Tasneem Shafiq

 A Comparative Study On The Digital Marketing Strategies Of Online Influencers In The Movie Industry [Student Name] [Student Institute] Executive Summary It is identified that there is an optimistic relationship between the internet and the change in the profitability of the movie. It is argued that the conventional regulations and policies for the selling of movies are modifying through the innovations of internet. The Netflix and Apple are changing their business processes with the changing political, social, environmental, economical, technological and legal conditions. It is argued that the latest technologies are reducing the cost and leading to enhance the quality of the Apple’s products and services. The persona of the Apple is about the way of life, thoughts, freedom regaining, innovativeness, passion, confidence as well as requirements and ideas along with the perception of giving power to ordinary people so that they can take positive advantage for themselves and for the society. However, the persona of the Netflix is about simplicity, attractiveness, delightfulness and passion as well as innovation and creativity. Contents Part: A Environmental Analysis5 PESTEL Analysis of Apple5 Political5 Economical5 Social5 Technological5 Environmental5 Legal6 PESTEL analysis of Netflix6 Political6 Economical6 Social6 Technological6 Environmental7 Legal7 SWOT Analysis of Apple7 Strength7 Weaknesses7 Opportunities7 Threats7 SWOT Analysis of Netflix8 Strength8 Weaknesses8 Opportunities8 Threats8 Comparing E-Marketing Mix Strategy of Apple And Netflix8 Marketing Mix of Apple9 Product9 Price10 Place10 Promotion11 Marketing Mix of Netflix11 Product11 Price12 Promotion12 Place13 Conclusion13 References14 Introduction It is argued that there is a positive relationship between the internet and the change in the profitability of the movie industry [ CITATION Wan14 \l 1033 ]. The internet is changing the whole competition of the movie industry. It is argued that the traditional regulations and policies for the selling of movies are changing through innovations of internet. Where, the movies are extensively setting around analog technologies with the business model which is based on the stiff window systems and uniqueness[ CITATION Kei15 \l 1033 ]. While , current advancements in electronic technologies are varying the way people use media and putting pressure on the conventional models for releasing the movies and suggesting them to change the way the other peoples are changing and improving their brand quality and reputation as well as earning high[ CITATION Pay13 \l 1033 ]. This paper discusses about the role of internet in the movie industry as well as critically evaluating and comparing the e-business strategies of Apple and Netflix. Part: A Environmental Analysis PESTEL Analysis of Apple Political The political aspect is the most crucial aspect of Apple where the company as an international company requires emphasizing on the government rules and regulations to achieve political security and stability[ CITATION Gab15 \l 1033 ]. Economical The iTunes product of Apple has total spending of about 347 million within the home video entertainment in 2016, While, it will enhance by 3.4 percent in the next coming years[ CITATION Kei15 \l 1033 ]. Social The apple has turned out to be more involved in the life style than a service or their products lead to the enhancement of their respect and status[ CITATION San12 \l 1033 ]. Technological The technology may decrease the cost which leads to innovate and enhance the quality. For instance, more equipments and devices are required to obtain entrance in the video file[ CITATION Gab15 \l 1033 ]. Environmental The biggest environment concerns the Apple is facing is the removal of used or unworkable electronic products that are damaged. However, the expense of disposing it is quite high, specifically those holding lithium batteries[ CITATION Kei15 \l 1033 ]. Legal The company has currently inserted itself in the extremely synchronized monetary service division through Apple Pay. This increases the stage of rules and regulations and the government failed to notice its different aspects[ CITATION Pay13 \l 1033 \m Wan14] PESTEL analysis of Netflix Political The Netflix is influenced by the varying rules and regulations as well as laws related to copyrights forms of content such as the television and movie shows that companies are depending on the demonstration in front of consumers[ CITATION Pay13 \l 1033 ]. The modification of the copyright laws may influence Netflix capability to distribute the content to consumers that could importantly influence business due to the content that may demonstrate large segments of the service offering by the company[ CITATION San12 \l 1033 ]. Economical The Netflix is aware of the economical factors and therefore playing good role of keeping their employees and investors as well as customer satisfied[ CITATION Kei15 \l 1033 ]. For example, the company has