MBA 703 Module 2 - Darban + UPDATED ACTUAL Questions
and CORRECT Answers
By going public Netflix had to disclose its financial position.
Resulted in two big competitors entering the market: Blockbuster and Walmart.
Netflix responded with: Constant customer and revenue growth
Record profits
Rising stock price
, Netflix executed a successful strategy of creating Brand
reinforcing resources rivals could not match: Scale
Data Asset
Brands are built through customer experience.
Walmart and Blockbuster could create brand awareness but couldn't translate that
into an industry advantage.
Netflix remained segment leader as it had: An early market entry
Effective execution
Netflix Netflix's advantage came from the scale of the firm's selection.
Long tail Large selection of content beneficial for Internet retailers.
Selection attracts customers.
The internet allows large-selection inventory efficiencies that offline firms can't
match.
Big Customer Base Scale economies can be attained by leveraging the cost of an investment across
increasing units of production.
Having a bigger customer base enables firms to:
Have better cost structure.
Have better profit prospects.
Offer better pricing.
Leveraging The Data Assets User data can be leveraged to provide better customer experience and build
brands.
Atoms to BITS The phrase represents the shift from physical products to digital products.
The Quickster Deabcle Firm was split into two.
Internet based streaming services.
Traditional DVD by mail services renamed Qwikster
Transition from a DVD based service to Internet based video streaming business
resulted in:
Drop in customer base.
Drastic fall of share prices.
Digital Products and Marginal Cost *Costs that do not vary according to production volume are fixed costs
• Marginal costs are associated with each individual unit produced
• Marginal costs for digital goods are often (but not always) zero
and CORRECT Answers
By going public Netflix had to disclose its financial position.
Resulted in two big competitors entering the market: Blockbuster and Walmart.
Netflix responded with: Constant customer and revenue growth
Record profits
Rising stock price
, Netflix executed a successful strategy of creating Brand
reinforcing resources rivals could not match: Scale
Data Asset
Brands are built through customer experience.
Walmart and Blockbuster could create brand awareness but couldn't translate that
into an industry advantage.
Netflix remained segment leader as it had: An early market entry
Effective execution
Netflix Netflix's advantage came from the scale of the firm's selection.
Long tail Large selection of content beneficial for Internet retailers.
Selection attracts customers.
The internet allows large-selection inventory efficiencies that offline firms can't
match.
Big Customer Base Scale economies can be attained by leveraging the cost of an investment across
increasing units of production.
Having a bigger customer base enables firms to:
Have better cost structure.
Have better profit prospects.
Offer better pricing.
Leveraging The Data Assets User data can be leveraged to provide better customer experience and build
brands.
Atoms to BITS The phrase represents the shift from physical products to digital products.
The Quickster Deabcle Firm was split into two.
Internet based streaming services.
Traditional DVD by mail services renamed Qwikster
Transition from a DVD based service to Internet based video streaming business
resulted in:
Drop in customer base.
Drastic fall of share prices.
Digital Products and Marginal Cost *Costs that do not vary according to production volume are fixed costs
• Marginal costs are associated with each individual unit produced
• Marginal costs for digital goods are often (but not always) zero
