netflix - disruptive innovation

8/17/2019 Netflix - Disruptive Innovation

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Muhammad Owais Danish

Muhammad Saad Siddiqui

- Comprehensive Range of Information

- A Concept

- Commonly used in Marketing


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DISRUPTIVE

INNOVATIO


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What is it ?

An innovation that creates new market y apa di!erent set of values" which ultimatelyovertakes an e#isting market

Source: Paap, J., & Katz, R. (2004). Anticipating disruptive innovation. Researc !ecno"og# $an


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DISRUPTIVEINNOVATION

$he term was de%ned and phenomenon winitially analy&ed y Clayton M.Christensen (A )S scholar and teacher*eginning in 199+

$he concept of disruptiveinnovation was given in his %rstook" !The inno"ator#sDile$$a%+

Source: *ristensen, *. (20). !e innovator+s di"e%%a: en ne

tecno"ogies cause great -ir%s to -ai". arvard /usiness Revie Press.


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Theory $erm introduced y" Clayton M. Christensen

,-enerally" disruptive innovations were technologicallystraightforward" consisting of o!.the.shelf components putin a product architecture that was often simpler than prior

approaches+ $hey o!ered less of what customers in estalimarkets wanted and so could rarely e initially employed to!ered a di!erent package of attriutes valued only in emmarkets remote from" and unimportant to" the mainstream


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Want to see an e&a$'


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-loal provider of streaming movies / $0.Seri

Started as D0D.y.mail service in America" in

Introduced online streaming in 4556

7#panded to Canada in 4515

8ow" serving over 125 Countries" including9akistan

What is Net(i& ?


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It actually dented the D0D rental stores Most ma:orly it disrupted ;lockuster


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$hey started as D0D Rental Store $hey started o!ering millions of content online for as

low as ?2@month

Suscriers can also order D0D Online for theirfavorite shows and movies

$hey also o!er content on 9C"


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All a,o*t N*$,ers -


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0ideo aout 8umers


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Its usiness model was once held as a ma:or new.economy company with a unique digital usinessmodel" y fully incorporating the internet into itsoperations

$ook advantage of weaknesses of the ;lockusterusiness y removing the physical D0D constraint

It e#panded it to various countries" where aslockuster remained in )S and a few other countries

Net(i& *siness Mo)el


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Ne&t in or)er o/,*siness

9artnering with various otels chains" like Marriot sothere customers can have 8et=i# in their hotel rooms

$o date it stands out as the world leader in on.demandentertainment with more than 155 million hours ofmedia

Its ma:or competitors are ulu / Ama&on 9rime


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It also 'ro$otes itsel/ thro*0hitty a)s


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2lo,al E&'ansion O"er The 3ears 4515 B Canada 4511 B


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Streaming Jorldwide Ad


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NET45I6 in Pa7istan

8et=i# has also penetrated in 9akistan as well+

A severe threat for D0D stores" roadand service proand $0 cale networks

$he e#press triune has covered the news ,$elevision8et=i# comes to 9akistanK


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Re/eren+es

Christensen, C. (2013). The innovator's dilemma: when newtechnologies cause great rms to !ail. "arvard #usiness $eview%ress.

%aa&, ., at*, $. (200+). ntici&ating disru&tiveinnovation. $esearch Technolog- anagement, +/(), 13.

htt&:triune.com.&stor-1023245net6i78in8&aistan

htt&:triune.com.&stor-51294*inda8haag8to8e8the8rst8 &aistani8lm8on8net6i7

htt&:www.&aistantelegra&h.cominde7.&h&sid2313314/


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netflix - disruptive innovation

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