worked cautiously to keep them away from taking excess of liability while the interest rates can be altered greater in prospect and it influences the company badly[ CITATION San12 \l 1033 ]. Social The Netflix relies on the charisma of movies among consumers in the divisions of the target market. Since, the standard period of its potential customers is growing older. While, filming expenses amongst the elder demographics turned out to be less famous. It may badly influence the business[ CITATION Gab15 \l 1033 ]. Technological With the major processes of its businesses that are based on internet, the company is challenging with the continuously creating technologies around the globe as the industry is going progressive towards online expenditures[ CITATION Wil151 \l 1033 ]. Environmental The company is required to be capable of safeguarding the environment and make sure environment issues are not influencing its business, the company most of the time embrace this strategy[ CITATION Zhe14 \l 1033 ]. Legal There are legal factors that are relating to the laws and regulations that are controlling the business environment where any undesirable legislation can lead to complex the operations of Netflix. [ CITATION Pay13 \l 1033 \m Wan14] SWOT Analysis of Apple Strength Successful products such as iTunes , iPhone and iPod. Revenue generated of about 24 billion US dollars in 2015[ CITATION Gab15 \l 1033 ]. Weaknesses Only users of Apple can take advantage of their particular products and services such as iTunes[ CITATION Wil151 \l 1033 ]. Opportunities The company can be compatible with other platforms or operating systems[ CITATION Gab15 \l 1033 ]. Threats The company is facing threats related to technology improvisation around the world with the availability of broad range of online movie stores[ CITATION Pay13 \l 1033 ] SWOT Analysis of Netflix Strength Fame And Expediency[ CITATION Kei15 \l 1033 \m Wil151] Weaknesses The cost of the products is less contented for consumers and quite expensive [ CITATION Pay13 \l 1033 ]. Opportunities The company has distributed several of exclusive programs and can be a part of several recent marketing strategies[ CITATION Pay13 \l 1033 ]. Threats The company is facing piracy and legal rights issues which can be reduced through consulting with legal authorities[ CITATION Wan14 \l 1033 ] Part B: Comparing e-Businesses Strategies of Apple and Netflix From the e-business perspective, both of the companies are continuously converging and changing their requirement for productivity but bleakness is still present a bit[ CITATION Wil151 \l 1033 ]. The value chain concept is developing and sustaining the greater performance of both the companies. It influences the innovative technologies on the film distribution and consumption actions[ CITATION San12 \l 1033 ]. The main argument is that the single value change has conquered the conventional film distribution which is replaced by the modified business strategies that can give success and can be further modified with the changing requirements of film sellers and consumers. It is argued that there is potentially important modification for the self-governing movie as it changes from the supply led to a demand led market[ CITATION Pay13 \l 1033 ]. Comparing E-Marketing Mix Strategy of Apple And Netflix The marketing mix emphasizes on the marketing plans and strategies effectively implementing and encouraging their products and services of a business. Marketing strategies play a significant role in marketing mix. Following are the marketing mix of Apple and Netflix[ CITATION Wil151 \l 1033 ]. Marketing Mix of Apple Product The apple main capability is delivering outstanding experience through exceptional products that are good in look and feel and having excellent user interface. The Apple product strategy is based on iTunes, iPhones having touch screen and excellent multi touch function. These qualities are used in iPad and apple store is playing a major role[ CITATION Gab15 \l 1033 ]. However , the software products MacOS X operating system , iTune media browser , the iWork and iLife as well as logic Studio and safari browser are also playing a good role in increasing the reputation of products in the market[ CITATION Kei15 \l 1033 \m Wil151]. On the other hand, the consumer products are apple TV and all Mac products[ CITATION Wil151 \l 1033 ]. The digital products may include iTunes store, iCloud application store and Mac application store[ CITATION Zhe14 \l 1033 ]. Moreover, peripheral devices may include printers, storage devices, digital videos and cameras. It is argued that the products have distinct essence with regards to color and hardware specification where the specifications are straightforwardly connected with price[ CITATION Wil151 \l 1033 ]. Figure 1: Apple Products[ CITATION Kei15 \l 1033 ] For numerous years , apple product strategy may involve developing innovative products and services which is ally with a ‘ digital hub’ strategy where the company