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E-COMMERCE ASSIGNMENT
NAME: DIVYAL N. PAWAR
CLASS: FY BMS
DIVISION: C
ROLL NO.- 1596
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COMPARATIVE ANALYSIS
INTRODUCTION:
1) Comparative analysis is the process of comparing items to one another and distinguishing
their similarities and differences. When a business wants to analyse an idea, problem, theory
or question, conducting a comparative analysis allows it to better understand the issue and
form strategies in response.
2) A business might conduct this type of analysis to analyse things with obvious differences
or items with both differences and commonalities. Healthcare businesses, for example, may
conduct this analysis to compare and contrast two different types of medications. Other
businesses might conduct a comparative analysis to examine two different production
processes to determine which is more effective. Typically, a business conducts a comparative
analysis to determine:
● The strategies of indirect and direct competitors.
● The financial health of a business, including its investments and profit margins.
● Accounting strategies, such as budgets.
● How trends affect a target audience.
● Emerging opportunities in technology, marketing or related functions.
In the media industry, Over-The-Tops (OTTs) deliver audio, video and other media over the
Internet and bypass the operator’s network. Since the OTTs don’t require any business or
technology affiliations with network operators for providing such services, they are known
OTT applications (apps). Global media companies including new commers start to compete
with a subscription-based video on demand (SVOD) service available to Internet users. Since
November 2019 Apple+, Disney+, and Discovery+ have joined the established global
providers like Netflix, Hulu and Amazon Prime Video (APV).
This project focuses on comparative analysis between two leading video
streaming companies-AMAZON PRIME and NETFLIX. Ad-free online streaming for
movies and TV shows on virtually any device that is the promise of both Netflix and Amazon
Prime InstantVideo. Netflix has a larger content library and apps for more platforms and
devices than that supported by Amazon Prime. Netflix also offers subtitles (or
closed-captioning) for more TVshows and movies than Amazon.The biggest bone of
contention between Amazon Prime and Netflix has been the size of the content library.
Amazon Prime has a smaller library of available titles, but tends to offer more of the latest
movies and TV shows for instant watching. Netflix, on the other hand only offers TV shows
and movies that are over a year old (with the exception of Netflix's own productions), but has
a much larger library of shows and movies than Amazon Prime.
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BUSINESS MODELS:
NETFLIX:
Netflix’s business model is based on a subscription-based streaming service.
The company charges a monthly fee for access to its library of movies and TV.
Users can watch as much content as they want for the month and can cancel
their subscription at any time. Netflix also produces its own original
programming, such as House of Cards, Stranger Things, and Narcos. This
provides the company with additional revenue as well as increased visibility.
Netflix also offers DVDs for rent through its website and app. Additionally, the
company has begun to partner with cable providers to offer its streaming
services directly through set-top boxes.
AMAZON PRIME:
i.) Amazon Prime is an annual subscription service offered by Amazon.com. It offers
customers a variety of benefits, including free two-day shipping on eligible purchases,
access to Prime Video and Prime Music, free unlimited cloud storage, access to select
eBooks and audiobooks, and discounts on select products.
ii.) The business model of Amazon Prime is based on providing customers with a
variety of benefits in exchange for an annual fee. Amazon Prime members pay a flat
fee of $119 per year (or $12.99 per month) for access to all of the benefits offered.
This fee helps Amazon cover the cost of providing the benefits, as well as generating
revenue.
iii.) The main way that Amazon makes money off of Prime is through the sales of
additional services and products. Amazon Prime members are more likely to purchase
items from Amazon and take advantage of services such as Prime Video and Prime
Music. Additionally, Prime members have access to exclusive deals and discounts on
select products, which can help increase sales. Amazon also earns revenue from
third-party sellers who pay to be featured on the Amazon Prime platform.
iv.) Overall, Amazon Prime has been a great success for the company and has helped
to increase customer loyalty and drive sales. Amazon Prime is a great example of how
a subscription-based business model can be successful.
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STRATEGIES:
NETFLIX:
Business strategies of Netflix:
1.Price Leadershi- Netflix has successfully used its pricing strategy to establish itself
as the leader in the streaming video on demand market. By offering consumers a
low-cost subscription fee, Netflix has been able to differentiate itself from its
competitors and drive adoption. Netflix also utilizes a tiered pricing model, allowing it
to appeal to different customer segments.
2. Content Leadership- Netflix has invested heavily in creating original content that is
exclusive to its platform. This has enabled Netflix to stand out from its competitors
and attract new subscribers. Netflix has also taken an aggressive approach to acquiring
content from other sources, ensuring that its library is constantly growing and
evolving.
