Financial Analysis of Tui Travel Plc in the Year 2009

Financial analysis Assignment Title-Analysis of the annual report of HUI Travel Plc during the years 2009 amp;2008 INTRODUCTION The main aim of this assignment is to analyse the Annual report and Financial accounts of TUI Travel PLC and to compare the companies overall performance with its competitors (Thomas Cook Plc) of the years 2009and 2008 using the process called Ratio Analysis. Ratio analysis acts as powerful tool in analysing and interpreting the financial statements of a company. Ratios help as to find the relationship between different items appearing in the financial statements of a company. They are also used in examining various aspects of financial position and performance and are widely used for†¦show more content†¦ROCE is expressed in percentage and as follows: Operating profit /Share Capital+Reserves+Non current liabilities*100 (Atrill, McLaney 2010) For the year 2009 For the year 2008 0.91% - 3.96% (loss) The group has delivered a strong performance despite significant economic headwinds, with underlying profits up to 11% to  £443 million (2008- £398m).The biggest problem faced by the company to attain maximum operating profit is its separately disclosed items . For example TUI paid  £143m to achieve the synergy target set by the management and  £124 million to write down Boeing 747 planes handled by its brand Corse air. But the real cause for the company to reach the profit levels was the considerable decrease in the long term liabilities of the company. A decrease of around  £277m of the long term liabilities in the year 2009 compared to 2008. 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Investigate the impact Buddhism had on Human Rights in...

This essay will investigate the impact that Buddhism had on Human rights in China. Discussion will centre on the history of Buddhism in China and the Cultural Revolution. Considering how Marxist ideology implemented changes to the religion of Buddhism and the social conditions in this country, using politics has the base to build this essay to analyse the impact of communism on religion ,regarding Tibet. The paper will then discus the post communist society up until the present day using human right issues in Beijing and how if any changes have being made to implement religious freedom and democracy in China in the present era. To introduce this subject consideration will first be given to the history of Buddhism and how this impacted on†¦show more content†¦Adolph son (2000) Buddhism continued to grow and the pure land Buddhism became the religion of Chinese society. Pure land Buddhism grew in strength under Hui Yan and the immortal concept run through the ritual elements of this religion. The Humanistic approach of Buddhism coincided with Taoism and Confucianism in which the 3 religious philosophies’ became one religious thought of the Chinese people. Chan, (1957) From the 20th century onward modernity played a big part in the religion of China, political agendas and state ideology created their own definitions of religion. The socialist aspect of religion from this time coincided with capitalism, and the economy of china in which modernity plays the central role was part of the process that leads the transition from traditional religion to communism, influenced by Marxist theories. Socialization in the 20th and the 30th century imposed the view of Modernization of socialization on Buddhism and again in the 1980s and 1990s. Ashiwa, (2009) Asad, (2003) cited in Ashiwa, (2009:45) â€Å"suggests that modernity has certain characteristics and is instigated by persons who are wielding subjective power it is usually the powerful elite, bureaucrats and intellectuals who posses the power to influence society† . In regards to communist theory Marxist ideology produced the foundation for the formation of communist elite in China whichShow MoreRelatedWomen Employment in India7222 Words   |  29 Pages(Women employment in China and India) Sunida Singh Expo36@gmail.com 082 WE FORGET TO TAKE A PHOTO TOGETHER ^ ^ TABLE OF CONTENT Introduction3 Gender discrimination4 Global Women Employment6 Women Employment in China†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦11 Women Employment in India14 * Labor force trends amp; legislation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 * Management†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..16 * Changing Work Place†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 Successful case to promote women employment AVON China, the company for women†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreHrm Best Practices and Transfers to the Asia-Pacific Region8056 Words   |  33 Pages Approaching the second decade of the 21st century provides a fresh opportunity to think about kinds of possible management. 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Nutrition After Joining The Powerlifting Team - 989 Words

I first fell in love with nutrition after joining the powerlifting team in high school. Our team, including myself, would wait until the last minute to lose weight for competitions by running outside wearing garbage bags, starving ourselves the day of weigh-ins, and spitting in water bottles to lose water weight. These extreme dieting strategies took a toll on our overall success at competitions and my personal growth as an athlete. I knew I needed to make a change, starting with my diet. After researching online, I integrated tips for healthy, effective weight loss into my daily routine. I began seeing remarkable changes in my appetite, strength, and mental well-being. Once I realized how powerful of an impact nutrition had on my overall performance, I used my knowledge to integrate healthy changes into my teammate’s diets. As a result, my teammates began to improve as well. While talent was still an important factor, I know our dietary changes guided us to win the state championship. From that point, I knew serving people through nutrition would be my life’s focus. I pursued this newfound passion by majoring in Nutrition and Food Sciences at Louisiana State University (LSU). During freshman year, I began working with Dr. Catherine Champagne at one of the world’s leading nutritional research centers, Pennington Biomedical Research Center. Under Dr. Champagne’s direction, I gained experience in components of nutritional counseling, in-depth dietary research and interpreting

Break Point Essay Research Paper Surfing the free essay sample