functions as the digital hub for the digital devices that may include ipod , cell phones , cameras , digital video as well as electronic devices[ CITATION Zhe14 \l 1033 ]. Price The product costs are quite close to that of dell in the form of price to the consumer, Apple computer products have a supplementary cost benefit. The company does not need to pay other companies for their operating system licenses[ CITATION Wil151 \l 1033 ]. The price of Apple hardly ever vary and mostly suitable to the target markets and it is termed as premium price strategy[ CITATION San12 \l 1033 ]. The apple is the premium brand computer that does not ever have an interest to try to win on the price basis[ CITATION Gab15 \l 1033 ]. The company has decreased prices after some initial products were launched, it utilizes top and skimming pricing strategy. The minimum price of Apple’s iPad is about 499$ , while iPhone cost starts at 99 dollar[ CITATION San12 \l 1033 ]. The Apple iPod classic is priced initiating at 249 dollars. Apples iPad pricing plan comprises of the suppleness to inferior the prices if customers reply something regarding the product price. It is evident with two hundred dollars price slash on the iPhone in 2007[ CITATION Zhe14 \l 1033 ]. In 2009 Apple proclaimed a reduced cost pricing arrangement for iTune songs will price sixty nine cent from ninety nine cents. The consumers said enormous collection of the songs will cost sixty nine cents only. They also responded towards a slower speed of download of music[ CITATION San12 \l 1033 ]. Place The apple has developed huge advancement to become more effective with its manufacturing supply chain, logistics and operations[ CITATION Gab15 \l 1033 ]. The products are provided from several sources by means of channel who are several distributors and several retailers. The headquarter of Apple is resided at one infinite loop California however its consultant network that may include independent professional service providers and technology consulting organizations that are specialized in Apple and other third party solution provider[ CITATION Wil151 \l 1033 ]. Promotion Apple utilizes the apple brand to compete across numerous greatly competitive markets that may include personal computer industry with its mackintosh and software as well as customer electronic industry[ CITATION Kei15 \l 1033 ]. The Apple has also created a very good presence in the market in comparison to its rivals. The Apple in the advertising market has got high position through his business applications and iAd network. For the promotion, the brand personality or persona of the company is about lifestyle, imagination, liberty regaining, innovativeness, obsession, hopefulness as well as desires and dreams along with the perception of power to the people through using technology[ CITATION Kei15 \l 1033 ]. It is also about simplicity and reduction of intricacies from the lives of people and hence they are making people oriented products and are humanistic in nature with strong relationship with their consumers[ CITATION Wil151 \l 1033 ]. The company completely understands that all factors of the consumer experience are significant and all brands must support by the Apple brand. Moreover, the communication strategy of Apple is clear-headed, exciting, straightforward, modest and smart[ CITATION Pay13 \l 1033 ]. Their communication strategy has a distinctive style whether it is reflected in their television advertisement or in printing advertisement or in online. Apple promotes its products through offline shops or online shops, television, printing advertisement, and billboards as well as supermarkets with a unique and steady style[ CITATION Wil151 \l 1033 ]. Marketing Mix of Netflix Product The Netflix an online movie rental service has developed an innovative service category and got leadership in it. Since, it starts in the year of 1997; the video rental service has revolutionized the way American rent their movies[ CITATION Gab15 \l 1033 ]. There are around 3 million subscribers in 2004. In 2004, the players enter in the category of product while DVD rental category service is initiated and grew[ CITATION San12 \l 1033 ]. In store movie rental is reduced by twenty percent. Streaming is one of the service of the company where users can do streaming in few dollars, the people need to have access of the Netflix catalogues and people can see any of their device when and how much they want. The TV shows are also produced by Netflix[ CITATION Wil151 \l 1033 ]. Price The Netflix wants to be cheap and reliable for their valuable customers as well as to attract several subscribers as much as possible, they believe that price is required to be low while profit is required to be come with the economy of scale standard. In the United States of America the right price is 7.99 US dollars which is the right price uptil yet[ CITATION Kei15 \l 1033 ]. The company main aim is to achieve maximum share of market that can converts to the