Question

After reading the Streaming Wars case (Case #5 in the book), answer the following questions:

In relation to these resources and capabilities, assess the positions of both Netflix and Disney.

Answer 1

Netflix and Disney have unique positions in terms of resources and capabilities, with both companies having positive and negative characteristics.

Step-by-step explanation:

In relation to resources and capabilities, both Netflix and Disney have unique positions.

Netflix:

• Resources: Netflix has a vast library of movies and TV shows, an established brand, and a large customer base.
• Capabilities: Netflix has expertise in content creation and distribution, personalized recommendation algorithms, and a scalable streaming infrastructure.

Disney:

• Resources: Disney owns a wide range of popular intellectual properties, including Marvel, Star Wars, and Disney/Pixar characters.
• Capabilities: Disney has a strong brand reputation, a well-established content production and distribution network, and the ability to create engaging and high-quality content.

Both companies have positive characteristics. Netflix's subscription-based model and data-driven approach allow for personalized content recommendations, while Disney's strong IP portfolio enables them to create highly marketable franchises. However, there are also negative aspects. Netflix faces increased competition and rising content costs, while Disney's heavy reliance on theatrical releases could be a disadvantage in the streaming era.

Answer 2

Netflix had a vast and diverse content library, including a large number of original productions. Netflix had a significant global subscriber base, making it a leading streaming service worldwide.

Netflix leveraged data analytics extensively to understand viewer preferences and create content tailored to its audience. Netflix was a pioneer in the streaming industry, and its subscription-based model was highly successful.

The company faced increasing competition but maintained a strong market position due to its focus on content quality, global availability, and user experience. Disney owned a vast array of popular content, including franchises like Marvel, Star Wars, and Disney/Pixar.