Briefly summarize how the move will fundamentally shift the playing field to the company’s advantage and beat the competition.

Game-Winning Moves

Our focus this week is on choosing a strategic direction that will set your organization apart from competitors in a way that enables you to stand out from everyone else. Jack refers to this as “changing the game.” Sherman refers to it as “breaking away from the pack” (Chapter 11).

  • Using the company you selected for your course project, identify a potential game-changing move that you believe will create a sustainable competitive advantage. This move should derive from one of the seven common moves first introduced in last week’s lecture notes.
  • This potential move should represent a possible new move the company should consider for creating even more competitive differentiation. In other words, it should not be a specific move that the company has or is currently implementing.
  • Briefly summarize how the move will fundamentally shift the playing field to the company’s advantage and beat the competition.
  • Explain which of the four positioning categories described by Sherman (Breakaway, Reverse Positioning, Blue Ocean or Disruptive Innovation) best describes the move, and why.

Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates’ initial posts by Sunday, midnight of your time zone.​

Ist person to respond to is

Chad

Hello Dr. G. and Class,

Using the company you selected for your course project, identify a potential game-changing move that you believe will create a sustainable competitive advantage.  This move should derive from one of the seven common moves first introduced in last week’s lecture notes.

My potential game-changing move that I believe will create a sustainable competitive advantage is a combination of Moving Into Adjacent Product Segments and New Distribution Channels (JWI, 1).  My idea is for Netflix to expand into an adjacent product group and leverage its existing strong brand connection with customers while uncovering a new distribution channel that can gain access to new markets without significantly disrupting its core business and current function (JWI, 1).  This will be done by offering a complimentary secondary service called “SweatFlix” which is an add-on service for $4.99 per month that offers an expansion into the home workout arena featuring a variety of exclusive workout programs created and curated by some of Netflix’s biggest stars.

This potential move should represent a possible new move the company should consider for creating even more competitive differentiation.  In other words, it should not be a specific move that the company has or is currently implementing.

When evaluating this strategic option one of the questions our lecture notes ask is, “is it big” (JWI, 2)?  According to the Business Research Company, the global online virtual fitness industry is expected to grow from “$11.39 billion in 2021 to $16.15 billion in 2022 at a compound annual growth (CAGR) of 41.84%” (3).  Another question that should be asked is, “is it time”?  With exponential growth from 2021 to 2022 as indicated in the article, now is the time to join the wave of online virtual fitness momentum caused by the COVID-19 pandemic (3).  The third question to ask is, “is it us”?  While fitness is a new foray for Netflix, by utilizing existing Netflix stars to work with trainers to create exclusive fitness programs is a way to leverage existing relationships and branding by offering it a reduced rate for existing Netflix subscribers and playing off of the branding aspect.

Briefly summarize how the move will fundamentally shift the playing field to the company’s advantage and beat the competition.

Our lecture notes stress that endless deliberation is not an option and that strategic decisions involve risk (1).  The video streaming market is highly competitive, but no major streaming application has combined its entertainment offerings with a virtual fitness component.  Amazon leverages its existing products and services base to lure viewers to its streaming platform.  Netflix has brand recognition and is an industry trailblazer that can create a whole new market segment and revenue stream, one that is growing exponentially (BRC, 3).

Explain which of the four positioning categories described by Sherman (Breakaway, Reverse Positioning, Blue Ocean or Disruptive Innovation) best describes the move, and why.

I would argue that this strategy would fall into Sherman’s Breakout Positioning option (specifically the breakaway positioning).  I would suggest this breakaway positioning option because it redefines how customers see Netflix by borrowing features from an already expansive virtual fitness market (4).  It is a way to “imbue” Netflix’s offerings with “products and attributes are never before seen, thereby creating a uniquely appealing and sharply differentiated customer value proposition” (Sherman, 4).  By combining its already significant user base, Netflix can attract new customers and new revenue streams by offering a lower-tiered combination pricing of Netflix and Sweatflix at an additional $4.99 per month or by offering Sweatflix on its own for $8.99 per month.  I have chosen the $8.99 stand-alone per month price point as it is slightly cheaper than some of the other popular virtual fitness applications such as Beachbody and Centr Fit, which retail around $120 to $150 CAD per year (about $10 to $15 per month from personal experience).  It is important to consider pricing in this strategy to combine two successful platforms and leverage Netflix’s significant brand recognition.

Regards,

Chad

Source List:

  1. JWI 540.  2022.  Week Six Lecture Notes.
  2. JWI 540.  2022.  Week Seven Lecture Notes.
  3. The Business Research Company.  2022.  Online Virtual Fitness Market.  https://www.globenewswire.com/en/news-release/2022/03/22/2407884/0/en/The-Online-Virtual-Fitness-Market-Is-Expected-To-Reach-79-Billion-By-2026-With-The-Rising-Penetration-Of-Smart-Devices-As-Per-The-Business-Research-Company-s-Online-Virtual-Fitness.html#:~:text=The%20global%20online%2Fvirtual%20fitness%20market%20size%20is%20expected%20to,(CAGR)%20of%2041.84%25.
  4. Leonard Sherman.  2017.  If You’re in a Dogfight, Become a Cat!

2nd person to respond is

Anthony