RSM392H1 Lecture Notes - Lecture 5: Binge-Watching, Netflix, Costco
Document Summary
Lecture 5: tool sources of competitive advantage, insight generation. Turning strategy from external to internal (positioning analysis) 25-30 mc (30 mins (cid:1008)(cid:1009) (cid:373)i(cid:374)s(cid:895), do(cid:374)"t (cid:374)eed to k(cid:374)ow fa(cid:272)ts, (cid:271)ut i(cid:374)sights fro(cid:373) (cid:272)ase (cid:374)eeded. Netflix: have a beaker and boat problem so to limit copy-ability and make themselves unique in order to keep people binge watching. Their own content means boat problem might be an issue (cid:894)starti(cid:374)g to do thi(cid:374)gs that the(cid:455) did(cid:374)"t start (cid:271)usi(cid:374)ess off doi(cid:374)g will it affect the streaming side of netflix?) Core concepts: attractive industry structure & competitive advantage. 5 forces application around discount retail us 1991-1992: threats of entry high. Economies of scale; substitutes: individual retails so high; rivals: costco, kmart. Medium; supplier power moderate because of pull (high backward integration threat); buyer power (price differentiation do(cid:374)"t use what we k(cid:374)ow a(cid:271)out wal(cid:373)art when using lenses to be for discount retail) Rural -> lower buyer power, urban -> high buyer power.
