Opportunities

Demographics throughout all Australian cities reflect significant opportunity for an online DVD ordering service, replicating the success of NetFlix in the U.S.

Development of music and other forms of digital content can also specifically be sold through this channel once established.

Potential exit strategy is to sell QuickFlix to NetFlix.

Threats

Well-funded broadband providers attack the downloadable movie market and force a premature consolidation of this business model.

Pricing becomes more inelastic and profitability suffers.

Postal costs continue growing exponentially and drive up costs that are not forecasted.

Order management systems fail to deliver with a high level of accuracy and much customer dissatisfaction comes about as a result.

5.0 Evaluation of Alternative Marketing Strategies

The use of a price skimming, price exception, or premium pricing strategy all are alternatives, yet the best possible approach is to define a services-driven costing model based on the specific rental levels of...
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