Market of Services Assignment
Market of Services Assignment
Market of Services Assignment
MARKETING OF SERVICE
Ans (1) –
CULTURAL
A major cultural difference between the United States and Asia’s country
is patience.
Asians tend to be restrained and reserved in most situations, they willoccasional
ly show flashes of extreme emotion.
ADMINISTRATIVE
Follows Indian government laws/policies by declaring the content(censored/non
censored)
GEOGRAPHIC
Netflix has 58 distribution centers (worldwide), dispersed in such a way that the
company candeliver titles to over 97 percent of its subscribers in about one busi
ness day (Netflix Corporate Fact Sheet:2010) Vs 1 in India (BKC Mumbai)
Caters to different time zones in US Vs same time zone (India)
ECONOMIC
Differences in consumer incomes
The Wall Street Journal, citing an IHS Markit expert,reportsthat
only 3.0% of India’s 4G smartphoneusers have digital video subscriptions.In th
e US, average lunch costs are $10 and Netflix charges $7.99/month. In India, N
etflix launched at₹500/month, which is almost the same as that of US prices. Pe
r capita income in the US is 17 timesthat of India. Indian per capita Income is as
low as ₹1 lakh even in Urban areas. Average Pay-TV
options are start at ₹100/month.•Penetration of Smart TV sets is very low in Ind
ia. On top of that, Hotstar charges ₹200/month forlatest movies and most watch
ed TV content along with 45 HBO originals shows including “Game ofThrones
”
Answer (2) -
LEGAL & POLITICAL
Piracy Laws-Content Licenses and copyrights
ECONOMICAL
Increase in Yd ( Indians spending more onentertainment)-Subscription fee like
cable
SOCIAL
Suitable for personalized viewing-Web series gaining popularity
Watching TV is a social phenomenon
TECHNOLOGICAL
Increasing SVOD demand-Requires High internet speed-Apps are accessible/av
ailable everywhere but smart TVs aren’t.
Answer (3) –
Threats of Potential New entrants:
Changing technology up gradation.
Content availability and convenience.
Bargaining power of Suppliers: (High)
License to distribute the content
Netflix competing with the traditional media distributors.
Bargaining power of Buyers :( High)
Revenue depends upon the subscribers.
Buyers can switch to other subscribers.
Answer (4) -
STRENGTH:
Competitive Pricing.
Netflix provides original content.
Large numbers of diverse shows.
Brand name.
Adaptability.
OPPORTUNITIES:
Offer alternative subscription to less frequent movie renters.
Promotions and advertisements.
Video game market.
Live sports streaming.
THREATS:
Competitive pressures.
Piracy issues.
WEAKNESS:
Lack of updated movie selection.
Cost of original content.
Answer (5) -
VALUE:
Values customer base by offering a largeamount of great movies and TV for areaso
nable monthly rate.
RARITY:
Rarity by creating amazing originalcontent likeHouse of Cards,Narcos,Sacred gam
es etc.
IMITABILITY:
Obvious as their competition is having atough time trying to imitate.
ORGANIZATION:
Quite organized and very capable ofexploiting its resources, capabilities, andcomp
etitive advantage to its fullestpotential.
Answer (6)-
LIVE STREAMING OF SPORTS.
Additional feature to purchase specific categories of videos.
Bundling broadband with Netflix subscription.
Innovation in Pricing.
Local language program streaming.
Need to concentrate in piracy issues.
RICHARD BAGE
PGDM GLOBAL
0191PGM010