Introduction
As a company, Netflix is an interesting company as it is in an ever-changing ecosystem whereby the industry is populated by new and old economy players. On one side of the spectrum, one has the television and movie studios that produce serialized television shows and other full-length movies that are identical to the shows that were on televisions when the medium was set up (Keating, 2013). The other side of the spectrum consists of a sector that is rapidly evolving that utilizes gadgets that are computer enabled, and these devices allow customers to access the Netflix studios through the different data transmission systems.
Offering
Netflix as a company offers videos on demand. The company utilizes streaming technology to offer entertainment content to all of its customers. This means that the company is basically a service based industry. Some of the benefits that the consumers may have include the ability to watch the movies on demand. Additionally, the customers can binge watch the movies and television series that they like based on their preference. The services are also available in handheld devices, meaning that a customer can watch what they like at any time wherever they are. The product that is produced by Netflix is a convenience offering. This is because the service that the company offers is provided by other companies. The difference in this instance is that the consumers do not want to put too much effort in the services. The consumers just want to watch the shows that they like. In the case of a new target market, there would be no need to change the marketing strategy as most of the services are available to anyone, and the different target markets can choose what they like.
Product line extensions or new product development
The current service that is provided by Netflix should not necessarily be modified as the company is doing great in the market. The company may however, develop new products to the individuals who like following television shows who are not necessarily into watching on demand shows. The existing product meets the expectations of the new customers based on the fact that they have not yet experienced the service that is provided by Netflix (Kaplan, 2012). The product line extension would definitely occupy the uncontested space in the perceptual map in that it will give the new target market a set of unlimited options from which to choose from.
Product life cycle
The service that Netflix is providing is in the third stage in the lifecycle. The changes that would be effected in case they are implemented would not necessarily change the stage of the development of the service for the service sector has already been established, and there is no need for massive changes. The lifecycle marketing strategy would have to be reinforced or changed towards the use other marketing platforms such as social media.
Conclusion
Netflix is an interesting company as it is in an ever-changing ecosystem whereby the industry is populated by new and old economy players. Netflix as a company offers videos on demand. The company utilizes streaming technology to offer entertainment content to all of its customers. The product that is produced by Netflix is a convenience offering. The current service that is provided by Netflix should not necessarily be modified as the company is doing great in the market. The service that Netflix is providing is in the third stage of the lifecycle.
References
Keating, G. (2013). Netflixed: The epic battle for America's eyeballs.
Kaplan, S. (2012). The business model innovation factory: How to stay relevant when the world is changing. Hoboken, New Jersey: Wiley.
