1. What were the most important weaknesses of Netflix’s market position in 2010 and 2011?
The most important weakness Netflix displayed was that it was mainly a DVD subscription service. This drew the customers in that wanted to be mailed one or two videos at a time and delivery usually took two to three days. However, this brought one significant problem to light. Who was to take the financial loss in replacing the videos that were damaged or unreturned? Netflix was left to pay for the high replacement cost of the videos and the potential deficit outweighed the projected income.

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2. What were the key elements of Netflix’s new strategy?
Netflix’s new strategy was to begin implementing a system that would allow subscribers access from a variety of different mediums. Users can continue to take advantage of the traditional mail service to videos or they can begin streaming their video instantly. This was the strategy that would corner the market. Instead of customers waiting two or three days for their videos to arrive, they could watch them instantly from the comfort of their home.

3. What are the implications of Netflix’s new strategy for the cable television systems like Comcast and Time Warner?
Netflix had a variety of implications for television systems to be incorporated with these networks. One of which, was that Netflix continued to offer full seasons of shows that may have become aged and outdated, allowing users to have complete access to them. Second, Netflix began reviving a large selection of genres to choose from, anywhere from independent films to cult classics. This targeted more people who hinge directly on certain cable followers, such as MTV, AMC, etc. Lastly, they began developing their own series of shows, called Netflix Original Series, which helped put them in direct competition with the cable networks.

4. Why is Netflix in competition with Apple, Amazon, and Google, and what strengths does Netflix bring to the market?
Netflix is in competition with these companies due to the fact that they also offer online streaming services. Although Netflix was the original streaming company, they have the advantage by being the first ones in the market space. They have a devout following that is made up of loyal users. Also, Netflix offers a competitively low price subscription whereas other companies may not be as affordable and Netflix continues to offer customers the traditional mail service for videos, while the competitors do not.