...Executive Summary Currently, Redbox does not have a mission or vision statement out for the public. This is a problem since the mission and vision statements are an important aspect of a company. However, in their 2010 annual report, I did find out that one of the goals of Redbox is to be able to achieve satisfactory availability rates to meet consumer demand while also maximizing Redbox’s margins. Nonetheless, Redbox should provide its customers and the public with mission and vision statements. My recommended mission statement can be found in Exhibit 1. Redbox has been successful renting DVDs ”on-the-go”, however, just like the convenience drove customers to Redbox kiosks, new technology can drive them away. The upsurge of online streaming seems to be the new “thing”. In order to combat this problem Redbox needs to develop a streaming business that can compete with the likes of Netflix, Apple and other rivals (Redbox rivals can be found in Exhibit 2). If Redbox can accomplish this task, it will give Redbox further growth expansions providing them with a competitive advantage. Situation Synopsis (extended SWOT) A quick SWOT Analysis lays out Redbox’s standing: Strengths Weaknesses Cheap Rental Prices $1.20+tax Limited only to New DVD Releases More clients because of No membership fees Maintaining physical stock Various Locations Poor advertising 1st of its kind Limited functionality of machines Offers free DVD promotion rental 28-day delay of new...
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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 conscious...
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...years that the company has been in business. Blockbuster initially provided home videos and video games rentals and throughout the years added DVD rentals, DVD by mail, streaming, video on demand and Cinema Theater. The company merged with Viacom in 1993, but was unsuccessful so Viacom bought Blockbuster for $8.4 billion dollars. Blockbuster also moved business across the globe into the United Kingdom and became the number one video store in the United Kingdom. In the year 2000 Blockbuster turned down the opportunity to purchase Netflix which has become one of the biggest on-demand internets streaming media available to viewers across the globe. Blockbuster was at an all-time high in sales in 2004 employing over 60,000 people with over 9,000 chains of stores. From 2003 to 2005 Blockbuster loses 75% of its market value as competition increases from the likes of Netflix and Redbox. (Marcus, Schaefer 2011) By 2010 the competition from Netflix drove sales for Blockbuster down causing the company to suffer and file for Chapter 11. Globalization may be defined as the integration of the world’s people, firms and government (Green n.d). Technology has expanded and made everything assessable via internet, which we can now be accessed through computers, laptops, tablets, cell phones, and game systems. With laptops, tablets and cell phones being so mobile, it gives people the opportunity to look at anything on the internet, anywhere at any time which lessens the need of going to...
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...Background Netflix is an American provider of on-demand internet streaming media and flat rate DVD-by-mail that was established in 1997 in Scotts Valley, California by Marc Randolph and Reed Hastings. The concept of Netflix came to fruition when Hastings was strong armed into paying $40 in late fees after returning a movie well past its due date. Hastings’ initial investment of $ 2.5 million was to be used as start up cash for Netflix. The Netflix website was launched in April of 1998, employing a mere 30 employees and offering a limited selection of 925 movies available for rent via an online pay-per-rental model costing $4 per rental plus $2 shipping and late fees applied. In September of 1999 the month subscription concept was introduced, thereby eliminating the pay-per-rental model in early 2000. Netflix built a reputation on their business model of flat-free unlimited rentals without due dates, late fees, shipping and handling or per title rental fees. Netflix had their initial public offering (IPO) on May 29, 2002 selling over 5 million shares of stock at $15 a share and in June of the same year Netflix sold an additional 825,000 shares of stock at the same price. By 2005 Netflix had grown substantially, they were now offering over 35,000 title films and they were shipping a million DVD’s a day. In 2007 after delivering its billionth DVD Netflix began moving away from the business model of mailing DVDs and introduced video-on-demand via the internet. In September...
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...the income decreases for whatever reason, they will tighten the reins on spending which will results in fewer sales. This paper will analyze some of the things that have led different companies to fail and to succeed, and then how they try to apply the lessons learned to avoid repeating the events and strategies that led to failure. Part 1: Failed Business Analysis – Borders Books Business Failure Analysis Former Executive of Borders, Andi Lobdell (2012) states, “As a former executive of Borders, I noticed media coverage consistently discussed missing the digital revolution as the core reason behind the Borders’ bankruptcy and liquidation, but the real question on everyone’s mind is why the company got off track (Borders bookstore mission tab).” It seems that Andi along with many other former executives and managers of the Borders Books family agree that mismanagement within the...
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...INTRODUCTION Netflix is an Internet based organisation that provides online streaming and DVD rentals to customers all over the world. Founded in 1997 by Marc Rondolph and reed Hustings Netflix reached 27 million subscribers at the end of January 2013.In the beginning when DVDs first came out to the market the CEO and one of the founder OF Netflix Reed Hustlings take this as an opportunity, The plastic disc small size and light weight make it cheap to send it through mail. Netflix takes advantage of the US postal services and send rental DVDs to customers through mail and accept returns the same way. With time Netflix has evolved into a company with reputation of low charge, unlimited movies without a due date, no late fees shipping or handling fees. Netflix then makes it more easier for costumers by introducing the online streaming options to watch movies at their on time when ever they are free. The online streaming allows subscribers to browse by many different categories, such as moods, qualities, story line, release dates, music, and cultures. Netflix search features are highly comprehensive making finding a film very relaxed and fun. If someone wants to watch a specific show but does not seems to remember the name of show it can be easily lookup by the starring actor. After selecting a title the online database of Netflix shows a DVD case and details about all the actors and actresses staring in the film/show. Environmental scan of Netflix. Internal Analysis Netflix vision...