Break Point Essay, Research Paper Surfboarding the interrupting moving ridges on Mayport Beach gives a feeling I will neer bury. I was 12 old ages old when my household and I lived on the shore of a little town known as Mayport. Two back-to-back old ages we dwelled in our cosy small beach house watching the glimmer ocean through our Windowss. Everyday I would take the way over the flaxen dunes, dodging the prickly goad and the crisp cati, onto the aureate white beach. I walk toward the shoreline seeking the dirt for any hoarded wealths the sand may keep for me. As I look out, my eyes see nil but the glasslike H2O disturbed merely by moving ridges interrupting on the shore. I drop my board in the cool H2O and get down to paddle out into the eternal ocean. As I approach the breakage point, I duck dive under the cool salty H2O so as non to be pushed back by the force of the on hotfooting moving ridges. We will write a custom essay sample on Break Point Essay Research Paper Surfing the or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I paddle beyond the breakage point and sit on my board patiently waiting for the following moving ridge to pick me up. While waiting I notice porpoises turn overing in and out of the H2O, free as can be. The warm air current brings an olfactory property of salt and a mist of H2O. Waves begin to turn over through the H2O as I lay on my board padd ling forward. Closer and larger they grow until their power and force begins to push me through the water as I lay on my board paddling forward. I feel the force of the wave behind me as I shoot up to my feet, feeling the wax grip my feet. As the waves roars behind me, I duck down low and enter the barrel. Tilting the board forward, I emerge from the tunnel of water and end up a distance away fro the tube. I begin to slow down so I cut my board back to the barrel and throw it forward again, so I am again positioned in front of the pipe. After the wave finally dwindles down in the shallow water I pull my board over the lip to the back of the wave and begin paddling out to face another challenge. As the day begins to wane I ride my last wave and start toward home. Heading up the beach I notice sand crabs scurrying into their holes for safety. I step up onto the dunes and turn around to bask in the ocean’s beauty. The sun sets and the sky glows a pinkish red. The beach is empty as far as the eye can see and the seagulls dance in the crystal clear sky. Hearing the voice of my mother calling for dinner, I begin my journey back thanking God for such a majestic wonderful place.

Negative Effects of Social Media free essay sample

Alyssa Buckley English 1A Negative Effects of Social Media on Its Users Our lives seem to be more and more consumed by technology as great advances in this area have continue to be made, especially when it comes to social media. Many researchers have begun to notice that depending on how much time individuals spend on these social media sites, they can negatively affect their daily lifestyle in very significant ways. For example, social networking has become a huge distraction for students and it can affect their grades depending on how often they check their various accounts while doing class work. Researchers have also come to find out that social media can contribute to the development of psychological symptoms and mood disorders, such as anxiety, depression, narcissism, and addiction. It has also changed the way people manage their relationships and interact with each other. In today’s digital age constant use of social media can have various negative behavioral, psychological, and social effects on its users. What many academics have initially expressed as a major concern is how the use of social media has been affecting student’s behavior in class. Several studies have shown that social media sites, such as Facebook, have become a distraction for students, negatively impacting their studies. The results of these research studies prove that grades for students at different academic levels have been declining since social media came in to existence. Because social media gives users access to everything they need to know about others so quickly, students now expect to learn class lessons at a quicker rate since they now have answers at their fingertips. Social media is a major distraction to students while trying to complete assignments, which ultimately affects their ability to manage their time effectively. The need to feel â€Å"always connected† has come to a point where it takes over lives and can negatively impact important aspects of it, such as earning goods grades in school. Study habits are not the only thing being affected by social media. It also affects classroom learning in the same manner. Students today are either bringing in their tablets, PDAs, laptops, or smart phones to class under the pretext they will be using them to take notes. However it has become evident that they spend a good portion of their time in class checking popular social media sites such as Facebook or Twitter. Social media has made it extremely easy for students to do other things when their attention spans waiver. In his article titled â€Å"Social Media’s Impact on Kids A Mixed Bag†, Dr. Rick Nauert states, â€Å"Facebook can be distracting and can negatively impact learning. Studies found that middle school, high school and college students who checked Facebook at least once during a 15-minute study period got lower grades. As a result, frustration has risen in students due to not understanding what was discussed in class. They quickly ask their instructors for help before looking over class readings or attempting practice questions. In turn teachers are now feeling like they need to be more entertaining with their class lessons in order to keep their students’ attention. This is a sort of domino effect that does not b enefit anyone involved. Students who do not engage in social media usage during class do not escape its negative effects either; watching students on social media sites during class can be a distraction in itself. Because these sites are always available to its users, they engage in excessive use and struggle to keep the amount of time they spend on these sites in check. For a student, being unable to manage your time effectively and keep up good grades can be stressful to the point where it causes anxiety. A study was conducted at Stony Brook University where researchers discovered that anxiety and depression were associated with social networking experiences. Researcher Brian Feinstein and his team concluded that the use of social media can contribute to psychological problems in social interactions, such as self-consciousness and social anxiety. As people use social networking sites more and more, psychological symptoms, such as social anxiety and depression, can begin to develop overtime. Feinstein’s research found that â€Å"depressed individuals also tend to engage in specific interpersonal behaviors, such as excessive reassurance seeking, that account for their greater likelihood of being rejected. †Ã‚   Other social anxiety symptoms that can be triggered from excessive amounts of social networking include becoming less assertive, avoiding conflict, and expressing less emotion. Results from Feinstein’s research also found that users directly felt a â€Å"depressed effect following interactions with romantic