Executive Summary: Netflix
NetFlix Case
By: Stivi Zengo
Ref: 212339537
Prof: V, Aleem
Section: V
Executive Summary
The case mentions how Block Buster came to be and what factors lead it to fail compared to Neflix. Some of those factors were the awful late fees and the slow technical side not moving to streaming as fast as its competitors. The case primarily discusses the decision that the CEO of Netflix, Reed Hasting decided to make and how that decision played out. His decision was simple to split Netflix into two different operations. Netfilx would deal with the streaming part of the company and Qwikster would deal with the DVD rentals. The price of the products would be spilt 7.99 each or 15.98 together. This was a drastic increase from the original 10 dollars that would entail both the DVD rentals and the streaming. This lead to a huge consumer drop which then alerted the CEO and he returned to make a formal apology to his consumers saying that he did not mean to make it difficult to rent DVD 's and why the name of the new website was Qwikster. The solution or recommendation that I would give the CEO is to change the price back to 10 dollars keep the separate websites, make the price of DVD rental 2 dollars and streaming 8 dollars.
Statement of Problem
What seems to be the major concern or problem regarding the case is what should the CEO of Netflix, Reed Hasting do since he made the decision in 2011 at the headquarters in Los Gatos California of separating the functions of Netflix. The reason people were not happy about Netflix cutting its DVD rental service is because now they have to go to a different website (Qwikster) in order to look for the movies they desired. Also with the separation of Netflix there has been an overall price increase, if one desires to have both Netflix streaming and Qwikster DVD rental. Reed Hasting has caused the company 's share prices to fall thus costing the company money.
Analysis
By: Stivi Zengo
Ref: 212339537
Prof: V, Aleem
Section: V
Executive Summary
The case mentions how Block Buster came to be and what factors lead it to fail compared to Neflix. Some of those factors were the awful late fees and the slow technical side not moving to streaming as fast as its competitors. The case primarily discusses the decision that the CEO of Netflix, Reed Hasting decided to make and how that decision played out. His decision was simple to split Netflix into two different operations. Netfilx would deal with the streaming part of the company and Qwikster would deal with the DVD rentals. The price of the products would be spilt 7.99 each or 15.98 together. This was a drastic increase from the original 10 dollars that would entail both the DVD rentals and the streaming. This lead to a huge consumer drop which then alerted the CEO and he returned to make a formal apology to his consumers saying that he did not mean to make it difficult to rent DVD 's and why the name of the new website was Qwikster. The solution or recommendation that I would give the CEO is to change the price back to 10 dollars keep the separate websites, make the price of DVD rental 2 dollars and streaming 8 dollars.
Statement of Problem
What seems to be the major concern or problem regarding the case is what should the CEO of Netflix, Reed Hasting do since he made the decision in 2011 at the headquarters in Los Gatos California of separating the functions of Netflix. The reason people were not happy about Netflix cutting its DVD rental service is because now they have to go to a different website (Qwikster) in order to look for the movies they desired. Also with the separation of Netflix there has been an overall price increase, if one desires to have both Netflix streaming and Qwikster DVD rental. Reed Hasting has caused the company 's share prices to fall thus costing the company money.
Analysis
References: Netflix inc. Streaming away from DVD 's (The Case) ----------------------- [1] page 5 line 24-26 [2] Page 2 line 24-25 Case [3] Page 5 line 20-21 Case [4] Page 2 line 3-4, 8-9 Case [5] Page 6 line 13-15 Case [6] Page 1 line 8-10 Case [7] Page 4 line 20- 22 Case [8] Page 3 line 19-20 Case