............................................................................3 1.1 Pure Software to Netflix................................................................................................3 1.2 Strategic and Behavioural changes................................................................................4 1.3 Netflix's Attitude...........................................................................................................4 1.4 Applications and Conflict styles...................................................................................5-6 1.5 Epix Deal.......................................................................................................................6 2. International Market...........................................................................................................6 2.1 Improvements................................................................................................................ 6 3. Leadership Paradigms........................................................................................................7 4. The Big Five......................................................................................................................7-8 5. Iowa Principles practise..................................................................................................... 9 6. Behavioural Traits...................................................................................
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...| 2012 | | Prof. Gervais Victoria Skarbinski | [Netflix] | A case analysis on the movie rental company Netflix. | The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system. Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent. Netflix’s strategy so far has included offering various plans that incorporate unlimited streaming to a viewing device from the internet and a mail order system that sends physical DVD’s to the customer for an unlimited amount of time without any additional fees (so long as they still have a subscription with the company). With consumers moving toward the digital era, which Netflix has embraced, Netflix has to focus on continuing to be an innovative leader in the movie rental industry. 1. Identify the key elements of Netflix’s strategy. What competitive advantages is Netflix trying to achieve? Netflix strategy consists of at least six major elements, but its key elements consist of: * Providing subscribers with a comprehensive selection of DVD titles. * Giving subscribers a choice of watching streaming content or receiving quickly delivered DVD’s by mail. * Offering nine different variations of their service with subscription costs ranging from $4.99 to $47.99 with a free one month trial on any service. One of the most basic features that...
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...| 2012 | | Prof. Gervais Victoria Skarbinski | [Netflix] | A case analysis on the movie rental company Netflix. | The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system. Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent. Netflix’s strategy so far has included offering various plans that incorporate unlimited streaming to a viewing device from the internet and a mail order system that sends physical DVD’s to the customer for an unlimited amount of time without any additional fees (so long as they still have a subscription with the company). With consumers moving toward the digital era, which Netflix has embraced, Netflix has to focus on continuing to be an innovative leader in the movie rental industry. 1. Identify the key elements of Netflix’s strategy. What competitive advantages is Netflix trying to achieve? Netflix strategy consists of at least six major elements, but its key elements consist of: * Providing subscribers with a comprehensive selection of DVD titles. * Giving subscribers a choice of watching streaming content or receiving quickly delivered DVD’s by mail. * Offering nine different variations of their service with subscription costs ranging from $4.99 to $47.99 with a free one month trial on any service. One of the most basic features that...
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...In order to assess the attractiveness of the video rental business, the industry necessitates an evaluation through the analytical lens of the five contending forces of competition. First, there is a significantly low threat of new entrants mainly due to high barriers of entry and economies of scale. For example, there are substantial capital requirements in construction of fixed facilities in strategic locations in order to distribute DVDs; there are also unrecoverable expenditures in up-front R&D and advertising costs, both of which are emphasized in order to differentiate service and build brand equity. There are also government policies to reinforce the barrier. For example, in addition to its red envelops, Netflix has patents to protect essential characteristics of its business model such as its “Max Out” and “Max Turns” approaches. This creates cost disadvantages through a greater learning curve for new entrants, especially when competing against algorithmic programs such as Netflix’s CineMatch, which becomes more effective at recommending movies as more subscribers provide feedback. Another governmental restriction is seen specifically with Amazon.com, whereby distribution channels are choked out in the US unless Amazon sacrifices its competitive advantage of avoiding sales tax. The second force of competition, the bargaining power of the supplier, is assessed as moderate to high. The movie studios and independent movie distributors provide the rights to distribute...
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...Submission: September 25, 2015 Title of Assignment: Netflix Case CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: Gabriel Behar ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments: Executive Summary Problem Statement Competitors for Netflix are on the rise ad market share position can be on risk Analysis Although Netflix is the world leader on internet television, recent issues have being worrying its investors. The fall of stock prices and intensification of competitors is becoming an issue that have to be address before it becomes harder to deal. With a maturing industry, innovation becomes tougher and more difficult to achieve. For Netflix, innovation is the key to success and to continue being number one in the industry. Alternatives Solutions that can assist Netflix to maintain its advantage over competitors * Focus on the areas where current success is greater and expansion can be possible * Make good usage of marketing ideas and resources Recommendation Production and marketing of Netflix original content would be the best approach. The success...
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...COMPANY CASE Netflix: Disintermediator or Disintermediated? PRESENTED BY: DANIEL RICARDO ORDOÑEZ 201312625 MARIA LUCIA PACHON 201311104 YALILE KATHERIN ROA 201313192 THE SABANA´S UNIVERSITY BUSSINESS ADMINISTRATION MARKETING GROUP 1.2 2015 1. BACKGRAUND Netflix is a company that was created from the need generated by getting movies to watch from the comfort of the house, although at that time the companies who led this market were Blockbuster and Redbox , but to get them you had to approach a local Blockbuster or go a supermarket or store nearby where a dispenser Redbox addition these had a specific time to be returned, if not met you could have a fine is found, Netflix identify these weaknesses in them and became its advantages as well when you wanted to watch a film could access the internet make your Netflix account and solicitabas the list of movies you wished to see them received and send you the movies , these could be the time you wished and return , so Netflix quickly gained the lead. But with technological advancement and different devices that were created Netflix realized that people prefer to search online movies so they should not leave home or wait for them to arrive , so the company decided to create direct platform on which there are not only movies but also get series , plus Netflix decided also be associated with the different technological advances for these Netflix had already built into the device as we see when we buy a PlayStation...
