Description
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Netflix Case : Netflix is a great example of a company that sells through direct channels. Please read through the case and answer the following questions. (attached)
Omnichannel vs. Multichannel: How to Know the Difference (
Answer
1. What is a multichannel strategy? An omnichannel strategy (see link)? How did Netflix disrupt the home movie market through its distribution strategy? Where did people buy/rent movies just prior to Netflix?
2. Notice the fragmentation of the at-home movie market; different segments wanted to rent from retailers, others wanted the rent-by-mail for convenience, and others wanted streaming delivery. Discuss the need for new distribution channels based on these changes in market preferences. Which competitors used a direct channel approach? Indirect channels?
3. Discuss the dynamics of the Qwickster strategy – what was the rationale? How would you describe this new distribution and branding strategy? What factors caused this distribution strategy to backfire?
4. Does Netflix use any indirect channels (partners) today? Make 2 suggestions to reach new market segments using indirect channels.