Analysis On Netflix Inc.

3736 Words15 Pages
Diagnosis paper on Netflix Submitted by Saiful Islam HRM-587 Managing Organizational Change Submitted to Professor Shashon Miles Date: 21st August 2014 Executive Summary Netflix Inc. is providing on demand internet streaming media. The company was found by Marc Randolph and Reed Hastings in 1997 at Scotts Valley, California. The concept of Netflix came through Reed Hastings while he got fined $40 outstanding balance after returning Apollo 13 which was passed the due date. Netflix started with 30 employees and availability of 925 streaming contents. Officially, Netflix never released documents regarding its visions for the future. However, at the Dublin Founders conference, Reed Hastings has mentioned his plans and goals for the…show more content…
Diagnosis Since Netflix was an online movie Rental Company, it introduced its subscription services to customers in 1999 which allowed access to unlimited DVD rentals with low payments. The subscription package consisted of the mailing cost of the DVD, which would be streaming on any device that was compatible with Netflix software. In the beginning, all cost was provided by Netflix. But by the time the postage cost got higher, it heavily affected Netflix revenue. Later on, the CEO of Netflix Reed Hastings implemented a new business strategy with a new website. The customers needed to pay differently for streaming, rentals or together. DVD rental would be followed by “Quikster” and was offered by new website. These changes affected the customers adversely. Therefore millions of customer canceled their subscription. Afterwards, CEO Reed Hastings canceled the new strategy and kept the same options as it was before but with higher price. After this, a lot more customers got back to Netflix and realized that the higher price is well-intentioned. At this point, the CEO Reed Hastings was unable to recognize the changes that made millions of customers cancel their subscription as well as depositors. Video on demand is going to be more of an issue because it allows the audience to see movie clip just per click. This is totally against the Netflix
Open Document