netflix case study

Running head: AN EVALUATION OF NETFLIX INC.

An Evaluation of Netflix Inc. Reuben Brukle BA! "#$ % OA % &trate'ic !ana'e(ent )rofe**or Carol +i(el,oc, &iena +ei',t* Univer*it  Nove(ber -/ -01

AN EVALUATION OF NETFLIX INC.

-

Mission and Vision Statement

 Netflix 2oe* not 3rovi2e (i**ion or vi*ion *tate(ent*. *tate(ent*. Rat,er/ it 3rovi2e* a 'eneral *trate' *trate' *tate(ent. 4,ile a 'eneral *trate' *tate(ent 2oe* 3rovi2e 'ui2eline* for o3eration* an2 'ro5t,/ it 2oe* not *ati*f t,e re6uire(ent* nece**ar for a (i**ion *tate(ent/ nor 2oe* it 3rovi2e a conci*e vi*ion for t,e future. 4,at follo5* are 3ro3o*e2 vi*ion an2 (i**ion *tate(ent* for  Netflix/ Inc. Vi*ion &tate(ent To entertain ever ,ou*e,ol2 on t,e 3lanet 5it, t,e 5orl27* 5o rl27* be*t be*t *trea(in' an2 8V8%b%(ail *ervice. !i**ion &tate(ent  Netflix i* a (ultinational entertain(ent co(3an 3rovi2in' *ub*cri3tion *ub*cri3tion *trea(in' an2 (ail or2er 8V8 *ervice. 4e *trive to offer our value2 *ub*criber* t,e lar'e*t *election of content an2  3ro'ra((in' available at co(3etitive/ affor2able 3ricin'. Netflix Netflix 5ill continuou*l a29u*t it* *trate' a* content i* increa*in'l 2elivere2 over t,e Internet an2 a* 8V8 : Blue Ra tec,nolo' tec,n olo' evolve*/ en*urin' cu*to(er7* 3reference i* acco((o2ate2. acc o((o2ate2. 4e 5ill 5ill a''re**ivel 3ur*ue t,e late*t an2 (o*t varie2 content/ e*tabli*,in' 3artner*,i3* 5it, 3re(iu( content 3rovi2er* in a22ition to  3rovi2in' ,i', 6ualit ori'inal 3ro'ra((in' to en*ure Netflix *ub*criber* *ub*criber* 5ill en9o t,e 'reate*t variet of televi*ion entertain(ent. Netflix ackno5le2'e* t,e value of it* 5orkforce an2 *trive* to 3rovi2e a *afe an2 re5ar2in' environ(ent for it* e(3loee* an2 *take,ol2er*. Netflix i* an et,ical co(3an an2 5ill re(ain *en*itive to cultural no r(* t,rou',out it* 'lobal ex3an*ion.

AN EVALUATION OF NETFLIX INC.

;

Mission Statement Components and Rationale for Component Inclusion

0< Cu*to(er* = It i* critical t,at cu*to(er* are ackno5le2'e2 in an  (i**ion *tate(ent> 5it,out cu*to(er* t,ere can be no bu*ine**. T,e Netflix (i**ion *tate(ent a22re**e* t,e value of it* cu*to(er* t,rou', it* co((it(ent to 3rovi2in' cu*to(er* 5it, t,e lar'e*t *election of content available/ (aintainin' an affor2able 3rice 3oint/ an2 en*urin' cu*to(er* are acco((o2ate2 via an inclu*ive variet of content 2eliver. -< )ro2uct* or *ervice = T,e 3ro2uct* an2 *ervice Netflix 3rovi2e* i* clearl e*tabli*,e2 in t,e  Netflix (i**ion *tate(ent. ;< !arket* = !arket* are a22re**e2 t5ice in t,e Netflix (i**ion *tate(ent. It i* e*tabli*,e2 t,at  Netflix/ a U.&. ba*e2 co(3an/ i* i* ex3an2in' into 'lobal (arket*. A22itionall/ A22itionall/ (arket* are a22re**e2 in ter(* of tec,nolo'. Netflix *ervice* t,o*e co(3ri*in' t,e 8V8 ?an2 Blue Ra< (arket a* 5ell a* t,e 'ro5in' (arket for online *trea(in'. "< Tec,nolo' = Netflix relie* ,eavil on tec,nolo' to 3rovi2e it* *ervice*. T,e (i**ion *tate(ent a22re**e* t,i* b convein' a co((it(ent to cu*to(er* u*in' *tan2ar2 8V8 tec,nolo'/ Blue Ra tec,nolo'/ an2 online *trea(in' tec,nolo'. It conve* a continuou* intere*t in (aintainin' it* tec,nolo'ical inclu*ivene** b *tatin' a co((it(ent to increa*in' online *trea(in' *ervice* a* 2e(an2 re6uire*. @< Concern for *urvival/ 'ro5t,/ an2 3rofitabilit = &uc, concern i* clo*el linke2 to tec,nolo'ical ca3abilitie* an2 *u3erior cu*to(er *ervice. B 3ur*uin' (utuall be neficial 2eal* 5it, 3re(iu( content 3rovi2er* an2 (aintainin' a co(3etitive co (3etitive tec,nolo'ical a2vanta'e a'ain*t co(3etitor*/ Netflix en*ure* it 5ill re(ain a relevant/ co(3etitive/ an2 3rofitable co(3an in t,e *trea(in' entertain(ent bu*ine**.

