NetFlix web based business was established a year ago and wanted to attract movie rentals through the internet. With VHS movie rentals at a cost of $4.00 plus shipping and handling it wouldn't have been a profitable business. However; the use of Digital Video Disks (DVDs) as an alternative to VHS movie rentals, plus the shipping and handling cost of .55 cents each, made this business a tremendous success.

A customer who wants to rent a movie can search the web at: www.netflix.com and can order the movie rental of their choice from this site. If the customer chooses not to rent a movie but would rather purchase the movie of their choice they can visit www.Amazon.com.

With any new enterprise there are no guarantees, there are advantages and disadvantages to every situation. When you order from the web you may find that you may have questions, or you need to check the status of the movie. What we are looking for in a web-based business is the availability of technical support, customer support, telephone service and questions and answers.

Some advantages I see is the information technology from direct transactions. From a business stand point you can sell customers names to other business which in turn can give your business either a kickback on purchases or free advertising benefits on their web page. You want your product known on the internet and using another web page as a connection will drive business toward you. Some of the disadvantage is the lack of phone support. There will be times when you will need to actually talk with someone and there may not be anyone available when needed.

From the book by James A. O'Brien, Introduction to Information Systems, ninth edition, page 5; Visit the NetFlix web site at www.netflix.com. Search for yourself and see what amazing movies are available for your viewing. This web site is extremely user friendly and you will find it is most helpful. Why buy movies when you can rent them for a fraction of the cost. Order now from the comfort of your own home.

NetFlix may want to generate more business. The best way I see to do this is to reward your customers for their patronage to your store. NetFlix may want to consider that if a customer rents 10 movies from them, than the next one is free and to top it off throw in a bag of popcorn. A happy satisfied customer will always talk about the company and they will spread good comments about the business and business will expand and grow.