Hulu Alliances Essay
1.Describe the alliance partners. Characterize the market type as slow, fast, or standard cycle. The market type is a fast cycle market characterized by firms participating in number of networks for the purpose of production and distribution. Competitive advantages aren’t sustainable in fast cycle markets. Firms competing in fast cycle markets recognize the importance of speed, to get the product or service out there first.
2. Characterize the type of strategic alliance Hulu has become. Hulu has become a dynamic alliance. The same type as most firms in the information technology industry. Another example is the movie industry, an industry in which firms participate in a number of networks for the purpose of producing and distributing movies. In dynamic alliance networks, partners typically explore new ideas and possibilities with the potential to lead to product innovations, and entries to new markets.
3. In what type of market is Hulu competing? Hulu is competing in the streaming media market. It has a tough competitor which is Netflix. Unfortunately for Hulu, Netflix has been around a lot longer and has had plenty of time to build its partner base. The other problem for Hulu is its parent companies do not take Hulu seriously. Instead of giving programming to Hulu the networks lease the programs to Hulu’s competitor Netflix.
4. Why did this alliance form? List some competitive pressures that made this alliance a necessity for its partners.
5. What does the future hold for this alliance?