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Netflix and Amazon: David vs. Goliath?

In: Business and Management

Submitted By bisanders
Words 3790
Pages 16
Netflix and Amazon: David vs. Goliath?

Bianca Sanders
Tracy Carnevale
James Shaw

Abstract/Executive Summary
In this project I will provide general reports and evaluation on the tables that I previously received data on for Netflix and Amazon. Since Amazon is the powerhouse in this industry I am using them as the benchmark company. Netflix’s strategic and specific service offering has made them a force to be reckoned with. Netflix’s main strength is that it is a really good niche company that has certainly made themselves a household name over the years and obliterating competition along the way, Hollywood Video and Blockbuster are just two of their victims. One of their key weaknesses is that are highly indebted to creditors and this heightens their chance for bankruptcy. The purpose of this Analysis Application is to diagnose their reported figures from the eyes of an Organizational Development professionals’ perspective and provide some advice that could help them become a bigger household name in the future. Possible Organizational Development initiatives for Netflix would involve a debt reduction and an intervention that increases performance and their organizational capabilities.
Historical Information
Marc Randolph and Reed Hastings co-founded Netflix as a DVD rental by mail company in 1997. In 2002, Netflix went public, and in 2003, Netflix crossed the 1 million subscriber mark. Netflix began streaming content over the Internet in 2007, and today has over 16.9 million subscribers, most of which use Netflix streaming more than DVD. This subscriber growth translated into solid increases in revenues and net income. Revenue for 2009 increased 22 percent to $1.7 billion, and GAAP net income increased 40 percent to $115.9 million http://www.asiaing.com/netflix-2009-annual-report.html

Key Dates:
1997: NetFlix.com, Inc. is formed in California by...

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