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Netflix versus the big boys
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Netflix has long been a good example of finding the weakness in the competitor's strength. They have leveraged the power of the web with a centralized inventory and a partnership with the post office.
You really have to hand it to Netflix. Every time some new (big) entrant enters the market and prognosticators insist that Netflix is going down, the company has managed to keep on chugging along -- while the competitors eventually capitulate.
Wal-mart tried to copy the Netflix model, turned it over to Netflix, and then dropped it entirely. Now Amazon has abandoned their Netflix-like service too.
The best competitive strategy is to leverage your distinctive competence while undermining your competitor's strength.
BlockBuster May Do It
I used to be a NF fan, until too many DVD's were sent with scratches and I had to stop a film, return it in the mail, and wait a few days for the replacement. At that time, the "moment" was gone for the film.
I have since become a raving fan for BlockBuster's service.
1) I can get up to three DVD's in the mail
2) If a DVD is damaged I can WALK to my local BB and get a replacement. NF can't do this.
3) When I'm finished I can return the DVD either in the mail OR go to my local BB location AND GET A FREE IN STORE DVD as well as the next DVD on my "que". NF can't do this.
4) Each month I get two free DVD's from the store (in addition to anything else) via online coupons that I redeem in the store.
I also read that BB operationally is better at turnaround times AND that their DVD "pouch" for sending and returning results in lower postage costs that NF can't meet because of a design flaw in their pouches.
NF is over for me.
Best,
Shaun Dakin
CEO
StopPoliticalCalls.org
And a PM alumni!!!