partners† and an â€Å"anxious effect following interactions with romantic partners† depending on how much time they spent on social media outside of their relationship. Not only can the amount of time we spend on social networking affect us now, but it can also cause and make an individual more vulnerable to possible psychological problems in the future (Nauert). Feeling down, lonely, and experiencing the loss of â€Å"non-digital† friends were found to be connected with internet use. In 1998, a Carnegie Mellon study proved that more time spent online would increase these negative feelings. This negative digital impact may also not be temporary, as it has the possibility to last for years in the future. Heavy social media use can help develop stress, depression, and suicidal thoughts. A new concept called â€Å"Facebook depression† is currently being discussed in academic circles. Scholars have come to the conclusion that the intensity of the online world triggers depression. The American Academy of Pediatrics has reportedly begun suggesting to doctors that they start including questions on how much their patients use social media during annual checkups to make sure they are using it in healthy amounts (Dokupil). This could help prevent the many possibilities of future psychological or emotional damage that can result in overuse of social media. Addiction to social media sites is becoming more and more common in today’s generation. People who are addicted to social media can show similar brain scan results to drug addicts. Psychologically healthy people are breaking down mentally in new ways from the overuse of social media this addiction to social media is becoming a more serious issue every day. In countries such as China, Taiwan, and Korea, where tens of thousands of people are considered â€Å"addicted,† doctors have already begun to find ways to treat those who use the internet and social media in excess. One instance was recorded in which a young man fatally beat his mother for suggesting him to log off. He then continued to use her credit card to buy more hours to stay online longer. In another incident, one young couple neglected their infant while nourishing a â€Å"virtual baby† online; their infant died. A study conducted by Elias Aboujaoude, a psychiatrist at Stanford University School of Medicine, found that more than one in eight adults showed at least one sign of unhealthy attachment to the internet (Dokupil). Social media has a strange ability to provide a sense of satisfaction in people’s live, but when it comes to actual face to face interaction it can also cause people to act in unhealthy and obsessive ways. Larry Rosen, research psychologist and educator, did a study in which he and his team surveyed 750 participants, ranging from teens to adults who represented the Southern California census. They recorded their detailed technology habits, feelings regarding those habits, and scores on a series of standard tests of psychiatric disorders. The team found that most their subjects checked their social network all the time or every fifteen minutes. Rosen discovered that those who spent more time on these social media sites revealed more compulsive personality traits. The brains of these addicts look similar to those of drug and alcohol addicts, where abnormal white matter (the nerve cells in the brain built for speed) were built up in the areas of attention, control, and overall functions. Another study conducted by Chinese researchers found abnormalities in gray matter structure (a major component of the central nervous system), resulting in shrinkage of ten to twenty percent in the area of the brain accountable for handling vital functions such as speech, memory, motor control, emotion, and sensory (Dokupil). Social media has also contributed to a rise in narcissism amongst its users. It is common that what a user presents in their social media profiles is not the truth. People who use social media sites such as Facbook or Instagram often create a digital persona that does not reflect reality. It is an image created for the sole intention to project the way a user wants other people to see them. Maintaining this image can be mentally draining. Each â€Å"like†, each favorite song, each bit of personal information that is shared no matter how minute it might be, weighs heavily on the minds of the user. It is because of this that users tend to become obsessed over their digital selves. This trait can easily be linked to narcissism. Some users of socials media share every little detail about themselves because they believe that others are interested in what they are doing or how they think, however this image is a flawed representation of themselves as users tend to only post images or updates that are positive, exciting, and intriguing. â€Å"Just as people select the most attractive photos of themselves to use as profile pictures, they tend to populate their newsfeeds with the most attractive bits of news about themselves† (Firestone). This type of behavior can be consuming as users tend to be over engaged in their online life. In her book, â€Å"Alone Together†, author Sherry Turkle explores what she refers to as â€Å"presentation anxiety†. High school students were interviewed about their social media usage and how they present themselves online. Many of the students said they spent many hours constantly updating their profiles and deciding what to share. Social media has become an outlet for people who have previously shown symptoms of narcissism which in turn amplifies them. It has also affected people who have shown no signs but now find themselves constantly worrying about their online image. In the world of Facebook, Brad says, â€Å"your minute movie preferences matter. And what groups you join. Are they the right ones? † Everything is a token, a marker for who you are: When you have to represent yourself on Facebook to convey to anyone who doesn’t know you what and who you are, it leads to a kind of obsession about minute details about yourself† (Turkle, pg. 168). Ironically, social media has had a detrimental effect on face to face social interactions. Sherry Turkle explains her perspective on how social media has negatively impacted our lives socially in her article â€Å"The Flight From Conversation.    