BMGT 301 Chapter Notes - Chapter 4: Gie, Disintermediation

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 301
• Professor: Wei Chen

Document Summary

Chapter 4: netflix in 2 acts: the making of an ecomme. Giant and uncertain future of atoms to bits. Netflix is a valuable company to study because it went through a lot of hardships during its switch from dvd"s to online streaming but managed to still sustain most of its market share and customers. 4. 2 act 1: david becomes goliath: crafting killer assets for dvd mail dominance. Biggest regret: taking the firm public too early b/c this required financial disclosure, which revealed netflix"s big success and attracted huge competitors! (blockbuster and walmart) Execution of successful strategy using brand, scale and data assets made netflix hard to match. Brands are built through customer experience, especially online. Netflix also had a large scale and selection of movies to choose from. Critical to keep up, because selection attracts customers and the internet makes these huge selection inventories efficient and not possible for offline firms to match.