Netflix Case Study

In: Business and Management

Submitted By carldechamp
Words 1804
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Executive summary

The report starts by identifying creativity and innovation as the key to Netflix past success as Harold has consistently shown in his decisions throughout the history of the company taking bold action to chase un-ventured routes to satisfying customer needs.

The essence of the report however, is to highlight the issues surrounding the current technological advancements in the DVD rental market now that VOD has become a feasible and realistic platform that can be supported. Netflix is faced with a multitude of options and my argument is that it must base its decision upon the long term strategy of the business.

There is still a growing demand for DVD’s in their physical format proven by their increasing rate at which Netflix acquires new prescriptions to their existing DVD postal service and this is predicted to continue to grow for many years yet. Netflix currently has 45 million copies in distribution whilst it holding a huge investment in its offline, sorting and distribution network. Therefore the company does not want to risk cannibalizing its core business at the expense of innovation. Although I think the switch over to streaming content via VOD is where Netflix should be heading, I feel it’s vitally important to place an emphasis upon gradual integration.

It is proposed that Netflix enters the VOD market by opening a new subsidiary company reducing the risk to its existing operations whilst testing the market and venturing into foreign markets to maximize growth potential. Other potential markets include offering its services via smart phones and other devices whilst it should use VOD streaming to concrete its offering as a major distribution channel to independent film productions.

These recommendations fit the original aims of the company in line with its mission statement to promote lesser known independent and out of…...

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