Alright, let’s chew the fat about this Netflix thing, whatever they call it, “Porter’s Five Forces.” Sounds fancy, but I’ll make it plain as day, like sun-dried tomatoes on a windowsill.
First thing’s first, the big shots who sell stuff to Netflix – the “suppliers”. Now, Netflix, they need movies and shows, right? So, these movie makers and TV folks, they got some say. If they jack up the prices, Netflix gotta cough up the dough or they ain’t got nothin’ to show. That’s the power of them suppliers. But hold on, Netflix ain’t no pushover. They got big bucks, and they makin’ their own shows now too, see? So, it’s like a tug-of-war, back and forth.
- Suppliers got power ’cause they make the goods.
- Netflix got power ’cause they got the money and a big audience.
Next up, the folks watchin’ the shows – the “customers”. That’s you and me, and everyone we know with an internet hookup. Now, we got some power too. If Netflix starts chargin’ too much, or the shows get lousy, we can just up and leave, go watch somethin’ else. There’s plenty of fish in the sea, as they say. We can go to them other movie places, or even just watch cat videos on the internet all day, who’s gonna stop us? So, Netflix gotta keep us happy, keep them prices decent, and keep pumpin’ out good shows. It ain’t rocket science, just common sense.
Now, let’s talk about the other movie places, the “competitors”. You got your Amazons, your Disneys, and a whole bunch of others, all fightin’ for our eyeballs and our dollars. That’s what they call “competitive rivalry” , sounds like a cat fight at the county fair, doesn’t it?. It’s like a chicken coop, everyone peckin’ at each other. They all tryin’ to get the best shows, the best prices, the best everything. Netflix gotta stay on their toes, or they’ll get left in the dust. They gotta keep makin’ them shows better and better, and maybe throw in a deal or two to keep us stickin’ around.
Then there’s them other things you can watch, the “substitutes”. That’s not just other movie places, it’s anything you could do instead of watchin’ Netflix. You could go outside, read a book, play bingo with the gals, who knows. People got a lot of choices these days. So, Netflix gotta make sure their stuff is more interestin’ than, say, watchin’ paint dry or countin’ sheep. It’s a battle for our time, not just our money.
And finally, the new kids on the block, the “new entrants”. Anybody can start a movie place these days, seems like. You just need some money and a few good shows. So, Netflix gotta worry about them newcomers too. They gotta keep their game strong, so nobody can swoop in and steal their customers. It’s like bakin’ a pie, you gotta make sure it’s the best darn pie in town, or folks will go buy their pie from the new bakery down the street.
So, what does all this “Five Forces” mumbo jumbo mean? Well, it just means Netflix gotta be smart. They gotta keep them suppliers happy, keep us customers happy, keep an eye on them competitors, make sure their stuff is better than them substitutes, and watch out for them new kids on the block. It’s a lot to juggle, but if they do it right, they’ll be just fine.
Here’s the plain truth of it:
- Suppliers: Gotta keep ’em sweet, but don’t let ’em walk all over ya.
- Customers: Treat ’em right, give ’em good stuff, and don’t gouge ’em.
- Competitors: Keep your friends close, and your enemies closer, as they say. Or was it keep your chickens close and your…never mind.
- Substitutes: Make your stuff so good, nobody wants anything else.
- New Entrants: Build a wall, metaphorically speaking, not like that fella on TV. Make it hard for newcomers to get a foothold.
That’s it, that’s the whole shebang. Netflix gotta play their cards right, or they’ll be out on their ear faster than a jackrabbit in a dog race. But they seem to be doin’ alright so far, so I reckon they know what they’re doin’. Just gotta keep their eyes on the prize, and keep them shows comin’. And for goodness sake, keep the prices reasonable, ain’t nobody got money to burn these days. Now, if you’ll excuse me, I gotta go water my petunias.
