Netflix created a defensible position against supplier power by starting to produce its own original content. This strategy reduced their dependence on third-party licensing rights, which were controlled by their suppliers. By creating its own content, Netflix not only managed to differentiate itself from its competitors but also gained more control over its supply chain, thereby reducing supplier power.

stars icon
Questions and answers
info icon

Spotify, a music streaming service, could benefit from a strategy similar to Netflix's. Just like Netflix, Spotify faces competition from other music streaming platforms like Apple Music, Amazon Music, and Tidal. To create a defensible position and differentiate itself, Spotify could invest in creating its own original content, such as exclusive music, podcasts, or live performances. This would not only attract and retain customers but also reduce dependency on third-party licensing rights.

Yes, there are several case studies that demonstrate the effectiveness of a strategy similar to Netflix's. One notable example is Amazon Prime Video. Similar to Netflix, Amazon Prime Video started as a streaming service but later began producing its own original content to compete with other platforms and reduce reliance on third-party content. This strategy has been successful, with Amazon Prime Video now being one of the leading streaming platforms globally.

The main components of Netflix's competitive strategy include:

1. Creating its own original content: This reduces their dependency on third-party licensing rights and gives them a unique selling proposition.

2. Constant innovation: Netflix continuously improves its platform and content offerings to stay ahead of competitors.

3. User experience: Netflix focuses on providing a seamless and personalized user experience, which includes a recommendation system based on user's viewing habits.

View all questions
stars icon Ask another question
This question was asked on the following resource:

Competitive Strategies

Do you feel trapped to outdo competitors? Better strategies can build a stronger defense against com...

Download template
resource preview

Download and customize more than 500 business templates

Start here ⬇️

Voila! You can now download this Presentation