Assignment:
Discussion Post
Part 1
In a fast moving and complex world of technology, it is crucial that companies keep up to date with the functions and desires of technology. Netflix is an internet television network, which falls into the entertainment industry. As in any type of entertainment, it tends to fall short of meeting all customers' expectations. Blocker, Stout, Juras, &Cokins, states that total quality management will allow for production of reliable products that exceed customer' expectations (2016). How does a company exceed customers' expectations while staying within limits of reasonable spending?
It becomes of a challenge from time to time when consumers reconstruct their identity by integrating it with specific situations at that particular time (Platania, M., Platania, S., &Santisi. 2016). The answer is bold innovation. Bold innovations consist of breakthrough products, services and solutions that create growth for the future, this looks beyond tomorrows growth (Cooper, 2011). The company leverages it strengths to its advantages and adds additional attractions / services to exceed customers expectations, as compared to surrounding competitors.
According to Market Watch, when Netflix last increased their subscription prices by 2 dollars it led to larger than expected cancellations (Owens, 2016). Unfortunately Netflix increased prices without increasing services, consumers don't want to pay for less than their money worth. According to Market Watch the price increase was necessary for the company based upon the supply and demand effect of pricing strategies (Owens, 2016). Netflix succeeded in acknowledging their lack of pricing strategy when viewed against competition and their price increase with additional services to enhance customer satisfaction.
"Every company must remain diligent, and in constant state of evaluation and adjustment, in order to avoid the various pitfalls that may befall a company's leadership team and the company" (Hicks, 2010). Total quality management would be of a positive force in helping the company achieve its critical success factors, for this method will ensure products exceed customers expectations while analyzing cost aspects against competitors.
References
Blocher, E. J., Stout, D. E., Juras, P. E., &Cokins, G. 2016. Cost management: A strategicemphasis (7th ed.). Boston, MA: McGraw-Hill.
Cooper, R. 2011. Perspective: The Innovation Dilemma: How to Innovate When the Market Is Mature. The Journal Of Product Innovation Management. John Wiley & Sons, Inc.
Hicks, M. 2010.Accounting for decision making- A study guide. Raleigh, NC: Synergistics,Inc.
Owens, J. 2016. Netflix price increase does damage, but media and subscribers blamed. Market Watch.
Platania, M., Platania, S., &Santisi, G. 2016. Entertainment marketing, experiential consumption and consumer behavior: the determinant of choice of wine in the store. Wine Economics and Policy.Vol. 5, ISS 2.
Part 2
Apple is a very well-known company who competes in various industries. Some of the industries/markets in which they compete are electronic equipment, personal computer, mobile phones, mobile payment systems, and media/entertainment. This paper will focus on the mobile payments portion of their business. According to the Business Insider Apple is dominating the industry. This is a great accomplishment, but the issue that Apple needs to consider is that "74% of mobile wallet nonusers wouldn't want to engage in mobile payment activity even if all barriers were lifted" (Intelligence, 2016). However, the active users of Apple Pay monthly measured an increase of 450% year over year in June 2016. Business Insider reported in July of 2016 that 3 out of 4 transactions in the United States that were contactless were processed via Apple Pay.
The challenge is that there is still an untapped market who are not using this service. It is important to look at what business strategies could be utilized in order to reach this population. "In business terms, how successful once becomes ultimately lies in the formation and execution of a well-defined competitive strategy" (Hicks, 2010, p. 2). Benchmarking would be a helpful contemporary management technique /process for Apple to employ. Apple could utilize this process to identify its critical success factors, study the best practices of other businesses, the improvements of processes to the firm could then be implemented to help match or beat any competitors (Blocher, Stout, Juras, &Cokins, 2016).
Although Apple is the leader in this industry there is always something to be learned from our competitors. No corporation has all of the answers when it comes to processes and marketing. Perhaps one of the competitors is doing things more efficiently when comes to costs or ease of use. By utilizing benchmarking Apple will be able to analyze these areas and improve in areas where they are weak. By constantly improving they can continue to maintain and even improve their market share in this industry.
References
Blocher, E., Stout, D., Juras, P., &Cokins, G. (2016). Cost management: a strategic emphasis. New York, NY: McGraw-Hill/Irwin.
Hicks, M. (2010). Accounting for decision making: A study guide. Raleigh, NC: Synergistics Inc.
Intelligence, B. (2016, July 28). Apple Pay is dominating the mobile payments industry.