• Title/Summary/Keyword: Differentiation of Market Strategy

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Pricing Strategy within the U.S. Streaming Services Market: A Focus on Netflix's Price Plans

  • Kweon, Heaji J;Kweon, Sang Hee
    • International Journal of Contents
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    • v.17 no.2
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    • pp.1-8
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    • 2021
  • Online streaming wars are intensifying. Netflix is known as the market leader in the streaming business. However, since 2019, Netflix has been losing subscribers in the United States and is at a turning point where it needs to reassess its current position in the market. While Netflix is losing dominance, rivals Amazon Prime and Hulu continue to gain market shares. Studies from Deloitte and PricewaterhouseCoopers indicated a new shift in the streaming landscape caused by the abundance of streaming options and rising subscription costs. Recent surveys showed that consumers are excited about new streaming services, such as Disney +. Nearly two-thirds of consumers intend to terminate or downgrade one or more of their current subscriptions to make room for a new service. Moreover, it seems that consumers want ad-supported options. In Deloitte's latest Digital Media Trends survey, 65% responded that they would watch ads to eliminate or reduce subscription costs. Seventy percent of Hulu's subscribers choose its lower-priced ad-supported plan. NBC recently launched its own streaming service, Peacock, with a free ad-supported option. This opposes Netflix's brand identity of "no ads" and premium differentiation. With increasing pressure from competition and the growing risk of subscriber loss, Netflix needs to diversify its price plans. The company could try implementing the lower-priced mobile-only plan they are currently testing or plan to test in other regions. Netflix should also consider features or benefits for loyal subscribers to maintain a stronger consumer base.

The Effects of Innovator's DNA on the Innovative Strategy in SMEs (중소기업 경영자의 혁신DNA와 혁신전략에 관한 연구)

  • Kim, Seung Ho;Bae, Seung Hyun;Jun, In;Park, Jong Ho;Son, Kang Ho
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.9 no.6
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    • pp.199-212
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    • 2014
  • Recently, there are increasing to the interest in the organizational innovation DNA as the innovation origin and these interest mainly were approached through the case analysis of global innovative companies. The purpose of study is to investigate the applicability under the CEO of SMEs settings as global companies' cases. The research focused on the impact of innovator's DNA on innovative strategy by the empirical study that analyzed from 110 firm's data in Daegu and Gyeongbuk region. The results of empirical study, innovator's DNA has positive effects on the overall innovative strategy, especially the effects of discovery DNA are stronger than operational DNA. Included to the discovery DNA effects, operational DNA bring about negative on the product differentiation, though it has positive on the market differentiation. In terms of components of innovator's DNA, the questioning and association have strong impacts on the overall innovative strategy, and analyzing has positive on market differentiation, but specific task implementation has negative on the product differentiation. The results suggest that the logic of global innovation case is possible to the SME's CEO and need to learning efforts to promote discovery DNA for successful innovation.

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Fostering direction of the Ornamental Fish Industry in Korea through a competitive analysis of International Ornamental Fish Industry (세계 관상어산업의 경쟁력 분석을 통한 우리나라 관상어산업의 육성 방향)

  • Kim, Dae-Young
    • The Journal of Fisheries Business Administration
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    • v.46 no.1
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    • pp.15-28
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    • 2015
  • This research examined a task to foster into the export industry, through analyzing the competitiveness of the ornamental fish industry and identifying the position of Korea's ornamental industry in the world. Ornamental fish in Korea holds the world's leading aquaculture technology, but products are limited to a few species, lacking competitive products. In the case of aquarium supplies, the Korean technology level is receiving relatively positive marks in the global market, but ornamental fish products are lagging behind the global trend. In other words, Korea's ornamental fish industry has the overall technical foundation, but lacks differentiation in the global market. Meanwhile, Korea's market share of world trade market in fishery products is minimal. Growth was also analyzed not high compared to other countries. Various trade competitiveness index results rated very low in competitiveness, but it is hard to compare Korea with other countries which have already built a strong foundation in the ornamental fish industry. Therefore, for the mid to long term Korea should adapt a "Choice and concentration" strategy and focus on the production of ornamental fish and aquarium supplies, which will enable Korea to become differentiated in the global market and capture the world exports.

