During 2015, Netflix and Amazon were battling for leadership in the video streaming markets of North America and Europe. Both offered a fixed-price subscription, the main difference being that Amazon Prime’s annual subscription bundled video streaming of movies and TV shows with the free delivery of goods from amazon.com. Netflix’s apprehension about Amazon stemmed from Amazon’s huge revenue stream (16 times that of Netflix), its willingness to diversify into related businesses (Amazon supplied its own hardware for viewing video, the Kindle Fire, and was producing its own original video content) and its willingness to endure losses in the quest for market leadership through aggressive price cutting.

How might Netflix use the competitor analysis framework to predict Amazon’s competitive strategy in the market for streamed video content?

Answer rating: 100% (QA)

Competitor analysis is the analysis of the strengths and weaknesses of the competitors for identifyi... View the full answer