Chapter 16 Discussion

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Chapter 16 Discussion Subscription-based delivery companies, such as Blue Apron and Birch Box, are growing rapidly. However, competition in the area has grown tremendously as well! Select one specific subscription- based delivery company (either one of the two named or another). Based on the ideas from this chapter, how should they respond to these competitive threats? Are they currently responding in ways that match the chapter's content? Explain. What could they do differently to better align with the chapter's content? Again, please choose a company that you have not yet written about in previous cases or discussions. When considering subscription-based services, Netflix is the first company that comes to mind. To assist Netflix in responding to competitive threats, the primary focus for the company should be its customer base and being customer-centric. To ensure the customer is a top priority, Netflix has a list of values that they prioritize. These include judgment selflessness, courage, communication, inclusion, integrity, passion, innovation, and curiosity. Their webpage also details the Netflix culture which includes 1. Encourage decision-making by employees, 2. Share information openly, broadly, and deliberately, 3. Communicate candidly and directly, 4. Keep only our highly effective people, and 5. Avoid rules (Netflix Jobs, n.d.). Based on the values and culture, the company has created a very open and diverse organization but also encourages its employees to be open with their ideas and not create silos across the organization. Netflix has been able to sustain a competitive advantage by not being afraid change to change its product/service. The company was originally founded in 1997 as a mail subscription service to order videos (Netflix, n.d.). The company has kept the customer top of mind by giving them the same service without needing them to leave their home. Netflix now offers a monthly service where customers pay for unlimited movies and tv shows. The inventory available is constantly changing which keeps the company relevant. Netflix has also entered the market of creating its material such as Netflix original movies and series. This has created superior value for the company and allowed company to move ahead of its competitors early on. The company’s main focus should be the customer, but to have top-tier customer service, the company will need happy employees. For the company to continue creating value and separation from its peers, it should consider focusing on its employees by offering an education reimbursement or online degree programs as an incentive. This is a huge benefit for employees and could bridge the gap for those employees that are looking to advance at the company but did not have the opportunity to attend college. Netflix has taken product steps to expand its company and meet the needs of its customer base. However, in recent news, the company will begin to limit the number of users on one subscription. I
believe this will cause customers to reconsider their subscriptions. I believe the company should have taken a better approach and potentially increased the price based on the number of users. If they have the data implying customers are sharing subscriptions, then they have the data to determine how many users and if it would be beneficial to expand the existing services to account for sharing. As soon as this change is implemented, I believe this will impact customer satisfaction scores and metrics. The company will need to ensure they have a plan for the backlash it will receive. This would be a perfect opportunity for the company to crowdsource ideas from their employees and empower employees to provide a solution. References Netflix. (n.d.). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Netflix Netflix Jobs. (n.d.). Retrieved from Netflix: https://jobs.netflix.com/culture
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