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Case Study 14: The Netflix Rollercoaster

Group Members: De’La Mayers, Michawl Rivers, Karin Skelton, Shan-Shan Yu

1. Explain Netflix’s marketing strategy. Can it sustain its competitive advantage? Why or why not?

2. How has their strategic change and rapid reversal affected their customers? Do you believe this situation is short-term public relations nightmares or a long-term reversal of fortune?

Strategic change affected their customers deeply because they thought the business plan to change things would benefit them greatly (over confident) but in reality it didn't. Once they realized they messed up they tried to quickly fit the solution with some of the old ways but again it failed. I personally believe it it a short term public relations nightmare, mainly because I have a Netflix account and besides some of the movies and shows I like to watch aren't on there I am super happy with there services. Anyone that has been a customer recently or for a long term I'm sure would agree they are satisfied.

3. Perform a SWOT analysis for Netflix. What are its biggest threats and which opportunities should it pursue?

POSITIVE | NEGATIVE | | | STRENGTHS: | WEAKNESSES: | | Innovative - quick service | Two separate entities (Qwikster & Netflix) | INTERNAL | No late fees, keep as long as you like | Same monthly fee for Disc & Streaming Service | | Automatically mail next video in queue upon return video or videos | Charging separate fees for Disc & Streaming Service | | Return envelope provided | | | OPPORTUNITY: | THREATS: | | Internet Unlimited Streaming | Competitors (RedBox) | EXTERNAL | Platform usage (TiVo, Xbox 360, Playstation3) | U.S. Postal Service shut down 100s of local branches | | Charge separate fees for Disc and Unlimited Streaming | Pay-per-view through cable

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