個案資料

Roku Inc. was launched in 2008 as a spinoff from Netflix. Inc. The company sold streaming devices—tools that transformed standard televisions into smart TVs—and operated a free advertising-supported streaming television service called The Roku Channel. Throughout the 2010s, Roku Inc. dominated the streaming device industry. In late 2022, however, the company was facing several challenges. Increased operating expenses from recent investments in content creation, coupled with an advertising recession, had led to declining profitability. In addition, the company faced increased competition from established technology giants such as Google LLC and Samsung Electronics Co. Ltd., in addition to the entry of major US telecommunications leaders such as Comcast Corporation and Charter Communications Inc. To maintain its market share and drive profitability, Roku Inc. could enhance its advertising capabilities, continue pursuing aggressive negotiation tactics, prioritize geographic expansion, further expand its product line, or seek a buyer. The company’s management team had to make decision.

This case asks students to examine Roku’s current status from the perspective of the company’s management team. The case discusses options for Roku to survive within an increasingly competitive industry. After completion of this case and discussion of the assignment questions, students will be able to achieve the following objectives:<ul><li>Analyze industry dynamics using both Porter’s Five Forces and the value chain model.</li><li>Understand how a business can use a loss-leading product strategy to achieve profitability.</li><li>Examine cost leadership and differentiation strategies.</li><li>Define a potential competitive advantage by completing a value, rarity, inimitability, and organization (VRIO) analysis.</li><li>Evaluate strategic alternatives to enhance strategic alignment with a company’s competitive advantage.</li></ul>

• digital platform
• streaming
• business model
• product design
• service design