Questions:
1. How will the entry of firms such as Apple, Google, Amazon, Hulu, and Comcast into the business of streaming movies affect Netflix? Why do some analysts question whether Netflix can survive against these competitors? To survive, what must Netflix do?
2. According to an article in the Wall Street Journal: In early January last year, after a disappointing Charismas season and amid worries about competition from discount retailers, Zale Corp. decided to shake things up: The self-proclaimed jeweler to Middle America was going to chase upscale customers....The move was a disaster. The Irving, Texas, retailer lost many of its traditional customers without winning the new ones it coveted. (From Ann Zimmerman and Kris Hudson, "Chasing Upsale Customers Tarnishes Mass-Market Jeweler," Wall Street Journal, June 26, 2006. P. A1.
Why would a firm like Zale abandon one market niche for another market niche? We know that in this case the move was not successful. Can you think of other cases where the company successful changed its business strategy