The Video-Streaming Wars in 2019: Can Disney Catch Netflix?

Case Analysis
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CASE ANALYSIS
Can Disney Catch Netflix?
Part 1
Entertainment is very important for any organization. As the Board member of Disney, I have the responsibility of ensuring Disney is competitive in the market. The main question is, can Disney catch Netflix? With the Disney+ strategy, Disney can catch Netflix, and they will be able to share the market. However, there are various challenges Disney is experiencing, and this had made it hard for the organization to implement this strategy effectively.
Part 2
Entertainment has taken elite companies in this industry to another interesting competitive level. Disney has grabbed a significant share of television loyalists who have been attracted by the high-quality pictures and films presented by its television programs. Disney is famous for its high-quality cartoon and films but has massively joined the music industry to produce high-quality music videos (Elberse & Cody, 2019). On the other hand, Netflix has stormed with effective video streaming services that have made it become the best-rated video streamer in the US. These companies offer different services but are in the same bracket of entertainment with the same shared market ground. In 2019, Disney announced its move to join video streaming. So, the question remains, can Disney catch Netflix? This discussion focusses on the current progress of the two companies, how they are fairly competing, and the analysis of their current progress and strategies.
Disney is a big company that has amassed over $130 billion in its total stock. Disney took a bold stake by investing in Hulu, which has seen it build significant confidence in video streaming. Hulu had gained over 25 million subscribers in the US, of which most of them were paying for the subscription. It was good in streaming television programs, which were mostly one hour after being aired. The dystopian drama the handmaid’s tale gave it a lot of popularity in the industry. Through advertisements, Hulu gained around $1.5 billion in revenue but had huge losses in 2019. His acquisition of BAMTech was another big move that saw Disney progress at a high rate. Iger increased sports option in the streaming section with a subscription saw the company accumulate over $650 million that year. The launch of Disney + has made the company gain a lot of competitiveness. Additionally, the launch of this strategy has made Disney become a potential threat to Netflix. However, the threats to new entrants in the market are moderate. Netflix has many years of experience in video streaming. With this kind of capability, t has become very difficult for new companies to enter the market. With these kinds of barriers in the market, it has become very difficult for Disney to compete with video streaming.
Part 3: Analysis
Threats of new entrants
Disney has a unique niche in the entertainment industry. It is extremely challenging for the new players to start operating in the industry, and this is because of the high cost required to start producing content. Both Disney and Netflix have launched streaming services, which gives the two companies a unique advantage over other companies that would wish to enter the industry. Disney would catch Netflix through effective strategies such as offering new value propositions to its loyal customers.
Bargaining power of suppliers
Additionally, the industry is much diversified, and companies can get raw materials from various suppliers. Besides, for both Disney and Netflix, the suppliers have a strong influence on prices because the distribution of content requires effective negotiations where the suppliers often have an edge. In the effort to catch Netflix, Disney should ensure an effective supply chain is established with different suppliers so that that the switching cost from one supplier to another may be lower.
Bargaining power of buyers
Most often, the buyers in the entertainment industry have high bargaining power. Both Disney and Netflix depend on customers to boost their operations, and the companies have to meet the demands made by their customers. Failure to which the customers can switch to other firms offering similar services and products. For Disney to increase its competitiveness over Netflix, the company should then provide its customers with quality services so that they cannot switch to other competitors.
Threat of Substitute
There only a few substitutes for products that are offered by Disney and Netflix. However, the available services available can meet the needs of the customers in different ways. Disney is required to implement service-oriented strategies that can help the company meet the customers' needs (Porter, 2008). This would help retain existing customers and attract new potential customers.
Rivalry among existing firms
There is an intense rivalry among the key players, between Disney and Netflix as both companies try to outperform each other. In this case, Disney is required to consider differentiation as a critical strategy for defeating Netflix; this would make it possible for the firm to increase its market size and compete better.
The Porters five Analysis
Bargaining power of the supplier

Low

In the entertainment industry, video providers are the main source because other companies provide these services. Technology also assists companies in creating their original content.
Since Dis...