consumer appeal and preservation. Moreover, Hulu is one of the competitors of Netflix as far as pricing strategies are concerned; it is observed that there is so much changing of prices in the streaming industry while the company will experience loss of subscribers if they are not changing the price swiftly according to market conditions[ CITATION Kei15 \l 1033 ]. Promotion Among the four categories of communication strategy that may include direct , personalized , mass marketing and general approach, Netflix use general approach for the banner advertisements , emailing and for viral marketing[ CITATION Pay13 \l 1033 ]. The company is using one of the oldest strategies of giving the first month for free to attract millions of customers and to sustain loyalty in front of their customers. The promotional aims of the company are to enhance the brand awareness, emphasizing the competitive price and several of the content are having social media integration[ CITATION Wan14 \l 1033 ]. Moreover, to enhance the number of subscribers as well as frequency rates of the users, one of the promotional strategies of the company is utilized. However, the Netflix utilizes internet advertisements, events and other sponsorships such as arranging festivals as well as Television commercial advertisements[ CITATION Pay13 \l 1033 ]. They also utilizes QR codes in bus stops, they utilize candy and popcorn shops for the promotion of their products and services. They use mobile ads to reach their mobile and youthful consumers[ CITATION San12 \l 1033 ]. They also do social media advertisement where they utilizes Facebook, twitter etc to promote their products by developing groups and ads. In their entire promotional package they have one green line that is ‘watch what you want, when you want at reasonable prices’. The persona of the company is simple, attractive and delighted with passion[ CITATION Gab15 \l 1033 \m Pay13]. Place The distribution of the products is mainly done in the United States of America considered their local residence. For the DVD rentals with the United States post while for the streaming they are with the country internet service providers[ CITATION San12 \l 1033 ]. For the countries apart from USA, the DVD rental service is not available uptil yet only the streaming through internet service provider is utilized a distribution[ CITATION Kei15 \l 1033 \m Gab15]. The company has made the process simple in which the consumers read details of the subscription and make their log in id which is simple and self service procedure, it hardly takes few minutes to develop an account of Netflix and start watching movies swiftly within few minutes[ CITATION Kei15 \l 1033 \m Wan14]. Conclusion It is concluded that the internet is varying the entire competition of the movie industry. The movies are greatly setting around the analog technologies with the business model that are based on the unbending windows systems and individuality. It is observed that the political feature is the most vital aspect of Apple where the company as an international company needs to focus on management rules and regulations to attain political safety and steadiness. However, The Netflix is influenced by the unreliable policies and systems and laws concerning to copyrights forms of content such as the television and movie demonstrate that companies are relying on the revelation in front of consumers. It is identified that from the e-business viewpoint, both of the companies are incessantly joining and varying their obligation for efficiency. The current advancements in electronic technologies are varying the way people use media. The political features is the most vital factor of the Apple where the company has turned out to be more attracted towards the life style than the price and their revenues, but focusing on the services and products to change the life style of the people in a more effective way. It is giving high reputation to the company. While, Netflix is doing the same thing but in a less manner as compare to, they are improving with some of their conventional strategies but having good reputation in the society because of their quality and trustworthiness of people on them regarding pricing and excellence . The value chain idea is creating and maintaining the better appearance of both the companies in the market. References Gabor Kovacs, J. J. (2015). An Analysis of Strategies by Netflix in the. Aarhus University. Kehoe, K., & Mateer, J. (2015). The Impact of Digital Technology on the Distribution Value Chain Model of Independent Feature Films in the UK. Journal International Journal on Media Management , 17-23. Mohapatra, S. (2012). E-Commerce Strategy: Text and Cases. Springer Science & Business Media. Payne, A., & Frow, P. (2013). Strategic Customer Management: Integrating Relationship Marketing and CRM. Cambridge University Press,. Pride, W. M., & Ferrell, O. C. (2015). Marketing 2016. Cengage Learning. 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