With technology advancing so quickly, we are now able to be with whoever we want, whenever we want, and it is just a click away. By using this technology, Turkle also points out that we can control the distance of multiple relationships, to the point where it is â€Å"not too close, not too far, just right†. With today’s generation, more and more social media users have come to the conclusion that human relationships can become cluttered and demanding, however they can now clean them up with technology. In-person conversations require a person to see things from another’s point of view; it requires patience and the ability to stay focused in order to listen to what the other person has to say. However, as we increase the amount of online connections we hold, we start to expect faster answers and ask simpler questions. We are now â€Å"dumbing down† our communication skills. Turkle believes as a result of this, people will stop caring and forget the valuable differences between online interaction and face-to-face interaction overtime. In addition, Turkle also argues that the social media myth of reducing loneliness by having a constant connection is false. Many users feel the need to express their feelings online because they feel as if no one is listening to them in the â€Å"real world†. With the vast amount of people that are online, they automatically feel that they are being heard when in fact they may not be at all. This temporarily relieves their feeling of loneliness however, when a user logs off, the feeling of loneliness will eventually creep up again. When people are alone, they feel he need to reach for a device where they can connect to social media sites to reach others. This type of connection is more like a symptom of addiction, not a cure for loneliness. Turkle sums up this negative social media effect by explaining, â€Å"If we don’t teach our children to be alone, they will know only how to be lonely†. It is a fact; there is no escaping the digital age. It is changing just a bout every aspect of our lives. It seems like we are constantly connected to technology whether we want to be or not. Data and personal information are shared in a blink of an eye with thousands to millions of people. Most of this information will live online forever which is a bit of a scary thought. When someone sends a message, posts a comment, or shares personal information, I now believe that it is important to analyze it to gain insight on possible underlying problems. Through the course of my research I was a bit shocked by the initial findings of some the studies that have been conducted on social media usage. From affecting student’s grades to exacerbating narcissism to creating addiction like symptoms in some people, social media has very serious side effects that must be researched further in order to identify and treat early. Social media is definitely not all bad however. There are many benefits from the advancements that are being discovered in the digital age. Staying connected with friends, finding information, and new mediums of learning have all been beneficial to society. I believe the problems that are now being discovered from social media usage can be kept in check by educating users about the dangers of social media. It is important that the medical community begin to recognize these recent research findings on the negative effects of social media, and internet usage in general, as a serious medical health problem in today’s society. Works Cited Feinstein, Brian, Vickie Bhatia, Rachel Hershenberg, and Joanne Davila. † Another Venue For Problematic Interpersonal Behavior: The Effects of Depressive and Anxious Symptoms on Social Networking Experiences. † Journal of Science and Clinical Psychology. 11. 4 (2012): 356-382. Print. Firestone, Lisa . Is Social Media to Blame for the Rise in Narcissism?. Huffington Post Canada Canadian News Stories, Breaking News, Opinion. 15 Oct 2012. Web. 10 Apr 2013.

How to Choose the Right Examples of Uc Essay Samples

How to Choose the Right Examples of Uc Essay SamplesFor a lot of high school and college students, Uc Essay samples can be a major factor in getting through college or even to get into a four-year university. While they may not always be as flashy as your thesis, there are still many important reasons why a student needs to obtain a solid essay. Therefore, just because you don't get the top grades on a test doesn't mean that you are failing. Most likely, the grade is a result of the way you prepare for the assignment and what your professor asks you to do during the class.Students who believe that they can just write something and get an A on a Uc Essay should think again. As long as the course or project being given to you is worth your time, then it's alright to make it more difficult for yourself than necessary. There are some ways to ensure that you may get the essay that you need, but it will take some work. Make sure that you have the proper information needed before you begin to look for examples of the kind of essay you'll be doing.The first thing that you need to think about is how much you actually like to write. Whether you really like writing or not is probably a question that you want to ask yourself first. If you find that you like to write and that you've never considered trying to write an essay, then it might be a bit too hard. Keep in mind that the process of learning how to write is going to take time. You should not rush into anything and make sure that you spend some time taking breaks from the project at hand and spending more time to learn all about writing.Secondly, you need to ask yourself if you really know how to write. Although there are people who have written countless essays over the years, there are some things that they may have not done, and those things are what you're going to find out when you begin to work on your project. If you have already tried to write an essay but have failed, you will have to rethink your methods. Th e essay is an important part of your education and it doesn't matter how you did it.You can sometimes get tempted to go with the easy way out and choose to use your favorite style or idea over another, but you should make sure that the topic that you're choosing is the appropriate choice. For example, if you want to take the science or math section, then you should make sure that the paper is high quality. On the other hand, if you just want to do an essay about animals or nature, then you should find a topic that you love and write about that.After you have decided on the topic, the next thing that you need to do is to look up the basic details on the topic that you're writing about. This way, you can make sure that the information that you're working with is accurate and current. You also need to know the basics of the topic so that you can know exactly what you need to do in order to get the project finished.Finally, you need to make sure that you understand the grammar and vocab ulary of the subject that you're writing about. An Uc Essay sample needs to have good grammar and word usage. It also needs to be clear and precise, both of which are factors that only you can control. These factors are not easily learned. Therefore, you need to be sure that you understand them before you begin your project.Remember that getting these things done is a result of planning and doing them. You need to do some research and look up samples. You also need to know how to properly construct your essay. The first step is always the hardest, but once you're finished with it, everything else is a piece of cake.

