Netflix, the One-Time "Dot-Com" Upstart Managed to Achieve Scale Economies

question 73

Essay

Netflix, the one-time "dot-com" upstart managed to achieve scale economies despite the fact that it faced two massive rivals: Blockbuster, a name synonymous with home video rental, and Walmart, not just a large firm, Fortune One, the largest firm in the US ranked by revenues. In what ways did Netflix offer size advantages over these rivals?

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Definitions:

Selling Stock

The act of offering company shares for sale to investors, typically to raise capital.

Capital Gains

The profit earned from the sale of a non-inventory asset that was purchased at a lower price, often subject to taxes.

Valid Trust

A trust that fulfills all legal requirements, ensuring its enforceability and the legal protection of the assets and beneficiaries involved.

Conveyance

The legal process of transferring property from one owner to another.