A Study of Home-furnishing Products Strategy through the Consumption Tendency Analysis of Single Household (1인 가구의 소비성향 분석을 통한 홈퍼니싱 제품전략 연구)

  • Kim, Taesun
    • Journal of the Korea Furniture Society
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    • v.27 no.3
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    • pp.237-245
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    • 2016
  • Single households currently account for 26.5% of all households and their number is expected to continue to rise, reaching 34.5% by 2035. An analysis of the consumption trends and needs of single households shows that they are rising as a new consumer group with a focus on investment on the individual and favouring: small but high-tech products: efficient use of limited resources: safety and peace of mind: self-improvement and leisure. Products which meet such demands are having an impact on the growth of home-furnishing market. An analysis of companies in Korea's home-furnishing market, with examples like the lifestyle company IKEA, shows a variety of brands such as SPA brand, furniture specialist, distributor and character products. And yet most are OEM products which lack differentiated product lines and compete with similar display and distribution structure. We needs the Single household consumption tendency of home-furnishing market and differentiation strategy through product analysis. In order to increase the value of companies in the home-furnishing market, in addition to differentiated design, product competitiveness must aspire to higher customer satisfaction with easy assembly, innovation in logistics, innovative sales methods such as virtual-reality simulation for products and space, individually-tailored furniture for the needs of single household and products which combine smart technology. For home-grown home-furnishing brands to have competitiveness, they must leverage on the strengths of the industry, offering differentiated and competitive products in a wider range of areas with convergence functions as well as differentiation in consumer interface and application of advancing technology; in-depth product research is called for.

A Study on the Born Global Venture Corporation's Characteristics and Performance ('본글로벌(born global)전략'을 추구하는 벤처기업의 특성과 성과에 관한 연구)

  • Kim, Hyung-Jun;Jung, Duk-Hwa
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.3
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    • pp.39-59
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    • 2007
  • The international involvement of a firm has been described as a gradual development process "a process in which the enterprise gradually increases its international involvement in many studies. This process evolves in the interplay between the development of knowledge about foreign markets and operations on one hand and increasing commitment of resources to foreign markets on the other." On the basis of Uppsala internationalization model, many studies strengthen strong theoretical and empirical support. According to the predictions of the classic stages theory, the internationalization process of firms have been recognized and characterized gradual evolution to foreign markets, so called stage theory: indirect & direct export, strategic alliance and foreign direct investment. However, termed "international new ventures" (McDougall, Shane, and Oviatt 1994), "born globals" (Knight 1997; Knight and Cavusgil 1996; Madsen and Servais 1997), "instant internationals" (Preece, Miles, and Baetz 1999), or "global startups" (Oviatt and McDougall 1994) have been used and come into spotlight in internationalization study of technology intensity venture companies. Recent researches focused on venture company have suggested the phenomenons of 'born global' firms as a contradiction to the stages theory. Especially the article by Oviatt and McDougall threw the spotlight on international entrepreneurs, on international new ventures, and on their importance in the globalising world economy. Since venture companies have, by definition. lack of economies of scale, lack of resources (financial and knowledge), and aversion to risk taking, they have a difficulty in expanding their market to abroad and pursue internalization gradually and step by step. However many venture companies have pursued 'Born Global Strategy', which is different from process strategy, because corporate's environment has been rapidly changing to globalization. The existing studies investigate that (1) why the ventures enter into overseas market in those early stage, even in infancy, (2) what make the different international strategy among ventures and the born global strategy is better to the infant ventures. However, as for venture's performance(growth and profitability), the existing results do not correspond each other. They also, don't include marketing strategy (differentiation, low price, market breadth and market pioneer) that is important factors in studying of BGV's performance. In this paper I aim to delineate the appearance of international new ventures and the phenomenons of venture companies' internationalization strategy. In order to verify research problems, I develop a resource-based model and marketing strategies for analyzing the effects of the born global venture firms. In this paper, I suggested 3 research problems. First, do the korean venture companies take some advantages in the aspects of corporate's performances (growth, profitability and overall market performances) when they pursue internationalization from inception? Second, do the korean BGV have firm specific assets (foreign experiences, foreign orientation, organizational absorptive capacity)? Third, What are the marketing strategies of korean BGV and is it different from others? Under these problems, I test then (1) whether the BGV that a firm started its internationalization activity almost from inception, has more intangible resources(foreign experience of corporate members, foreign orientation, technological competences and absorptive capacity) than any other venture firms(Non_BGV) and (2) also whether the BGV's marketing strategies-differentiation, low price, market diversification and preemption strategy are different from Non_BGV. Above all, the main purpose of this research is that results achieved by BGV are indeed better than those obtained by Non_BGV firms with respect to firm's growth rate and efficiency. To do this research, I surveyed venture companies located in Seoul and Deajeon in Korea during November to December, 2005. I gather the data from 200 venture companies and then selected 84 samples, which have been founded during 1999${\sim}$2000. To compare BGV's characteristics with those of Non_BGV, I also had to classify BGV by export intensity over 50% among five or six aged venture firms. Many other researches tried to classify BGV and Non_BGV, but there were various criterion as many as researchers studied on this topic. Some of them use time gap, which is time difference of establishment and it's first internationalization experience and others use export intensity, ration of export sales amount divided by total sales amount. Although using a mixed criterion of prior research in my case, I do think this kinds of criterion is subjective and arbitrary rather than objective, so I do mention my research has some critical limitation in the classification of BGV and Non_BGV. The first purpose of research is the test of difference of performance between BGV and Non_BGV. As a result of t-test, the research show that there are statistically efficient difference not only in the growth rate (sales growth rate compared to competitors and 3 years averaged sales growth rate) but also in general market performance of BGV. But in case of profitability performance, the hypothesis that is BGV is more profit (return on investment(ROI) compared to competitors and 3 years averaged ROI) than Non-BGV was not supported. From these results, this paper concludes that BGV grows rapidly and gets a high market performance (in aspect of market share and customer loyalty) but there is no profitability difference between BGV and Non_BGV. The second result is that BGV have more absorptive capacity especially, knowledge competence, and entrepreneur's international experience than Non_BGV. And this paper also found BGV search for product differentiation, exemption strategy and market diversification strategy while Non_BGV search for low price strategy. These results have never been dealt with other existing studies. This research has some limitations. First limitation is concerned about the definition of BGV, as I mentioned above. Conceptually speaking, BGV is defined as company pursue internationalization from inception, but in empirical study, it's very difficult to classify between BGV and Non_BGV. I tried to classify on the basis of time difference and export intensity, this criterions are so subjective and arbitrary that the results are not robust if the criterion were changed. Second limitation is concerned about sample used in this research. I surveyed venture companies just located in Seoul and Daejeon and also use only 84 samples which more or less provoke sample bias problem and generalization of results. I think the more following studies that focus on ventures located in other region, the better to verify the results of this paper.

