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INTERSECT: McDONALD’s
Q1: What company has stores in most of the rural areas of the country?
Other than Wal-Mart (competitor), the next best thing is McDonald’s
(complementary). With over 25,000 stores nationwide, McDonald’s has
influence and representation throughout the largely-rural areas of
America.
What is it worth for Netflix to be able to have large numbers of its customer
base be able to return rentals at pre-existing, secure locations, having
these video’s returned bulk rather than on a video-by-video basis?
Consider the example:
In the small town of X, Y miles from the closest Netflix distribution center, a
population of Z continue. Movie Gallery and Hollywood video have
representation in the surrounding areas, but Netflix has a low customer
base in this area. Increased visibility to this area can only come through
increased advertisement, either through referral or through paid
campaigns. The latter is an income-taxing expense. The former is a
problem of circular logic (e.g. in order to increase a customer base, one
must first increase the customer base in order to refer others in market).
Full DVD holding stations can be collected via UPS/USPS and shipped
back at a cheaper rate pound for pound.
I guess the only unanswered question is, “Would you like a movie
subscription with those fries?”
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