Analisis Netflix Vs Akamai

Netflix started its business in 1997, with the vision to provide home movie service that would better satisfy customers by offering DVD rentals via mail at a flat monthly subscription rate. Netflix at that time recognized that late fees were bringing big bucks for Blockbuster, but those fees were alienating its customers. They also understood that convenience was their top priority in order to better satisfy their customers and they used this knowledge to identify its winning competitive advantage which was DVDs mailed right to your door, no limit on rental time, no late fees. At that time where video markets were populated with retail outlets, Netflix only operated out of a single distribution center located in California. That meant that, in order to increase penetration and share in existing markets, Netflix didn’t have to expand geographic coverage, they didn’t have to spend in expensive convenient stores, expensive managers, or expensive staff across the stores; they only needed one big warehouse and their delivery service by mail to be successful. Another important activity for Netflix success was that they recognized that in traditional video rental outlets, new movie realizes would make up over 70% of total rentals, and instead of that, Netflix engineers developed a proprietary recommendations system to better balance customer demand. Their recommendations page not only included a list of films appealing to your preferences, but also they implemented a synopsis, description and reviews of each film. This system helped them increase utilization of Netflix’s library of films available in stock, rather than requiring the purchase of more copies of newer films. This activity also helped improve customer frustration, because now films where more available to customers.

Netflix did not stopped there, they also opened more distribution centers across the country, the centers themselves where not expensive investments since they only needed a warehouse to meet Netflix’s needs, and the gain was much bigger since they improve they delivery service. Moreover pressure of suppliers was not a big threat for them. The USPS was facing a general decline in first class mail and Netflix represented its fastest growing first class customer, in consequence they started working closer helping each other. Netflix also was growing so fast that the studios began to look upon this partnership with increasing favor. Films need advertising and what better way than Netflix.

Since Netflix first started, they have been improving; adapting and creating more activities that support its competitive advantage, operational effectiveness and strategy. They have developed an advanced technology that helps the customer to easily join and enjoy their services, they now provide on-demand online streaming media to viewers in North and South America, the Caribbean, and Europe, being now the worlds largest movie rental service, they have

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