Question 1
Zara business model provides incentives for success to the workers. The model provides for commissions on salaries which provides for up to 70% of the salaries. As a result, the managers and workers are motivated towards achieving success. Additionally, the staff members of Zara are able to determine the customer preferences and testes by counter checking at the sold and unsold items thus determining which ones are more preferred. It also provides for a point of sale system that helps customers acquire information on purchases that ranks sales of the products. The point of sale systems are all linked to the personal data assistant which all the store managers possess (Gallaugher, 2013).
Zara’s business model is unique and different from other business models thus providing the company with a competitive edge against all the competitors such as Gap. Zara provides for unique and creative modes for the customers which add value to the products. In such a way, customers are able to maintain the brand and the company gains an advantage over the competitors.
Question 2
The most significant threat to Netflix is the competitors who offer original content at a cheaper price such as Amazon Prime and YouTube. The two offer a direct competition and will serve as a long term threat to the company. The company to counter the threat has decided to slash the prices that they charge to offer their services to the customers. In slashing down the prices charged to customers in order to maintain customer loyalty, the company faces challenges in acquiring sufficient revenues and profit margins. The cost of content is high and cutting down the prices will mean that the company acquires smaller profit margins (Gallaugher, 2013).
Question 3
Netflix vs. Blockbuster and other online streaming services
Netflix offered DVDs by mail services whereas Blockbuster offered only DVDs in an exclusive rental environment. Additionally, Netflix currently offers to its customers unlimited online streaming of video content at a fee of $9 every month. The differences in the online streaming services are numerous since every service has a different business model (Keating, 2013).
On the other hand, the two services are quite similar in a number of ways. In the DVD by mail service, the two companies offer free shipping services to its customers. The companies also offer no late rates which is an important feature in marketing the products. The two companies offer video games in their services and also have worked to ensure that there is the blue ray DVDs used which is the next generation DVD. The similarities hold for most of the online streaming companies. The differences only appear in the pricing. For example, Netflix offers online streaming of content at $9 per month whereas Hulu offers similar services at $8 per month (Ton, 2014).
Question 4
Netflix menu options
The Netflix system menu options provide customers with various platforms that serve their needs. The options include but not limited to;
Sign In/Sign up – The menu option is used by new and existent customers using the service. New customers are allowed to register through a process where they provide their personal information and billing information. Existent customers only require signing in using their and password.
Data provided by customers to the information system on Netflix is used by the company to make decisions on what to offer to the customers. The system collects data on the preferences of customers with regards to the television shows thus providing the users with a personalized list of suggestions that they can watch (Alter, 2001).
References;
Gallaugher, J. (2012). Information systems: A manager’s guide to harnessing technology (ver. 1.3). Irvington, NY: Flat World Knowledge.
Keating, G. (2013). Netflix: The epic battle for America's eyeballs. New York, New York: Portfolio/Penguin.
Ton, Z. (2014). The good jobs strategy: How the smartest companies invest in employees to lower costs and boost profits. Boston: New Harvest, Houghton Mifflin Harcourt.
Alter, S. (2001). Information systems: Foundation of e-business. Prentice Hall PTR.
