Costs of production, overall market, and recommendation

IV. Examine the costs of production for Netflix.

  1. a)  Analyze the various costs a firm faces, their trends over time, and how they have impacted your firm’s profitability.
  2. b)  Apply the concepts of variable and fixed costs to your firm for informing its output decisions. For instance, analyze how different kinds of costs
    (labor, research and development, raw materials) affect the firm’s level of output.
  1. Explore the overall market of Netflix.
    1. a)  Discuss the market share of the firm and its top competitors by providing details on current percentages for each firm and describing the trend
      over time. You might consider presenting the data graphically.
    2. b)  Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm’s future in the market.
    3. c)  Describe the market structure for this firm and analyze how this affects the firm’s ability to influence the market.
  1. Recommendation
  2. a)  Develop a recommendation for how the firm can manage its future production by synthesizing the data presented.
  3. b)  Suggest how the firm’s position within the market and among its competitors will allow it to take your recommended action.
  4. c)  Describe how the firm can sustain its success going forward by evaluating the findings from demand trends and price elasticity.
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