Case Assignment 2 Netflix and the video streaming industry BUSA 4131 Fall 2015 Read the Netflix case and answer the following questions. A good answer accurately applies concepts from the text and class discussion to the facts in the case. It incorporates specific terminology (underlined recommended) in the appropriate context and explicitly links the concept with specific evidence from the case. All students should provide a written answer to each question. This is an individual assignment turned in on Folio. All written assignments are subject to an academic integrity audit from Turnit-in. In addition to the individual written assignment, teams will be given the opportunity to present their perspective and lead the class discussion on specific questions. For case assignment 2 teams are assigned as follows Team 5 6 7 1 2 3 Question(all teams include the information gathered for Q1 in your answers) 2 3. Rivalry among existing competitors 3. Power of buyers and suppliers 3. Threat of new entrants and substitutes 4 and 5 6 1. Video streaming is a dynamic industry. The Netflix case is a few years old and the industry has continued to evolve. Begin this assignment by finding at least 3 separate news items from credible sources that inform the current state of the industry (Netflix, it's competitors, suppliers, buyers, new entrants, substitutes, complements and PESTEL factors). When completing the questions be sure to state whether you are referencing the time period the case was written or more recent information from your own sources. When you use facts from your own sources please cite them. 2. Which PESTEL factors are most salient for the video streaming industry, be specific in your answer? 3. Identify the relative strength (strong, moderate, or weak) of each of Porter's 5 forces of competition in the video streaming industry. Use the diagram on p. 67, and the checklist on p. 81 of your text as a guide. What can you conclude about the profit potential of the video streaming industry? 4. Does the sixth force - Complements - influence the overall competitive intensity in the video streaming industry? If so, how? 5. What can you say about convergence in this industry (over the past 5-10 years)? 6. Draw a strategic group map for the video streaming industry. Be sure to identify the axes clearly. Given that environmental forces (PESTEL) and Porter's five forces of competition may affect strategic groups differently, what (if anything) does the strategic group map suggest about Netflix prospects in the video streaming industry? If you drew another strategic group map with different axes, might your map look different? Would you draw different conclusions