1) Read history of Netflix (http://en.wikipedia.org/wiki/Netflix) and see how many of the above entry level and growth strategies has the firm applied over time.
2) Evaluate your firm in terms of:
- Saleability- why will customers buy from the firm- value proposition, unique selling point (USP), revenue model (who pays when)?
- Profitability- how will competition affect profitability- (competitive advantage & competitive environment)?
- Scalablity- will the model scale enough so that bigger they get more profitable they will get- brand effect, network effect on the revenue side and scale economies on the cost side?
- Sustainability- is their model is difficult to copy and will competition stay low and profitability will continue (rarity, inimitability, organizational development and team)
- Is the model adaptable to different economic and market environment and to different parts of the world?
Sample Solution