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...Innovative Companies Apple is undoubtedly one of the most innovative companies of our time and has managed to set the bar very high for their competitors. It is not surprising to see this company secure their position in first place as the most innovative company of 2011 after being the third most innovative company the year before. The mission statement declares, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad” (Apple, 1977). Apple has had multiple innovation streams throughout the years that have sustained a leading competitive edge in the market. Apple has managed to release multiple lines of products showcasing their ability to lead the market in technological innovation. Even though there has not been any major change in their line of handheld products, Apple constantly introduces incremental changes to their market that have lowered the cost of many of the newer products, all while improving their function and performance. Fast company’s reason for Apple landing in the first place is “for dominating the business landscape, in 101 ways” (Fast Company, 2012). I was not aware of how involved Apple is in the business world until I went through the list of the aforementioned...
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...McKinney, Texas, Blockbuster and founded in 1985 (Blockbuster Corporate, 2012) and it ushered in a new era as far as video rental retail industry was concerned. The company gave birth to video rental places that had significant amount of movies under one roof (the first store had 8,000 movies) and were not associated with bad movies or bad neighborhoods (Greenberg, 2008). Initially, the company’s strategy was to expand aggressively and the leadership defined Blockbuster’s vision to become McDonald’s of the video rental business. Referring to the company leadership’s ambitious goals, Greenberg writes: The Blockbuster strategy was simple – pump as much money as possible into buying local and regional chains while keeping centralized control over the look and feel of the individual stores. By the VSDA convention the following year, Blockbuster had acquired two other chains and its more than 250 stores dotted the country. At the convention, Huizenga’s marketing executive Tom Gruber outlined vision for the future of the company, and it was expansive. Gruber had spent eighteen years working for McDonald’s before joining Blockbuster, and both he and Huizenga were explicit: Blockbuster wanted to be the McDonald’s of home video (the comparison was so deliberate that at one trade show presentation, huge photographs of Huizenga and McDonald’s leader Ray Kroc were projected side-by-side). (p. 128) So, Blockbuster came into being with a big bang and a unique presentation...
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...growing market space within the DVD market and formed the company Netflix in Scotts Valley, California with $2.5 million in startup cash. The company was formed with the idea that customers could utilize the company’s web site to rent DVDs and have them delivered to their home. The inspiration for the company came from Reed Hastings after he acquired $40 of overdue fees on an Apollo 13 movie rental from Blockbuster (A brief history of Netflix - CNN.com, n.d.). The business model for Netflix was created upon the methodology that customers will receive the movies of their choice in the mail while never incurring late fees. (Abraham, 2012 p. 1.8). Netflix added customer value and convenience by using processes already in place such as the US Postal Systems to capitalize on the delivery of their product. In this paper, I will outline a SWOT analysis of Netflix as well as prepare a strategic plan to grow the business over the next three years. Using SWOT analysis and strategic planning an organization performs organizational forecasting similar to advice given to a US hockey player once made concerning hockey, “skate where the puck is going to be, not where it has been.” (Schwartz, n.d.) Strategic planning is a systematic way of planning for the organizational future but upon the data based decisions from the SWOT analysis. The distinctive aspect between Netflix and their competition rests with the concept of Netflix bypassing the physical storefront retail route and dedication the...
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...provides insight into best business practices. Examining a failed company, Blockbuster, and a successful company, Intuit, offers an opportunity to learn from managerial mistakes and triumphs. Failure and Success Blockbuster Inc. is an example of a failed business. Their updated mission, objectives, and vision were altered too late to keep up with the changing demand for convenient internet streaming videos. The company stated their “mission is to provide our customers with the most convenient access to media entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, by-mail, vending and kiosks, online and at home. We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience" (Farfan, 2014 Blockbuster's Mission Statement). Their vision was to “provide our customers with the most convenient access to media entertainment delivered through multiple channels…. Offer customers a value-prices entertainment experience… broad product depth… with local neighborhood convenience” (Blockbuster Goes Bust – Outfoxed by Redbox, Licked by Netflix," 2014, para.8). The updated objectives were reasonable but were implemented too late to save the company. Although Blockbuster had a strong brand name, large market share, had been in business for a relatively long time, a positive financial situation, and many retail stores...
