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NETFLIX here today- Gone Tomorrow

NETFLIX here today- Gone Tomorrow. WMBA 509 Research Project By TJ Johnson. 1/3 rd of the Pie. What is the Vrin Framework?. VRIN model determines if a company’s resource(s) or product are a source of sustainable competitive advantage in the marketplace - Valuable - Rare

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NETFLIX here today- Gone Tomorrow

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  1. NETFLIX here today- Gone Tomorrow WMBA 509 Research Project By TJ Johnson 1/3rd of the Pie

  2. What is the Vrin Framework? • VRIN model determines if a company’s resource(s) or product are a source of sustainable competitive advantage in the marketplace • - Valuable • - Rare • - Inimitable • - Non- substitutable

  3. Through its Longtail business model Netflix has been able to establish a strong position in the DVD-by-Mail and Online Digital Streaming entertainment industry Valuable resource(s) : Catalog Content & Low Overhead. Busy patrons don’t have time to frequent the neighborhood “brick and mortal” rental locations. Rare: Large Catalog Content that can be accessed via mail or online. Size and rarity of its rental catalog (not many Biographies in most Home Rental Stores). Longtail Model. 32% Market Share

  4. Value Proposition no longer Unique • Though DVD-by-mail or an Online Streaming business model may have been revolutionary at one time, today as the online/digital capabilities of home or mobile entertainment increase the barriers to entry for the digital media entertainment diminishes, thereby weakening Netflix long term sustainability. Inimitable : limited content licensing agreements likely to weaken Netflix. Technological advances of online content distribution allow other companies to do what made Netflix unique Non- substitutable : Redbox, Blockbuster Kiosks, YouTube, Amazon Prime, HULU Plus, HBO GO, Showtime, Apple ITunes, Google Play, etc

  5. Questions and Comments

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