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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?


Definitions:

Purchasing

The process of acquiring goods or services to accomplish the goals of an organization, often involving activities such as selection, negotiation, and order placement.

New System

A newly implemented set of procedures, technologies, or methodologies designed to change or improve current operational processes.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time.

Investment

An asset or item acquired with the goal of generating income or appreciation.

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