Netflix Strategic Analysis Essay Example

Netflix Strategic Analysis Paper Netflix | Strategic Analysis (Nov 2007)| | Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great variety of film offerings. Now they want to leverage their strengths to enter into the Video on Demand market| | | 9/18/2009| | 1 1 3 3 6 7 Table of Contents 1. Netflix Strategic Analysis 2. Netflix vs. Blockbuster: Comparative assessment of strategic differences 3. Netflix Competitive Advantage 3. 1 Home video industry Positioning Perspective 3. VRIO Perspective 4. Video On Demand (VOD) – Strategic Advantage i 1. Netflix Strategic Analysis Netflix, an online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, with unlimited monthly rentals from a great variety of DVD offerings and personalized service. Netflix created a distinctive value proposition by understanding customer needs and competition offerings; Netflix found the sweet spot to align the firm’s capabilities with the customer needs in a way that competitors could not match them, creating unique activities to deliver to that gap(1). To take the movie rental to the next level, Netflix used the internet instead of rental stores and offered service only to DVD users while rental stores were still renting VHS. The combination of internet and DVD technology made competition irrelevant, by reaching in an untapped market, Netflix expanded existing industry boundaries and reached for the blue ocean(1). Netflix started building their offering from customer’s frustration such as narrow diversity of films and stressful return due dates which implied late fees. Netflix was able to hold large amounts of inventory in their warehouses without having the physical space constringency of a rental store, added convenience of delivery and the unlimited monthly rentals of a subscription model, and using technology for customization and personalization of their service. Leveraging best practices from internet retailers (ebay, Amazon) helped Netflix to identify characteristics that were most appealing to internet customers (2). Understanding what customer valued allow Netflix to strengthen their critical success factors. . Netflix vs. Blockbuster: Comparative assessment of strategic differences. 1 Blockbuster focused their strategy on impulse rental customers, while Netflix focused on customers that desired selection and for which watching movies was a way of entertainment. While Blockbuster business relied on newest release (70% of revenue came from hit movies) (2) they kept a narrow variety of movies and their financial success depended highly in ma ximizing the rental of those hit movies in inventory. We will write a custom essay sample on Netflix Strategic Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Netflix Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Netflix Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer To be able to increase utilization, the movies had a return due date and late fees would be applied if returned after. Netflix business model promoted lower profile films, while working in new relationships with studios to lower cost and quicker access of new releases (only 30% of revenue came from new releases)(2). Netflix continued making deals with movie producers and acquiring movies to enlarge the diversity and size of their DVD library; simultaneously applied the subscription model which allowed customers to reach an unlimited amount of movies per month (keeping three at a time). Blockbuster scope was to expand geographical coverage nationwide, owning most of their stores (80%) and franchising the rest (2). Netflix had a similar geographical goal, creating more distribution centers (inexpensive warehouses) improving upon its national wide coverage and reducing delivery time. Using technology to develop a recommendation system and personalized their service, Netflix had established a strong market position with a large and solid base of subscribers by the time Blockbuster entered the online movie rental business. Blockbuster had the power of high retaliation and leverage from their already established brand and existing products, so they integrated its online model with its traditional store business, eliminating late fees, copying Netflix business model and under-cutting price to gain market share, but still it did not offset their loss of revenue by 2005. 2 Blockbuster was too confident in their brand and their reach that failed to see the threat from the online rental business, meanwhile Netflix took advantage of their slow entrance to build a market and leverage on growing technology (DVD) that took off really quickly. The strategy canvas shown in Figure 1 captures how Netflix’s strategy differs from Blockbuster’s and their areas of differentiation. Netflix shifted their focus to alternative new offerings, building on critical success factors that could not be matched by Blockbuster, even when they entered the online video rental. Figure 1. Strategic canvas of home movie rental 3. Netflix Competitive Advantage 3. 1 Home video industry Positioning Perspective 3 To understand Netflix’s positioning in the home video industry offering of movies in the comfort of the home it is useful to employ Porter’s 5 forces framework to identify the gap they are filling and their strengths and weaknesses. Threat of Entry: To be able to start up a home video business would require a significant investment capital. Although the required capital for infrastructure could be medium to low (open a store and do minimum amount of marketing), it could be expensive for new entrants to invest in movies to create the necessary inventory, especially without relationships with movie studios and producers. Also retaliation could be expected from larger players if the new business poses a threat. For a possible entrant, high differentiation (for example convenience or diversity) would be necessary to be able to succeed. The threat of entry would be considered medium to low, but Netflix saw the opportunity to get into the industry by highly differentiating themselves to be able to compete. Threat of Substitution: Alternatives to the home video industry would be: first, movie theaters, expensive and lack the convenience of watching the movie in the comfort of the house. Second, to watch a movie through commercial television, it takes longer time to be available and is interrupted by commercials. Third, to watch movies through the internet, on the computer; it may be convenient, but not comfortable. Also, a customer always has as an option not to spend their free time watching movies. The substitutes are weak until technology allows for easy, quick and cheap movies to be downloaded through the internet and transfer to the TV. The threat of substitution is low. 4 The power of buyers: The source of dissatisfaction of customers comes from the narrow selection of movies and the rental due dates resulting in late fees. It becomes expensive for those who are volume customers and have to pay large amounts of money. But buyers have low switching cost as there are several options for renting movies, despite this fact, individual customers do not hold bargaining power over the price of products in this market since one customer’s decision to buy the service or not will not affect the overall market at all; similarly one customer’s dissatisfaction will not influence other customers significantly. The level