Sunday, February 28, 2010

Models and Concepts

The company I have selected as a good “role” model of ebusiness is Netflix. Netflix has “more than 11 million subscribers and is the world’s largest subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail” (

What makes Netflix stellar is the fact that they have single handedly destroyed the traditional way of renting movies. Blockbuster has already adopted an online rental service and is looking to close their stores. What made renting from Blockbuster annoying was the fact that you could only have the movie for a limited number of days and if you had it longer you had to pay a late fee. With Netflix, not only do you just pay a fixed amount at the beginning of each month but you also have no late fees! A new feature Netflix recently launched was the ability to stream movies and TV episodes from Netflix right to member’s TVs through the Xbox 360, Playstation 3, and the Nintendo Wii.

The strengths Netflix has as an ebusiness is that it comes equipped with a recommendation system that suggests movies based on your ratings. It easily discovers movies that you may not have watched and recommends them to you. Another strength Netflix has is that it offers customers the ability to choose how many DVDs they want delivered and for a different price. Furthermore, whichever subscription method you choose, you have the opportunity to watch an unlimited number of movies each month for that price.

The limitations Netflix has as an ebusiness is that since they don’t have an actual physical store front, customers send their movies back in the mail, and the problem with this is that the postal service is sometimes very slow, and sometimes the DVD might get damaged in transit and therefore Netflix has to replace it.

Some improvements Netflix could look to make is offering customers the choice to rent HD movies, without having to pay extra. Another improvement would be to change their current website into more of a social network where they can build friends and recommend movies to each other, sort of like a Facebook for Netflix. I wouldn’t suggest too many improvements but I would warn them to watch out for more online movie streaming sources as that is becoming more and more popular these days,

There are several essential qualities of a successful ebusiness, and those are its ability to ship products to its customers in an efficient manner, a secure connection so that customers can purchase items through the website and not have to worry about security. Also, the ability to adapt to the ongoing changes that occur on the Internet, and have a long term strategy for continued success. Furthermore, with the current trend of Web 2.0, a successful ebusiness would give customers the ability to interact with the website.

~Until Next Time~


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