Alright, let’s talk about this Michael Porter and that Netflix thing, you know? I heard some folks jabbering about it, so I figured I’d put in my two cents, even if it ain’t worth much.
First off, this Porter fella, he’s got some ideas about how businesses can get ahead. He says there are three main ways, like three roads you can take. One is being the cheapest. That means you gotta squeeze every penny ’til the buffalo screams, you know? Make stuff cheaper than everyone else. Then folks will come running to you, ’cause everyone loves a bargain.
The second way, Porter says, is being different. You can’t just be another face in the crowd. You gotta stick out, like a sore thumb, but in a good way. Maybe your stuff is fancier, or lasts longer, or does something special no one else can do. People will pay extra if they think they’re getting something special, you see?
And then there’s the third way, Porter calls it focus. That means you don’t try to sell to everyone. You pick a small group, a niche they call it, and you become the best darn thing for that group. Like, if you only sell socks to folks with big feet, you better have the best darn big socks in the whole wide world. Those big-footed folks will be your best customers.
Now, where does Netflix fit in all this? Well, them folks at Netflix, they ain’t the cheapest. There are other ways to watch movies and shows that cost less, you know? So, they ain’t winning on price. And they ain’t really focusing on just one little group either. Everyone and their grandma watches Netflix, it seems like. So, that leaves us with being different.
- Netflix changed the game, you see?
- They used to send you them DVDs in the mail, remember that? Then, boom, they started streaming everything over the internet. Nobody else was doing that, at least not like Netflix was.
- And they kept adding new shows and movies, all sorts of stuff, so there was always something to watch. They made it easy, too, no fussing with commercials or going to the video store. Just click a button and there you go.
That’s how they got ahead. They were different, they were convenient, and they were always giving you something new. They spoiled us rotten, that’s what they did.
But Porter, he’s got more than just them three ways. He also talks about these “five forces,” like five big things that can make or break a business. I ain’t gonna go through all five, ’cause my head’s starting to spin, but it’s like, you gotta worry about who you’re buying from, who you’re selling to, who else is trying to sell the same stuff, and if there’s something else people could use instead of your stuff. It’s a whole lotta things to keep track of, let me tell you.
For Netflix, them suppliers, that’s the folks making the movies and shows. Netflix gotta keep them happy, otherwise they ain’t got nothing to show. And them customers, well, that’s us. We got a lot of choices now, so Netflix gotta keep us happy too. And then there’s the other fellas trying to do the same thing, like Amazon and Disney and all them. Netflix gotta stay one step ahead, otherwise they’ll get left in the dust.
And don’t forget about things that ain’t exactly the same but could take the place of Netflix. Like, maybe folks start playing more video games, or go outside more. That ain’t direct competition, but it’s still something Netflix gotta worry about.
So, this Porter guy, he might sound fancy with his strategies and his five forces, but it all boils down to common sense, you know? Make good stuff, don’t charge too much, treat people right, and keep an eye on what everyone else is doing. That’s how you stay in business, whether you’re selling movies or watermelons.
Netflix, they did a good job of that for a while. But they gotta keep hustling, that’s for sure. The world changes fast, and if you don’t keep up, you’ll get left behind quicker than a jackrabbit in a dog race.
Anyway, that’s my take on it. Might not be what them fancy business folks say, but it’s the truth as I see it. And at the end of the day, ain’t that what really matters?