of dissatisfaction with the service would promote a widespread response in the presence of a differentiated product that is more convenient and satisfactory for customers. Netflix â€Å"invested in things that were strategically relevant to customer satisfaction potential† (2) taking advantage of discontent of the underserved customers which increased buyers’ switching cost and decreased the buyer power. The power of supplier: High up-front investment is necessary to be able to acquire films. Without direct relationships with major studios, the industry depended on a small number of movie distributors to acquire the movies with little or no discount increasing the supplier power. Netflix built relationships with major film producers to decrease the up-front cost of new releases by splitting additional revenue; they were able to acquire more movies in a timely manner to satisfy demand. â€Å"As Netflix built its film library, it grew in importance as a distribution channel for many small and independent film studios† †¦ â€Å" Netflix acquired the distribution rights to certain independent films through its Red Envelope Subsidiary†(2). All the actions taken helped Netflix to both decrease the supplier power while increase their movie selection. The mail delivery system had also a major role as Netflix’s supplier. They highly depended on USPS for the success of their model (delivery and return of movies in a timely manner). Netflix took advantage of the declining first class mail industry and strengthen their relationship with USPS, receiving discounts while working on an efficient plan to expedite deliveries and returns and improve customer satisfaction. 5 Rivalry: The home video industry had been highly populated by small and large players with little differentiation offering, basically commodity service in a larger and smaller scale. Blockbuster had been the leader for a long time and smaller â€Å"mom and pops shops† did not present strong competition. The rivalry could be considered medium. As industry grew in a constant pace, more people demanded a wider selection with more convenience; this allowed Netflix to get into the industry with a differentiated product that allowed them to succeed. 3. 2 VRIO Perspective Netflix initial strategic advantage was based on differentiation from using the internet to select the movies, their unlimited monthly movies from the subscription based system with no late fees, the wider inventory of movies and the use of mail for delivery, very different from Blockbuster’s offering. It was a good strategy over the short term, but it only gave Netflix a temporal competitive advantage as anybody could copy what they were doing. To build a sustainable competitive advantage Netflix dedicated a lot of resources to make their offering unique; this helped them to further differentiate themselves. This strategy leveraged the value proposition of convenience and selection by personalizing their offering and building strong relationships between their system and their customers, their intent was to increase customer retention, offering features that customers could not find at any competitor, and that would be too difficult for a competitor to copy. Netflix invested in technology that allowed them to get to know customers using surveys, movie reviews and monitoring rental trends. All this permitted Netflix to give customers accurate recommendation of movies based on customer likes while having a queue of movies that would be shipped to them on priority basis. Using their core strengths and building rarity and difficulty of imitability, as observed in the VRIO analysis in Table 1, Netflix customer data base and personalized offering allowed them to have a sustainable competitive advantage in delivering home video entertainment. 6 Table 1: Netflix critical success factors – VRIO break down | Resources| V| R| I| O| | Physical| | | | | | | Technology| * | * | | * | TCA| Logistics| * | * | | * | TCA| | Geographical reach| * | | | * | | | Wide selection| * | * | * | * | SCA| | Brand| * | * | | * | TCA| | Convenience Easy access| * | * | | * | TCA| | Customer database| * | * | * | * | SCA| Organization| | | | | | | Knowing customer| * | * | * | * | SCA| | Recommendation| * | * | * | * | SCA| | Subscription| * | * | | * | TCA| | No late fees| * | * | | * | TC A| | Relationship with studios| * | * | | * | TCA| Human| | | | | | Team commitment| * | * | * | * | SCA| TCA – Temporary Competitive Advantage (Strength and distinctive competence) SCA – Sustainable competitive Advantage (Strength and sustainable distinctive competence) 4. Video On Demand (VOD) – Strategic Advantage While Netflix â€Å"believed that the DVD rental market would remain healthy for years in the future†(2), they also recognized, just as they did when entering the DVD market, the need to take advantage of the fast pace growing technology and enter the VOD market in its early stages in order to maintain ts superior â€Å"position as a giant in the media industry†(2). Unlike Blockbusters’ response when Netflix first appeared with a product so different from theirs, rather than seeing the new offering as an option that would appeal only to a niche market(2), Netflix acknowledged the VOD offering as a service that would benefit the mass market needs(2). 7 VOD presents two main challenges, the first is the hardware requirements to allow connectivity between the computer and television, adopting streaming offering would allow Netflix to establish in the VOD market while waiting for the technology to develop. The second is â€Å"the current limitations in available content† (2). Adopting the VOD business as a separate service could hurt Netflix’s â€Å"wide selection† image making it difficult to satisfy its wide range of customers. While Netflix must continue pressuring the studios to let them have more available films in VOD, choosing the option of integrating a streaming online video feature in their core offering, would allow them to build on their current differentiation strengths: unlimited monthly rentals from a great variety of movies and personalized service. New customers interested in the VOD offering would also enter in the data base helping further growth of Netflix’s customized and personalized system while taking advantage of their variety of DVD movies still not available through VOD. In the initial stages, both DVD online rental and VOD would complement each other. It would be expected for the streaming online video feature to increase popularity while overcoming the technical challenges of VOD. At the same time, the DVD rental business would be expected to decline. This strategy would help them transition effectively in the market. It will be easier to convert its customer from DVD’s delivered movies to VOD rather than acquiring new customers from scratch. Finally, integrating the current offering with the streaming online video while leveraging from their distinctive competencies, ultimately will give Netflix a sustainable competitive advantage â€Å"to allow for the best home video viewing for its customers† (2). References (1) W. Chan Kim and Renee Mauborgne, â€Å"Blue Ocean Strategy: From Theory to Practice† California Review Management, 2005. (2) 8 8 7 7 Willy Shih, Stephen Kaufman and David Spinola, â€Å"Netflix†, Harvard Business School, November 19, 2007. Netflix Strategic Analysis Essay Example Netflix Strategic Analysis Essay Netflix | Strategic Analysis (Nov 2007)| | Netflix, the online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, customized and personalized service with unlimited monthly rentals from a great variety of film offerings. Now they want to leverage their strengths to enter into the Video on Demand market| | | 9/18/2009| | 1 1 3 3 6 7 Table of Contents 1. Netflix Strategic Analysis 2. Netflix vs. Blockbuster: Comparative assessment of strategic differences 3. Netflix Competitive Advantage 3. 