Competitive Strategy Essay Example | Topics and Well Written Essays - 250 words

Competitive Strategy - Essay Example The offshoot is that film companies or online retail sites such as Amazon.com can afford to analyze each consumer data and provide specific services and product characteristics that meet his profile requirements. The processes involved take a few seconds to finish due to the sheer speed of today's broadband technology. The data generated by Internet technology allows movie distributors to tailor their offerings according to several variables such as the demand, the availability, popularity, and other factors that are revealed in the individual client data. It has become easier, hence, for film companies to introduce price formation, price differentiation and price bundling (Meier and Stormer 2009, 21). The efficacy of the Internet as a film-selling platform is underscored by the research that found about 121 million Internet users per month streamed or downloaded video in the United States back in 2007 and that this was expected to swell to 165 million by 2011 (Plunkett 2009). Anothe r important dimension to e-commerce is the benefit brought about by the digitalization of films. As films are compressed into digital files, Internet users can download them easily besides buying hard copies such as those in DVD and Blu-ray formats. As a result film distributors can now offer different products and could package films either for sale, for rent or for subscription (OPEC 2009, 45).