1. Netflix is in a good position today due to the competitive advantage that it has over traditional television. Even in the internet television space the company is in a comfortable position, despite the fact that competitive pressure has increased from players like Amazon and Hulu. Other players like HBO is also vying this space. Netflix is managing to hold onto its turf by investing in content development. The company is making sure that its content matches with the tastes of the audience.
2. Yes, tradeoffs are inherent in their business model. The company is trying to achieve a reasonable balance with regards to their growth so that focus can be on content development. They want to grow bit by bit and concentrate on developing content that appeal to the tastes of viewers in different countries. This will ensure that their growth will be sustainable in the long run.
3. The fact that the strategy and business model of Netflix is different from its competitors makes it unique. As discussed earlier Netflix, unlike Amazon and Hulu, is not seeking sudden growth. It is seeking to grow bit by bit so that it is able to offer content that is not geared to a single audience but is geared to a wider audience. It is using a conglomerated niche strategy and is serving different audiences separately but also simultaneously.
4. Yes, there is a fit between their different activities. Its activities like streaming media, video-on-demand online and DVD by mail are all undertaken with the primary objective of catering to the requirements of its varied customers across the world. Its different activities are being undertaken to ensure that the company is able to successfully differentiate its offerings (from the offerings of its competitors) and hence is able to grow on a sustainable basis in the long run.
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