1 Home video industry Positioning Perspective 3. VRIO Perspective 4. Video On Demand (VOD) – Strategic Advantage i 1. Netflix Strategic Analysis Netflix, an online subscription-based DVD rental service aimed to better satisfy customer in a way competitors didn’t, with unlimited monthly rentals from a great variety of DVD offerings and personalized service. Netflix created a distinctive value proposition by understanding customer needs and competition offerings; Netflix found the sweet spot to align the firm’s capabilities with the customer needs in a way that competitors could not match them, creating unique activities to deliver to that gap(1). To take the movie rental to the next level, Netflix used the internet instead of rental stores and offered service only to DVD users while rental stores were still renting VHS. The combination of internet and DVD technology made competition irrelevant, by reaching in an untapped market, Netflix expanded existing industry boundaries and reached for the blue ocean(1). Netflix started building their offering from customer’s frustration such as narrow diversity of films and stressful return due dates which implied late fees. Netflix was able to hold large amounts of inventory in their warehouses without having the physical space constringency of a rental store, added convenience of delivery and the unlimited monthly rentals of a subscription model, and using technology for customization and personalization of their service. Leveraging best practices from internet retailers (ebay, Amazon) helped Netflix to identify characteristics that were most appealing to internet customers (2). Understanding what customer valued allow Netflix to strengthen their critical success factors. . Netflix vs. Blockbuster: Comparative assessment of strategic differences. 1 Blockbuster focused their strategy on impulse rental customers, while Netflix focused on customers that desired selection and for which watching movies was a way of entertainment. While Blockbuster business relied on newest release (70% of revenue came from hit movies) (2) they kept a narrow variety of movies and their financial success depended highly in ma ximizing the rental of those hit movies in inventory. We will write a custom essay sample on Netflix Strategic Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Netflix Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Netflix Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer To be able to increase utilization, the movies had a return due date and late fees would be applied if returned after. Netflix business model promoted lower profile films, while working in new relationships with studios to lower cost and quicker access of new releases (only 30% of revenue came from new releases)(2). Netflix continued making deals with movie producers and acquiring movies to enlarge the diversity and size of their DVD library; simultaneously applied the subscription model which allowed customers to reach an unlimited amount of movies per month (keeping three at a time). Blockbuster scope was to expand geographical coverage nationwide, owning most of their stores (80%) and franchising the rest (2). Netflix had a similar geographical goal, creating more distribution centers (inexpensive warehouses) improving upon its national wide coverage and reducing delivery time. Using technology to develop a recommendation system and personalized their service, Netflix had established a strong market position with a large and solid base of subscribers by the time Blockbuster entered the online movie rental business. Blockbuster had the power of high retaliation and leverage from their already established brand and existing products, so they integrated its online model with its traditional store business, eliminating late fees, copying Netflix business model and under-cutting price to gain market share, but still it did not offset their loss of revenue by 2005. 2 Blockbuster was too confident in their brand and their reach that failed to see the threat from the online rental business, meanwhile Netflix took advantage of their slow entrance to build a market and leverage on growing technology (DVD) that took off really quickly. The strategy canvas shown in Figure 1 captures how Netflix’s strategy differs from Blockbuster’s and their areas of differentiation. Netflix shifted their focus to alternative new offerings, building on critical success factors that could not be matched by Blockbuster, even when they entered the online video rental. Figure 1. Strategic canvas of home movie rental 3. Netflix Competitive Advantage 3. 1 Home video industry Positioning Perspective 3 To understand Netflix’s positioning in the home video industry offering of movies in the comfort of the home it is useful to employ Porter’s 5 forces framework to identify the gap they are filling and their strengths and weaknesses. Threat of Entry: To be able to start up a home video business would require a significant investment capital. Although the required capital for infrastructure could be medium to low (open a store and do minimum amount of marketing), it could be expensive for new entrants to invest in movies to create the necessary inventory, especially without relationships with movie studios and producers. Also retaliation could be expected from larger players if the new business poses a threat. For a possible entrant, high differentiation (for example convenience or diversity) would be necessary to be able to succeed. The threat of entry would be considered medium to low, but Netflix saw the opportunity to get into the industry by highly differentiating themselves to be able to compete. Threat of Substitution: Alternatives to the home video industry would be: first, movie theaters, expensive and lack the convenience of watching the movie in the comfort of the house. Second, to watch a movie through commercial television, it takes longer time to be available and is interrupted by commercials. Third, to watch movies through the internet, on the computer; it may be convenient, but not comfortable. Also, a customer always has as an option not to spend their free time watching movies. The substitutes are weak until technology allows for easy, quick and cheap movies to be downloaded through the internet and transfer to the TV. The threat of substitution is low. 4 The power of buyers: The source of dissatisfaction of customers comes from the narrow selection of movies and the rental due dates resulting in late fees. It becomes expensive for those who are volume customers and have to pay large amounts of money. But buyers have low switching cost as there are several options for renting movies, despite this fact, individual customers do not hold bargaining power over the price of products in this market since one customer’s decision to buy the service or not will not affect the overall market at all; similarly one customer’s