresses consumers' interest in "instant" entertainment. It also allows consumers an affordable, legal way to enjoy Internet entertainment. Netflix boasts 29.8 million subscribers in the United States who stream entertainment. Only 7.51million subscribers in the United States continue to enjoy DVD's mailed to their home by the company (The Associated Press, 2013). Netflix is a public company, with the stock trading at a three -year high. The stock has "nearly tripled in value just this year" (Yousuf, 2013). The company is taking on cable television and all forms of entertainment in general to gain a greater share of market. To do this, the company is producing its own content and ...

Solution Summary

This detailed solution provides a e-marketing brief describing best practice employed relating to e- marketing and supply chain practices. It includes selecting best practices that are important for businesses, not consumers. Includes properly cited references; metrics/some quantifiable measures of success.

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