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Imitation as a Viable Strategy: The Case of Ediya in Korean Coffee Franchise Industry (모방전략의 유용성에 관한 연구: 이디야 사례)

  • Choi, Jin-Ah
    • Journal of Distribution Science
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    • v.15 no.6
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    • pp.47-56
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    • 2017
  • Purpose - The purpose of this study is to examine the viability of imitation strategy. Imitation strategy is one of the strategic options that a late mover can choose, and by selecting the strategy, the company imitates key elements of the business model of first movers, and modifies them to suit its conditions. The author attempted to explain how the elements of first mover's business models were creatively adapted to suit the conditions of late movers so that they can secure market position face-to-face market leaders. Research design, data, and methodology - For the purpose of the study, Korean coffee franchise industry was selected to compare the strategies of first and late movers and to discuss imitation strategy in detail. The author conducted in-depth case study of first mover and business model innovator Starbucks and Ediya Coffee, one of their imitators. The paper examines how Ediya has imitated and modified the business model of Starbucks to secure its unique competitive position in domestic market by using value chain and generic strategy analysis. Results - Starbucks and Ediya were compared in terms of their interior design, the price level of beverages, the variety of side dishes, and shop locations. Starbucks have invested interior design heavily to shops, offered diverse beverages and side dishes with relatively high price, the shops are located in central areas, whereas Ediya has concentrated on achieving cost leadership in all value activities as maintaining the quality of key products. Ediya succeeded in achieving best-provider strategy, in which it enjoys both cost leadership and differentiation advantages, largely by the strategic alliance with the biggest coffee manufacturer, Dongsuh Foods in Korea. Conclusions - Though Ediya is the imitator of Starbucks, it has modified Starbucks business models and succeeded in providing the 'third place' experience for budget-minded customers. Ediya has also succeeded in benefiting its franchisees by lowering costs and simplifying the various tasks of coffee shop management. Due to these factors, Ediya could become one of the largest number shops as the coffee franchise in Korea.