dissatisfaction will not influence other customers significantly. The level of dissatisfaction with the service would promote a widespread response in the presence of a differentiated product that is more convenient and satisfactory for customers. Netflix â€Å"invested in things that were strategically relevant to customer satisfaction potential† (2) taking advantage of discontent of the underserved customers which increased buyers’ switching cost and decreased the buyer power. The power of supplier: High up-front investment is necessary to be able to acquire films. Without direct relationships with major studios, the industry depended on a small number of movie distributors to acquire the movies with little or no discount increasing the supplier power. Netflix built relationships with major film producers to decrease the up-front cost of new releases by splitting additional revenue; they were able to acquire more movies in a timely manner to satisfy demand. â€Å"As Netflix built its film library, it grew in importance as a distribution channel for many small and independent film studios† †¦ â€Å" Netflix acquired the distribution rights to certain independent films through its Red Envelope Subsidiary†(2). All the actions taken helped Netflix to both decrease the supplier power while increase their movie selection. The mail delivery system had also a major role as Netflix’s supplier. They highly depended on USPS for the success of their model (delivery and return of movies in a timely manner). Netflix took advantage of the declining first class mail industry and strengthen their relationship with USPS, receiving discounts while working on an efficient plan to expedite deliveries and returns and improve customer satisfaction. 5 Rivalry: The home video industry had been highly populated by small and large players with little differentiation offering, basically commodity service in a larger and smaller scale. Blockbuster had been the leader for a long time and smaller â€Å"mom and pops shops† did not present strong competition. The rivalry could be considered medium. As industry grew in a constant pace, more people demanded a wider selection with more convenience; this allowed Netflix to get into the industry with a differentiated product that allowed them to succeed. 3. 2 VRIO Perspective Netflix initial strategic advantage was based on differentiation from using the internet to select the movies, their unlimited monthly movies from the subscription based system with no late fees, the wider inventory of movies and the use of mail for delivery, very different from Blockbuster’s offering. It was a good strategy over the short term, but it only gave Netflix a temporal competitive advantage as anybody could copy what they were doing. To build a sustainable competitive advantage Netflix dedicated a lot of resources to make their offering unique; this helped them to further differentiate themselves. This strategy leveraged the value proposition of convenience and selection by personalizing their offering and building strong relationships between their system and their customers, their intent was to increase customer retention, offering features that customers could not find at any competitor, and that would be too difficult for a competitor to copy. Netflix invested in technology that allowed them to get to know customers using surveys, movie reviews and monitoring rental trends. All this permitted Netflix to give customers accurate recommendation of movies based on customer likes while having a queue of movies that would be shipped to them on priority basis. Using their core strengths and building rarity and difficulty of imitability, as observed in the VRIO analysis in Table 1, Netflix customer data base and personalized offering allowed them to have a sustainable competitive advantage in delivering home video entertainment. 6 Table 1: Netflix critical success factors – VRIO break down | Resources| V| R| I| O| | Physical| | | | | | | Technology| * | * | | * | TCA| Logistics| * | * | | * | TCA| | Geographical reach| * | | | * | | | Wide selection| * | * | * | * | SCA| | Brand| * | * | | * | TCA| | Convenience Easy access| * | * | | * | TCA| | Customer database| * | * | * | * | SCA| Organization| | | | | | | Knowing customer| * | * | * | * | SCA| | Recommendation| * | * | * | * | SCA| | Subscription| * | * | | * | TCA| | No late fees| * | * | | * | TC A| | Relationship with studios| * | * | | * | TCA| Human| | | | | | Team commitment| * | * | * | * | SCA| TCA – Temporary Competitive Advantage (Strength and distinctive competence) SCA – Sustainable competitive Advantage (Strength and sustainable distinctive competence) 4. Video On Demand (VOD) – Strategic Advantage While Netflix â€Å"believed that the DVD rental market would remain healthy for years in the future†(2), they also recognized, just as they did when entering the DVD market, the need to take advantage of the fast pace growing technology and enter the VOD market in its early stages in order to maintain ts superior â€Å"position as a giant in the media industry†(2). Unlike Blockbusters’ response when Netflix first appeared with a product so different from theirs, rather than seeing the new offering as an option that would appeal only to a niche market(2), Netflix acknowledged the VOD offering as a service that would benefit the mass market needs(2). 7 VOD presents two main challenges, the first is the hardware requirements to allow connectivity between the computer and television, adopting streaming offering would allow Netflix to establish in the VOD market while waiting for the technology to develop. The second is â€Å"the current limitations in available content† (2). Adopting the VOD business as a separate service could hurt Netflix’s â€Å"wide selection† image making it difficult to satisfy its wide range of customers. While Netflix must continue pressuring the studios to let them have more available films in VOD, choosing the option of integrating a streaming online video feature in their core offering, would allow them to build on their current differentiation strengths: unlimited monthly rentals from a great variety of movies and personalized service. New customers interested in the VOD offering would also enter in the data base helping further growth of Netflix’s customized and personalized system while taking advantage of their variety of DVD movies still not available through VOD. In the initial stages, both DVD online rental and VOD would complement each other. It would be expected for the streaming online video feature to increase popularity while overcoming the technical challenges of VOD. At the same time, the DVD rental business would be expected to decline. This strategy would help them transition effectively in the market. It will be easier to convert its customer from DVD’s delivered movies to VOD rather than acquiring new customers from scratch. Finally, integrating the current offering with the streaming online video while leveraging from their distinctive competencies, ultimately will give Netflix a sustainable competitive advantage â€Å"to allow for the best home video viewing for its customers† (2). References (1) W. Chan Kim and Renee Mauborgne, â€Å"Blue Ocean Strategy: From Theory to Practice† California Review Management, 2005. (2) 8 8 7 7 Willy Shih, Stephen Kaufman and David Spinola, â€Å"Netflix†, Harvard Business School, November 19, 2007.