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...Juan Carlos Delgado Alvarado A01204262 ITESM CAMPUS QUERETARO NETFLIX CASE 1. What forces are driving change in the movie rental industry? I think that the driving forces that change the movie rental industry are technology and consumers. First technology , cause nowadays a company that doesn’t use technology as the main way of improvement or development, will not succeed. Every day new things are released , discovered or invented, so companies in the movie rental industry have to adapt to change as soon as possible. in order to have a really strong core competence , Netflix developed Proprietary Software that allows members to do some things such as scan movie length, rate movies, recommendate them , and also can be installed in devices by leading electronic companies; a really friendly system, attractive and well supported. Then consumers , because they have changed their preferences: tendencies and some other factors have changed the way in which consumers used to rent a movie . And now in Netflix consumers can find what they want at the best price , so competition is very fierce. Every year the users of Netflix has increased, so consequently its revenues. 2.- What type of competitive advantage is Netflix trying to achieve? Netflix is using a best cost provider strategy because its giving to customers more value for what they are paying, best platform, more movies, more series , more devices where it can be played. Also by offering each level of the selling...
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...| 2012 | | Prof. Gervais Victoria Skarbinski | [Netflix] | A case analysis on the movie rental company Netflix. | The major portion of revenue that Netflix derived came from its unlimited streaming plans that included either one, two or three DVD’s out at a time from the mailing system. Netflix began as a DVD rental provider that allowed customers to use the internet to select the DVD’s they wanted to rent. Netflix’s strategy so far has included offering various plans that incorporate unlimited streaming to a viewing device from the internet and a mail order system that sends physical DVD’s to the customer for an unlimited amount of time without any additional fees (so long as they still have a subscription with the company). With consumers moving toward the digital era, which Netflix has embraced, Netflix has to focus on continuing to be an innovative leader in the movie rental industry. 1. Identify the key elements of Netflix’s strategy. What competitive advantages is Netflix trying to achieve? Netflix strategy consists of at least six major elements, but its key elements consist of: * Providing subscribers with a comprehensive selection of DVD titles. * Giving subscribers a choice of watching streaming content or receiving quickly delivered DVD’s by mail. * Offering nine different variations of their service with subscription costs ranging from $4.99 to $47.99 with a free one month trial on any service. One of the most basic features that...
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...Netflix Executive Summary: This paper represents an overall analysis of Netflix (http://netflix.com). Netflix is one of the leading internet television networks with over 62 million subscribers in 52 countries (Netflix, 2015). It provides customers with online streaming for movies, TV shows, documentaries, songs, other digital media, and offers DVD and Blue ray rentals (Wessel). This paper will review the negative and positive points that Netflix is facing in the industry through: 1- Industry analysis (Macro analysis) 2- Competitive Analysis (Porter’s model) 3- Alternative considerations 4- Strategic recommendations Industry Analysis (Macro Analysis) Netflix is focusing on three major points regarding its industry: a- Shifting demographics within the United States b- Expanding its market to other countries like Brazil, Russia, India & China (ResearchOmatic). The shifting in demographics in the United States focused mainly on age distribution and racial diversity (ResearchOmatic). There was approximately 13.5% increase in the population of age 65 or higher, the Hispanic population increased by 15.8%, & Asian population went up to 10% within the years 2004-2008 (ResearchOmatic). On the other hand, Netflix has expanded and still expanding into other countries in the world: “Canada became the first foreign country to have live streaming on demand in 2010. Netflix entered the Dutch market in 2013; Latin and South America and the Caribbean in...
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... renting Movies and TV Episodes Reed Hastings, founder and CEO, launched Netflix as an online rental movie service in 1999. Netflix is a company that distributes movies and television by streaming online and mail delivery. There are eight different membership options to choose from each varying in number of DVDs rented out at a time. Netflix also offers to stream movies and television series directly from their website to different devices (i.e. Pc, Mac, iPad, iPhone, Wii, PS3). The over all goals for Netflix are simple: to build the world’s best Internet movie service and to deliver a growing subscriber base and earning per share every year. 1. Identify the key elements of Netflix’s strategy. What competitive advantages is Netflix trying to achieve? Key Elements of Netflix Strategy ! Providing subscribers with a comprehensive selection of DVD...
