Netflix

The red ocean industry that I decided to cover is video rentals and the company chosen is Netflix. The company has succeeded in overwhelming major competitor Blockbuster through differentiation, in this case the use of the Internet as a distribution mechanism rather than storefronts. According to Kim and Mauborgne (2010), the six paths framework seeks to uncover a new open space for the firm. The six paths are:

"Looking across alternative industries instead of focusing on competing within an industry; looking across strategic groups within industries instead of a company confining itself to established strategic groups; looking across the chain of buyers instead of focusing on the same buyer group as the rest of the industry; looking across complementary products and services instead of a company limiting itself to the scope of an industry's products and services; looking across functional or emotional appeal to buyers instead of accepting an...
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