Write 7 pages with APA style on Netflixs Business Model and Strategy in Renting Movies. The movie rental industry is highly dependent on the buyers similar to that of other industry. Buyers purchase DVD’s or access the internet to watch movies of their preferred choices. Contextually, they need to pay for the movies that they desire to watch and in turn, they seek utmost quality for the same. Additionally, having several players offering a similar product, buyers are enabled with a number of choices to choose from. This raises buyers’ bargaining power (Thompson, n.d.). Bargaining Power of the Suppliers In this industry sector, suppliers have the authority to choose a single dealer through whom they can enhance their bargaining power. However, in order to maximize profit and market share, suppliers are inclined to sell their products to every company, thereby limiting their bargaining power to medium (Thompson, n.d.). Rivalry The cost of entering into this kind of industry is quite reasonable owing to which the competition among the companies is quite high. A few of the competitors in this particular industry l include Blockbuster, internet movies and TV content providers among the prime ones (Thompson, n.d.). In general, there are no such threats of substitute for this kind of product owing to the reason that movies and TV programs have similar content irrespective of whoever is presented to the viewers. However, piracy and illegal file sharing can be a threat to the products (Thompson, n.d.). Owing to low entry cost, more and more competitors can enter into this kind of business. However, certain big players like Blockbuster and Netflix seems to dominate this industry (Thompson, n.d.).


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