Netflix : Case Study Analysis

The downturn of the economy has taken away many peoples disposable income and Netflix’s limited online library may have caused customers to question if it was worth it or not.

Netflix, Inc. is a U.S. based leading company that operates as an online movie rental subscription service provider who went public in 2002. Netflix initially started off as a DVD rental service through mail only, then later initiated streaming around 2007 in the U.S., and internationally around 2010. Netflix subscribers can instantaneously watch a series of movies and a variety of TV shows streamed from their website online to users TVs, and other devices. Netflix operates its business through domestic DVD, domestic streaming, and international streaming. Netflix subscribers typically pay $7.99 once per month for unlimited use of the website features. Netflix obtains their streaming’s from Amazon Web Services and other communication delivery networks for their streamed content and direct purchases from a nationwide network of U.S. shipping centers. Netflix Inc., headquarter is at Los Gatos, California. Two entrepreneurs Reed Hastings and Marc Randolph founded Netflix on August

First formed in 1991, Netflix has become today’s predominant video rental service. They offer a hybrid service allowing DVD delivery by mail as well as streaming movies and TV shows via their company website or access on 200 other devices. Their unique business process has netted them over 16 million subscribers and revenue around $500 million annually. The reason for their growing success can be attributed to a good business model and just as important, properly implemented systems. An extremely efficient supply chain management system (SCM) and customer relationship management system (CRM) have helped Netflix become the world’s largest video subscription service.

The purpose of this report is to analyze the internal environment of Netflix, Inc., within the Video Tape and Disc Rental industry. To begin

The following is a case study of Netflix, Inc. an American-based company that provides the streaming of online media to consumers in North America, South America, and parts of Europe. This case study will provide a brief overview of the company’s history along with four present-day challenges that the company will face as it tries to stay ahead of the competition. In its discussion of the present-day challenges that Netflix, Inc. faces the discussion will also relate the proposed challenges to the managerial challenges of globalization, diversity, and ethics. After each of the four anticipated challenges have been addressed then this paper will provide an analysis of the steps that Netflix, Inc. has already taken to keep the

After the creation of Netflix in 1997 by Reed Hastings and Marc Randolph, it has overtaken our society with the vast amount of usage. The amount of users has continued to rise with the development of faster computers and online streaming. In the beginning of the Netflix company, subscribers were only allowed to rent movies three at a time and have them delivered via mail to their homes. This initial start gave Netflix a huge boost in the movie industry because before this viewers had to go to movie rental places to rent movies.

In order for us to truly understand how far Netflix has come, we must first understand it’s history and how it all began.

Netflix was founded in 1997 by Reed Hastings and his fellow software executive Marc Randolph. Even though VHS was more popular than DVDs, Hasting guessed that the DVDs will get popular and this was an opportunity for them to win the market so they attempted a DVD-by-mail rent service which was an idea that Hastings got it from after paying a $40 late fee for Apollo 13 in 1997. This DVD-by-mail rent service without a subscription was not popular, so Netflix launched the subscription service with a free trail for a month on September 23, 1999 and found that 80% of customers renewed after the free trail ended. In 2003, Netflix turned its first profit as well as reached 1million subscribers. In 2007, when Netflix reached more than 6.3million subscribers, they started Internet streaming services. Reaching 20million subscribers by 2012 was the goal set by Hastings but, their lunch in Canada in September 2010 helped them to reach their goal early than they expected. Even more, when the entire movie rental industry experienced an 8% sales decline, Netflix able to increase their sales. Netflix’s first original TV series called House of Cards debuted in 2013 and help them to attain many subscribers as well as revenue. Now in 2016 Netflix has more than 75million subscribers in over 190 countries, which makes Netflix as the world largest online entertainment subscription service.

Reed Hastings (co-founded) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. As Netflix went public in 2002, shortly a year later their subscription reached the one million mark (Netflix Management, 2011). Recently, Netflix is recognized as one of the 50 most innovative companies, ranking number eight for “streaming itself into a $9 billion powerhouse (and crushing Blockbuster)” with 20 million subscribers (fastcompany.com, 2011). This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity. A will describes and evaluate Netflix’s innovation strategy, the specific

In the late nineties, successful entrepreneur and CEO Reed Hastings created Netflix, an online video retailer. The concept was designed to offer subscribers an online library of DVDs from which they could rent, for a flat monthly fee, a prescribed number of movies at a time and exchange them at their leisure. Once finished with the DVDs, the customers would return them via the postal service and receive their next batch of selected movies. All this was accomplished with neither late fees nor shipping fees. The primary goal of Netflix was to provide its large and growing subscriber base with a premier, filmed-entertainment service. By the end of 2004, Netflix had 2.6 million subscribers and although it experienced

When Netflix was established in 1998, it shook the whole video rental industry by delivering the services that customers actually wanted. It was not about the movies it had in stock, because these were the same with Blockbuster or any other established video rental business. To them it was about how customers can get the best out of what they had to offer.

1. How strong are the competitive forces in the movie rental marketplace? Do five-forces analysis to support your answer.

Many of their competitors have longer operating histories, larger customer bases, greater brand recognition and significantly greater financial, marketing and other resources than Netflix does. Some of their competitors have adopted, and may continue to adopt, aggressive pricing policies and devote substantially more resources to marketing and Web site and systems development than Netflix does. The rapid growth of their online entertainment subscription business since their beginning may attract direct competition from larger companies with significantly greater financial resources and national brand recognition. For instance in 2003 the extremely wealthy Wal-Mart used their online site to launch an online DVD subscription service, Wal-Mart DVD Rentals. With increased competition reduced operating margins may result as well as a loss of market share and reduced revenues. In addition, our competitors may form or extend strategic alliances with studios and distributors that could adversely affect our ability to obtain titles on favorable terms.

The case study “Equity of Demand: The NETFLIX Approach to Compensation” includes information regarding the company, named Netflix. The case study provides useful information regarding the organizational culture of Netflix. The case is usually associated with the practices of Human Resource Management. It shows how organizations like Netflix can come up with different strategies in order better keep the employees motivated and directed towards goal achieving behavior. It is extremely important for organizations running around the globe to find ways of keeping employees motivated and satisfied in order to increase employees’ productivity. Employees can be seen as backbone for any type of organization running around the globe. It is because the productivity of employees is directly related with the productivity of an organization. The better the employees perform the better the organization would be in terms of customer satisfaction, brand awareness, customer loyalty, profitability and so on so forth. Normally, organizations have different compensation plans to pay the employees for their efforts they make. For instance; some organizations would use money as a source of motivating employees. Such organizations will pay high amount

The arrival of Netflix and other streaming services have had an enormous impact on the Television and Movie industries. With these changes that have happened comes drastic opinions on economic utility. Economic utility is the amount of satisfactory a customer is granted from a product or service. On one hand you have the customer that would rather stay home and watch a movie on Netflix. On the other hand you have a customer that would go to the theatre to watch the newest movies. These are the movies that people on netflix can’t experience yet. In this project I am going to discuss the impact that Netflix has had on the movie and television industries. There are four different variables of economic utility that have evolved with the arrival of Netflix. These include product form, time, place, and product possession.