Netflix: David Becomes Goliath
Introduction
Key Takeaways
- Analysts and managers have struggled to realize that dot-com startup Netflix could actually create sustainable competitive advantage, beating back challenges from Wal-Mart and Blockbuster, among others.
- Data disclosure required by public companies may have attracted these larger rivals to the firm's market.
- Netflix operates via a DVD subscription and video streaming model. Although sometimes referred to as "rental," the model is really a substitute good for conventional use-based media rental.