Business Consultations
The success of Netflix in the States and the high growth of a number of new market entrants is becoming more widely known by a number of organizations, entrepreneurs and traditional video store owners worldwide. All of these people will need a web site and logistics system if they decide to enter this market.
Why would they buy a packaged solution ?
DVD Rental Solution has a focussed and proven business model. The benefits of licensing the DRS software, back-end logistics and business processes compared to starting from scratch are:
- It will get you to market faster
- It will give you greater certainty and less risk
- It will lower your cost
- The DRS business system is already fully tested under real commercial conditions
- The software has sophisticated features that will put you ahead of your competitors from the start. A summary of the features may be found at Appendix 2.
There are several sales advantages we have discovered from the interest we have had already from organizations in New Zealand, Holland (2) and UK.:
- we have a totally integrated system (web part, dispatch software , logistics , business processes and management statistics) , not just simple DVD rental web-site script (as many of our competitors have).
- our system, because of intellectual dispatch and logistic allow you to handle a large number of clients and operations per day, not just 500 or so as software from competitors
- system already implemented for big live DVD rental business (more then 5000 in/out operations per day)
- maximum functionality for such type of software, which allows you to use this software without upgrades in future.
- intellectual method of personalization and DVD stock improvement.
- warehouse logistics system connected with web part.
- advanced statistics for users and DVDs.
- flexible pricing model, which allow you to choose optimal start for your business.
- ability of IDE Group team to provide dedicated programmers cost effectively and to do customizations.
Market research has identified that a key success factor for dvdrentalsolution.com and the DRS system is on providing personalisation. The brand essence of DRS is an interactive dialog between the customer and DRS's movie guru. The guru is like the friendly video store guy who not only knows his videos, but takes a keen interest in what you have already seen and what sort of things you like to watch. He is always ready with a friendly word and a few astute recommendations.
Although DRS's focus is on the rental of DVDs, opportunities for expansion into the DVD sales market also exist. For example, the software system selectively enables subscribers to purchase the DVD they have rented simply by ticking the appropriate box on the web site. The ex rental price will be charged to the customer's credit card, and the next rental DVD from their list will be dispatched. The availability for sale and the price for each title are individually configurable in the computer system.
The main competition is from the video stores and from television movie channels. Direct competition will also appear. The best barrier to entry will be building a large customer base, coupled with a customer retention model based on the success of the interactive dialog branding strategy. Customers who have developed a personal relationship with the brand essence will be sticky customers. Indeed, the more use they make of the DRS system, the deeper will be the database of rental history and movie ratings. Therefore, the quality of the personal recommendations that the customer receives will be a compelling reason to stay with the service.
A further barrier to entry is the unusual parameters required of the logistics operation. Streamlining the logistics is a critical part of the cost structure of the business and as such needs to be finely tuned. The logistics are unique in that practically every stock item that is picked, packed and dispatched is also returned. The efficient handling of these returns which arrive back in essentially random order is not obvious. DRS has lodged a patent application to protect the new process for handling goods of this nature. This patent creates a competitive barrier for the DRS system.   |
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