The Influence of SMEs' Innovation Activitiesaccording to Types of Strategy ontheir Perception to the Opening of Economies: The Moderating Effects of External Search and Market Entry Strategy (중소기업의 전략 유형에 따른 혁신활동이 대외개방 인식에 미치는 영향: 외부 지식 탐색 및 시장진입전략의 조절 효과를 중심으로)

  • Lee, Jong-Seon;Park, Ji-Hoon
    • Journal of Technology Innovation
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    • v.21 no.1
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    • pp.199-228
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    • 2013
  • Globalization has been accelerated in today's business environment. In this situation, the opening of economies can be either an opportunity or a treat for small and medium sized enterprises (SMEs) who have limited resources. Especially, managerial perception to the opening of economies carries on significant meaning because managerial perception determines future responses and strategies. Therefore, this study examined which innovation activities are related with SMEs' positive perception to the opening of economies. The activities of innovation are classified by types of generic strategy. Also, this study scrutinized the moderating effects of external search strategy and market entry strategy. In order to test hypotheses, this study analyzed data on Korean manufacturing firms collected in the Korean Innovation Survey (KIS). As a result, SMEs conducting innovation for differentiation strategy perceived the opening of economies positively. Search breadth and search depth moderated this relationship negatively and the first entry strategy moderated this relationship positively.

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The study for the differentiation of transmission and vertical integration of Internet Service Provider over the issue of network neutrality (망 중립성 이슈에서 ISP 사업자의 전송 차등화와 수직계열화에 대한 연구)

  • Lee, Jae-Ho;Byun, Dong-Sik;Kim, Hee-Kyung
    • Korean journal of communication and information
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    • v.62
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    • pp.200-222
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    • 2013
  • A recent argument of network neutrality is converted by the differentiation of transmission and cost adjustment. However, It is raised that this phenomenon caused strategy for vertical integration operator to exclude a competitive operator. This study analyzed a number of instances about differentiation of transmission of ISP and problems of ISP that vertical integration in IX markets. The result of research, differentiation of transmission increased service differentiation about application programs used a best effort network like OTT or Smart TV. But this study was analyzed that a related law was vague for solving this issue. Besides, ISPs that is vertical integrated and commercial operated in an IX market discriminated competitive services, and this phenomenon can be proceeded plainly and orginated in an issue of a related law.

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Rehabilitating and Supporting Strategy for Traditional Market in Changwon (창원지역 재래시장 활성화와 지원방안)

  • Song, Boo-Yong;Kwon, Sung-Oh
    • Journal of Global Scholars of Marketing Science
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    • v.7
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    • pp.25-53
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    • 2001
  • Two of most important industries in Changwon, the distribution industry and the construction industry have been threatened by the recent economic downturn. Rehabilitating plans for traditional markets tend to focus on renovation of facilities rather than on the managerial solution. Traditional market plays vital roles as a social safety net and a source of development of regional economy. Modernization of facilities and differentiation of business areas are two most important issues for the revitalization of the traditional market. Traditional markets should adopt a strategy which can make a difference in characteristics of the market, regional culture, regional industry and consumer behavior of the region. Purposes of this study are: first, to understand characteristics of traditional markets in Changwon, second, to draw implications for administrative and financial supports for traditional markets in Changwon.

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A Study on the Optimazation of the Hotel Room Rate Pricing Policy (호텔 객실가격정책(客室價格政策)의 합리화(合理化)에 관한 연구(硏究))

  • Han, Seung-Yeop
    • Korean Business Review
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    • v.6
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    • pp.135-152
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    • 1993
  • The optional market segmentation pricing policy for rooms of hotels are investigated under the assumption of a linear demand function, and for four different situations: (1) single price market, (2) optimal segmentation of the unused capacity of a single-price-maeket, (3) optimal segmantation for all rooms, and (4) opimal segmentation for infiltration from higher priced to adjacent lower priced segments. The purpose of tis study is th show that with proper pricing policy, it would be possible to increase profits considerably. Such a profit increase might be achived by market segmentation coupled with product differentiation, where the different market segments are identified, sperated, and in each segment a different price per room is called for. The different prices are determined based on the specific price elasticity typical for each market segment and the relavant costs. The pricing model implied in this study is based on basic economic pricing theory and optimization techniques. While somewhat complex in its mathmatical solution, it can be easily programmed for use by practitioners, avoiding the need to cope with the technical aspects of the solution. In section II-1, the optimal single-market Single-price policy is evaluated. The optimal strategy under the constraint that only the previously unutilized rooms are segmented is analysed in section II-2, while the optimal strategy without this constraint is determined in section II-3. In section II-4, the optimal market-segmentation pricing policy is derived for the case in which market seperation is allowed for all the rooms under the assumption of custtomer infiltration from each market segment to the adjacent lower priced segment Finally, some considerations relating to the practicality of the model as a decision support tool and the requirements for its implementation are discussed in section III.

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