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...Case 1 Netflix February 14, 2013 Netflix doesn't have a mission statement available online, but at the following values were published on a related website from a conference Netflix held. * Becoming the best global entertainment distribution service * Licensing entertainment content around the world * Creating markets that are accessible to film makers * Helping content creators around the world to find a global audience We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. Netflix also published company values, the following values are listed below: * Judgment * Productivity * Creativity * Intelligence * Honesty * Communication * Selflessness * Reliability Passion This is also available from their website, which could be viewed as a vision statement for our purposes. "Our appeal and success are built on providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery." Step 2: Developing a mission and vision statement for Netflix. They need to focus on expanding properly without stretching their weaknesses too thin they also need to perform well in getting more tittles. Mission: Netflix provides the highest quality and advanced streaming content to an ever expanding, global market. All while Netflix is...
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...danderson@bentley.edu Office Phone: 781 891 2238 Class Times: Section 100: Monday, 7:30 - 9:50 pm Office Hours: For quick/easy questions, send me an email. For tough questions, career advice and other matters, face to face is better, and I’m happy to meet with you by appointment. Description: GS601 provides an enterprise-wide perspective on the management of information technologies (IT), software applications and the operational processes they support, and the data and knowledge that inform business processes and decisions. The course focuses on how IT professionals and non-technical managers work together to ensure that applications and data are aligned with organizational strategy and business processes. The cases and readings examine how companies in various industries use IT to serve customers well, manage operations efficiently, coordinate with business partners, and make better business decisions. A key theme -- IT as a double-edged sword -- reflects a central challenge: how to maximize the strategic benefits of investments in hardware and software, while minimizing accompanying technical and business risks. The course places equal weight on technical and managerial skills. Our primary objective is to help students prepare to be effective contributors to IT initiatives in partnership with IT professionals, including external service providers here and abroad. Course Learning Objectives: · Understand how information systems – comprised of...
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...staying successful. The company chosen to be discussed in this paper is Netflix. First, this paper will explain the specific key environmental forces created for opportunity for the company. Second, it will discuss five environmental forces and trends to influence the company’s marketing efforts and future product offering. Then, this paper will explain what differentiation strategy the company should undertake to encourage their target market over other competitors. Lastly, it will analyze lessons learned from the Geek Squad case study. Environmental Forces Netflix is a DVD rental and online streaming service. The key environmental force created for the company when they first started out is the DVD mail service. Before there was Netflix, customers had to go to rental stores such as Blockbuster to rent movies. One issue that customers would have is the stores running out of the movies they wanted or possibly not even carrying those movies to begin with. Shipping the movie gives customers more time and takes less energy than having to drive to the store to pick out what movies they want to watch. The founder of Netflix, Reed Hastings, foresaw the potential in the rental industry when he started the company. When Netflix first start they were only offered movies through the mail, but by 2007 they added online streaming to their services. Adding the streaming service created a huge opportunity for Netflix to succeed in the movie rental business. Purchasing Patterns...
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...Case 6: Netflix A. Summary “Since launching the company’s online movie rental service in 1999, Reed Hasting, founder and CEO of Netflix, had diligently strive to improve on the company’s service offering and better enable the company to outcompete its competitors. Hasting’s goals for Netflix is to build the world’s best Internet movie service to build the world’s best Internet movie service and to deliver a growing subscriber base and earning per share every year. In May 2010, Netflix’s strategy was producing impressive strategic and financial results. During the past five years, Netflix had emerged as the world’s largest subscription service for streaming movies and TV episodes over the Internet and sending DVDs by mail.” B. Analysis I. Strategic Analysis 1. Competitive forces in the movie rental industry a. Rivalry among companies: strong Netflix have to deal with rivalry from Blockbuster, Redbox, and video-on-demand providers. The battle includes many competitors and each of them is trying their best to attract the customer. Customer has many options and their choices are based on some factors: * Price: rent each DVD or buy subscription plan/ what kind of plans * Convenience: stream from your device or got DVDs then return * Variety of rental library: how big and how vary the company library is * Availability: customer who choose to stream movie over internet or VOD never face the situation when there are no available DVD to rent...
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...Movie retail industry includes such companies that rent DVDs, Blu-ray discs and even video games which are usable on home-based electronic equipment (Espedido Julian, 2010). Many companies are participants in this lucrative business and they include such companies as Wal-Mart, Netflix, Blockbuster, Intelliflix, Redbox and GameZnFlix among others. Both Netflix and Blockbuster companies are presently the leaders in the rental movie industry and therefore the major rivals in the rental movie industry. As to Blockbuster, it has a quite lengthy convention in the business. The Blockbuster has existed since the year 1985, even as Netflix entered its 12th anniversary this year. This gives Blockbuster an edge of existence over its close competitor Netflix. This paper intends to critically provide an in depth analysis for Arthur Thompson's case study entitled "Competition in the Movie Rental Industry in 2008: Netflix and Blockbuster Battle for Market Leadership." It will comb thoroughly issues like the trends which affect either negatively or positively the movie rental industry with utmost reference to Netflix and Blockbuster in respect to their fight for the market headship, scrutinize in detail the competitive movie rental industry environment, and by extension give detailed discussion on the use of both the SWOT as well as reasonable scorecard to evaluate Netflix's battle strategy for market leadership on the whole. The video rental industry (formally known as home entertainment...
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