Netflix Case Essay Example
CASE ANALYSIS: NETFLIX
IDENTIFICATION
Overview
Netflix, Inc. is the world’s largest online subscription service for distributing the rental of movies and TV episodes by streaming the content through the Internet, and which customers also have the availability of receiving their rentals directly via mail. Subscribers given the option of eight different subscription plans, each pertaining unlimited streaming per month with a varying amount of titles allowed out at a time. Each subscriber has the ability to choose to stream the content over a high-speed internet connection, receive a physical disc copy of the rented content through postal delivery, or both. As of July 2010, Netflix had provided its services to approximately 15 million subscribers, operating effectively from their 50 regional distribution centers, alongside their additional 50 shipping points, evenly dispersed across the United States. With their numerous facilities located throughout the nation, Netflix succeeded in their pursuit of creating a convenient and responsive network that enables for 98 percent of their subscribers to receive one-business-day delivery.
Strategic Management Process
Netflix has based its operations and services upon the same unique business model it began with, since the start of the company in 1999. Created by founder and CEO, Reed Hastings, Netflix’s strategy has been driven by their aspirations in becoming the world’s best Internet movie service provider, by means of offering an array of different DVD titles in the quickest and easiest way. Netflix intends to become above all through continuously expanding their subscription base, producing an annual growth in earnings per share and, among all, increasing their probability of out-competing their rivals. Netflix has pursued their underlying strategic goals with the determination of improving the overall efficiency of the delivery/distribution process and by also striving to not only satisfy their current
IDENTIFICATION
Overview
Netflix, Inc. is the world’s largest online subscription service for distributing the rental of movies and TV episodes by streaming the content through the Internet, and which customers also have the availability of receiving their rentals directly via mail. Subscribers given the option of eight different subscription plans, each pertaining unlimited streaming per month with a varying amount of titles allowed out at a time. Each subscriber has the ability to choose to stream the content over a high-speed internet connection, receive a physical disc copy of the rented content through postal delivery, or both. As of July 2010, Netflix had provided its services to approximately 15 million subscribers, operating effectively from their 50 regional distribution centers, alongside their additional 50 shipping points, evenly dispersed across the United States. With their numerous facilities located throughout the nation, Netflix succeeded in their pursuit of creating a convenient and responsive network that enables for 98 percent of their subscribers to receive one-business-day delivery.
Strategic Management Process
Netflix has based its operations and services upon the same unique business model it began with, since the start of the company in 1999. Created by founder and CEO, Reed Hastings, Netflix’s strategy has been driven by their aspirations in becoming the world’s best Internet movie service provider, by means of offering an array of different DVD titles in the quickest and easiest way. Netflix intends to become above all through continuously expanding their subscription base, producing an annual growth in earnings per share and, among all, increasing their probability of out-competing their rivals. Netflix has pursued their underlying strategic goals with the determination of improving the overall efficiency of the delivery/distribution process and by also striving to not only satisfy their current