Zara and Netflix Essay

Tags: supply chain management business model netflix amazon management economics technology hbo advertising

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Total Length: 734 words ( 2 double-spaced pages)

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Question 1

In essence, Zara makes use of not only user experience, but also technology as a key driver of its business model. This is, in basic terms, the reason as to why the company has managed to run circles around its competitors. While on the technology front the company has managed to perfectly integrate its brick and mortar premises with an impressive online presence, the company’s user experience is second to none. In this case, the company delivers to its clientele the new products in a way many fashion brands have found hard to replicate. Its collections are changed every fortnight. In the words of Kim (2018), the firm coordinates “its production as well as supply in a way that achieves the balance among the end-consumer markets, in order to minimize the mismatch between demand and supply on a global scale” (p. 274). Some of the company’s competitors including, but not limited to, Gap and Mango change their collection five to seven times per year, on average. This is essentially the reason as to why Zara continues to perform better than its closest competitors.

Question 2

Competition remains of the most significant threats for Netflix. This is more so the case with regard to the rollout of new innovative solutions where Netflix could be outpaced by some of its most vicious rivals.

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Moskowitz (2018) points out that while Netflix and HBO can share the pie, CBS does not present a big threat at the moment. However, a new innovative move by the likes of Amazon could complicate the equation for Netflix. Others who could join the fray in the future include Walt Disney. As a matter of fact, the company has in the past demonstrated its willingness to directly engage consumers by pulling out of Netflix (Chin, 2018). Netflix is responding to the threat via enhanced global profitability – as it seeks to ensure that its international business gathers traction (Chin, 2018).

Question 3

Unlike its competitors, Hulu “has a duel revenue stream from both paid subscriptions to its premium service (called Hulu Plus) and advertising” (Frontinelle, 2018). However, as the author further points out, unlike its peers in the industry, such as Netflix and Redbox, Hulu does not have a well-regarded hit movies selection. Netflix on the other hand largely strolls the market like a colossus – with most entities having failed in….....

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References

Chin, K. (2018). Netflix is Headed for a Huge Profit Milestone in 2018. Retrieved from http://www.pulselive.co.ke/bi/finance/finance-netflix-is-headed-for-a-huge-profit-milestone-in-2018-id7851798.html

Frontinelle, A. (2018). The Economics of Hulu, Netflix, Redbox and Blockbuster. Retrieved from https://www.investopedia.com/articles/investing/092414/economics-hulu-netflix-redbox-and-blockbuster.asp

Kim, B. (2018). Supply Chain Management: A Learning Perspective (3rd ed.). New York, NY: Cambridge University Press.

Moskowitz, D. (2018). The Biggest Threats to Netflix (NFLX). Retrieved from https://www.investopedia.com/articles/investing/040815/biggest-threats-netflix-nflx.asp

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