3. User Experience- Netflix has developed a user-friendly interface that makes it easy
for users to find the content they want. This has allowed Netflix to become the leader
in the market and drive adoption. Netflix has also invested in improving its streaming
technology, ensuring that its viewers have the best possible experience when
streaming content.
4. Partnerships- Netflix has partnered with other companies to expand its reach. For
example, it has partnered with telecommunications companies to offer bundled
packages that include both television and streaming services. This has enabled Netflix
to tap into new customer segments and increase its customer base.
5. Marketing- Netflix has invested heavily in marketing and advertising campaigns to
promote its services. This has helped to create brand awareness and drive adoption.
Netflix has also utilized social media to engage with its customers and promote its
brand.
6. International Expansion- Netflix has expanded into more than 190 countries,
making it one of the most widely available streaming services in the world. This has
allowed Netflix to tap into new customer segments and increase its customer base.
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AMAZON PRIME:
BUSINESS STRATEGIES OF AMAZON PRIME:
Business strategies of Amazon Prime:
1. Offer Free Shipping - Amazon Prime offers free two-day shipping on millions of
items across the platform. This has been a major draw for customers and has helped
the company retain customers and gain market share.
2. Offer Exclusive Deals - Amazon Prime offers exclusive deals to its members. These
deals are often much better than the deals offered to non-Prime members, which helps
encourage people to sign up for the membership.
3. Offer Exclusive Content - Amazon Prime also offers exclusive content in the form
of movies, TV shows, and music. This content is only available to Prime members and
helps keep them engaged with the service.
4. Offer Additional Services - Amazon Prime offers additional services such as
Amazon Music, Amazon Video, and Amazon Photos. These services are all included
in the price of the membership and help to add value to the service.
5. Offer Subscription Services - Amazon Prime also offers subscription services such
as Amazon Pantry and Amazon Fresh. These services help Prime members save
money on their grocery bills and provide additional convenience.
6. Offer Loyalty Programs - Amazon Prime offers loyalty programs such as Prime
Now and Prime Day. These programs help to reward customers for their loyalty and
encourage them to continue to shop with Amazon.
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FINDINGS OF NETFLIX AND AMAZON PRIME:
Comparative analysis of Netflix and Amazon prime Revenue and sustainability wise:
Netflix and Amazon Prime are both streaming video-on-demand services that have had
tremendous success and growth in recent years. While both have been successful in terms of
revenue, they differ significantly in terms of their sustainability and long-term prospects.
Netflix has been more successful in terms of revenue growth, having seen its revenue more
than double between 2019 and 2020. This has been driven by an increase in subscribers and
an increase in the number of countries in which it operates. Netflix has also benefited from
the increased demand for streaming services during the COVID-19 pandemic.
Amazon Prime, on the other hand, has seen slower revenue growth. This is largely due to the
fact that it is a more mature service, having been around for longer than Netflix. Additionally,
Amazon Prime's revenue is more dependent on its other services, such as Prime delivery and
Amazon Web Services.
In terms of sustainability, Netflix is the clear winner. It has a large, loyal customer base and is
well-positioned to continue to grow in the future. Amazon, on the other hand, is more reliant
on its other services and is more vulnerable to changes in the market.
Overall, both Netflix and Amazon Prime have been successful in terms of revenue growth,
but Netflix has a more sustainable long-term outlook.
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CONCLUSION:
Netflix and Amazon Prime are two of the most popular streaming services available today.
Both offer an extensive library of movies, TV shows, and other content. While Netflix is the
industry leader, Amazon Prime offers an equally impressive selection of content for a fraction
of the cost.
Netflix offers a wide variety of content, including original series and movies, as well as a
large selection of third-party content. While the cost of a Netflix subscription is higher than
Amazon Prime, the library of content is larger and more varied. Additionally, Netflix allows
you to watch content offline and has a more user-friendly interface.
Amazon Prime offers a more affordable subscription fee and access to a large library of
movies and TV shows. Amazon Prime also offers a wide selection of third-party content, as
well as Amazon Originals. Additionally, Amazon Prime has a convenient store-based
delivery service which makes it easier to receive physical media.
In conclusion, Netflix and Amazon Prime are both excellent streaming services that offer a
large selection of content. Netflix offers a larger library of content, as well as the ability to
watch content offline, but it is more expensive than Amazon Prime. Amazon Prime is a more
affordable option and offers convenience in the form of store-based delivery, but its library is
not as expansive as Netflix. Depending on what type of content you prefer and how much
you are willing to pay, either Netflix or Amazon Prime could be the best streaming service
for you.