AN EVALUATION OF NETFLIX INC.

"

1< ),ilo*o3, = T,e 3,ilo*o3, convee2 conve e2 in t,e Netflix (i**ion *tate(ent i* in kee3in' 5it, t,e 'eneral *trate' *tate(ent t,e co(3an 3rovi2e*. It entail* 3rovi2in' *u3erior cu*to(er *ervice/ *u3erior content/ an2 (aintainin' a co(3etitive tec,nolo'ical a2vanta'e to en*ure Netflix re(ain* a lea2er in t,e entertain(ent bu*ine**. #< &elf%conce3t = Netflix i* able to conve conve  a ,ealt, *elf%i(a'e in t,e (i**ion *tate(ent  3rovi2e2. It bot, un2er*tan2* an2 conve* it* 2i*tinctive co(3etence ?entertain(ent  3ro'ra((in' on%2e(an2< an2 (a9or co(3etitive a2vanta'e ?content an2 inclu*ivene** of content 2eliver (et,o2*< < Concern for 3ublic i(a'e = T,ere are a nu(ber of re'ulator an2 le'al i**ue* involve2 5it, entertain(ent. T,e Netflix (i**ion *tate(ent conve* t,e value t,e co(3an 3lace* on e(3loin' et,ical *tan2ar2* an2 3ractice*. A22itionall/ A22itionall/ care i* taken to ackno5le2'e t,e  3otentiall 2ifference* 5it, 5,ic, culture acro** t,e 'lobe con*u(e an2 inter3ret entertain(ent. &en*itivit to cultural nor(* i* a22re**e2. a22 re**e2. $< Concern for e(3loee* = E(3loee E (3loee *ati*faction an2 5ell%bein' i* a22re**e2 in t,e Netflix (i**ion *tate(ent. T,e value Netflix 3lace* on it* e(3loee* i* ackno5le2'e2. Milestones

 Netflix i* a 3ublicall tra2e2 vi2eo rental an2 *trea(in' *ervice ba*e2 in California/ California/ Unite2 &tate*. Ori'inall co(3etin' 5it, vi2eo rental bu*ine**e* *uc, a* t,e no5%2efunct Blockbu*ter Vi2eo Vi2eo c,ain/ Netflix 3ioneere2 rentin' 8V8* b b  (ail/ an2 5it, 3roliferation of t,e Internet  be'an *trea(in' vi2eo online in 0$$. Netflix i* no5 a 'iant in it* fiel2/ creatin' ori'inal *erie* *erie* an2 fil(* an2 *trea(in' vi2eo to *ub*criber* 5orl25i2e. Au'u*t 0$$# = Netflix/ Inc. i* incor3orate2.

AN EVALUATION OF NETFLIX INC.

@

-# = Netflix be'in* *trea(in' content over t,e Internet. Au'u*t -0 = Netflix ne'otiate* a 0B 0 B 5it, E3ix ?a 3re(iu( televi*ion 3rovi2er