The industry that Netflix operates in is video on demand. Netflix is a leader within their industry. The profitability of this particular industry has done very well since its inception. Netflix specifically has done so well that brick and mortar stores (like Blockbuster) have either seen significant declines or even closed all together. I believe that this is very much due to the convenience of video on demand. With the rise of technology a person can now watch any show at any time. This can be done without waiting in line to rent or being worried about late fees. Netflix in one of the best known name in Video on demand and has done many things to keep itself at the top of the industry. I believe this is one of the main reasons …show more content…
This is going to present some challenges. The first challenge I see is the competition. Other companies (like Amazon) already have an international base and have their own VOD(video on demand) service. Also moving into new markets means that there will be new competitors that may already have a strong hold in those countries. I would recommend Netflix market test their subscription service starting in large metropolitan areas and then use polls/questionnaires to get feedback in the new areas. Another significant threat for Netflix is the technology itself. Not every country will have the same system and not every country will have the infrastructure to support a system like Netflix. For a company that is entirely technology based these are two very important but separate hurdles. For the system requirements Netflix will need to hire and maintain a group of the best IT people from the areas in which it chooses to operate. Those IT people will need to collaborate with the current system IT to fix any gaps that are present in the separate systems. For the hurdle of infrastructure Netflix will need to partner with either government or private company entities to make sure the capability to stream videos is sustainable. This is another reason that starting in the metropolitan areas is a good choice. These areas offer the greatest number of potential customers with the least input in terms