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...provides insight into best business practices. Examining a failed company, Blockbuster, and a successful company, Intuit, offers an opportunity to learn from managerial mistakes and triumphs. Failure and Success Blockbuster Inc. is an example of a failed business. Their updated mission, objectives, and vision were altered too late to keep up with the changing demand for convenient internet streaming videos. The company stated their “mission is to provide our customers with the most convenient access to media entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, by-mail, vending and kiosks, online and at home. We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a specialty retailer with local neighborhood convenience" (Farfan, 2014 Blockbuster's Mission Statement). Their vision was to “provide our customers with the most convenient access to media entertainment delivered through multiple channels…. Offer customers a value-prices entertainment experience… broad product depth… with local neighborhood convenience” (Blockbuster Goes Bust – Outfoxed by Redbox, Licked by Netflix," 2014, para.8). The updated objectives were reasonable but were implemented too late to save the company. Although Blockbuster had a strong brand name, large market share, had been in business for a relatively long time, a positive financial situation, and many retail stores...
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...Netflix Christina Buggar Columbia Southern University Netflix Netflix, Inc. is the world's leading DVD (Digital Video Disc) rent-by-mail company. The company has over 1 million subscribers who pay a monthly fee of $19.95 for unlimited rentals, considering they have no more than 3 discs out at one time. The company offers more than 15,000 titles and maintains an inventory of more than 5 million movies. For faster delivery, Netflix has opened more than 20 shipping centers around the United States, and most movies arrive a day or two after ordering them online from the company’s website. More than a third of the publicly traded company is owned by Jay Hoag's Technology Crossover Ventures (Netflix, Inc. - Company Profile, Information, Business Description, History, Background Information on Netflix, Inc., 2012). Netflix was founded in Scotts Valley, California, in August of 1997 by Reed Hastings and Marc Randolph, both veteran "new technology" entrepreneurs, to rent and sell DVDs all over the Internet. Reed and Marc were and are very successful business men who have started from the bottom and have built a business that has climbed the charts. When these two first started the company, they had to experiment with the DVD shipment until they found an easy but yet cheap way of sending out the movies to customers. The firm had to experiment with over 200 packages until they finally found one that was suitable for the company and customers. The package is a clear case with a label...
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...Company Overview Netflix has given rise to the new way viewers access their television. The company provides its customers a mail DVD and/or streaming media service for a low monthly subscription. The company’s successes is attributed mostly by its site, Netflix.com. The site allows audiences to view their media through access to a library of near unlimited movies and shows. Business Strategy Netflix’s biggest advantage over its competitors is that it has offered its own largely successful shows, such as House of Cards and Orange is the New Black. These shows are not released like the typical week to week basis, but rather each season is released all at once. "What we’re seeing actually is the breakup around traditional broadcasting models around genres as much as anything else,” says Matt Locke of Story Things Media Company. [1] This new format of viewing shows has given rise to what is known as “binge watching,” where consumers watch entire seasons at a time. Before this, viewers would have to patiently wait weeks at a time to watch their favorite shows and would be out of luck if they happened to miss it. Netflix is constantly pursuing new ways to offer the customer more and providing a first in the market. On January of 2015, Sony and Netflix partnered to release The Interview movie after only one month of its release. Global Presence "It’s going to take another couple of decades to disrupt the current business models, but I would never bet against audiences changing...
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...I. Current Situation a. Current Performance b. Strategic Posture i. Company provides a general strategy statement. Not publically available vision statement or mission statement ii. They are in the internet subscription business. They are in this so users can instantly watch movies or TV programs iii. The objectives is to maximize member satisfaction and month to month subscription retention. Corporate objectives: customer loyalty, profits, growth. Busniness objectives- customer service Functional objectives- Marketing and sales. They are all consistent with each other. They all have one goal and that is to be profitable and make sure the customers are satisfied with their business. iv. Strategy- pursuing new content deals and streaming rights to current season shows. Also looking at new ways to improve the subscriber’s experience. Encouraging multiple accounts in one household. v. Privacy policies, code of ethics, insider trading policies. All the policies are consistent with each other. They all want their employees and board members to act ethically. They want their nonpublic information to stay private and prohibit insider information trading. vi. II. Corporate Governance a. Board of Directors i. Mostly External members. Jay Hoag- Technology Crossover Ventures. Timothy Haley- Redpoint Ventures. Ann Mather- MGM holdings Inc. Leslie Kilgore- Linkedln Corporation. Richard Barton- Zillow, Inc. A. Battle- Aspen Institute. Reed Hastings- Chair of board ii. Significant...
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...Netflix Analysis Netflix, Inc. is an internet television network. The company derives revenues from monthly subscription dues. Its members can watch as much as they want, anytime, anywhere, on nearly any internet connected screen. Members can play pause and resume watching, all without commercials or commitment (Netflix, 2014). Netflix does not have an actual mission statement, however, according to Reed Hastings, founder and CEO, their mission and vision is “to grow our streaming subscription business domestically and globally, continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interface and extending our streaming service to even more internet-connected devices, while staying within the parameters of our consolidated net income and operating segment contribution profit targets” (Hastings, 2014). Nine company published values provide further clarification about the principles which guide its employees in their daily decisions and activities. Those company values as published are: judgment; productivity; creativity; intelligence; honesty; communication; selflessness; reliability; and passion. Hastings has expressed a clear vision for the future of Netflix, which is to become the best global entertainment distribution service, licensing entertainment content around the world and creating markets that are accessible to filmmakers, thereby helping content creators around the world to find a global audience. The...
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