Netflix Analysis : Netflix Inc.

3963 Words16 Pages
Alexis Allen David Olson Kelsie Peck Joseph Schildhauer
Netflix Inc.

Introduction:

History

Netflix was founded by technology enthusiasts and website developers Reed Hastings and Marc Rudolph back in 1997. Netflix originally started with a website to allow orders of DVD’s to be delivered to the home. The goal of the company was to provide a cheap and easy means of delivery of DVD’s to the consumer. As time moved on, Netflix went on to start streaming videos on their own platform and became an emerging power in the video streaming entertainment industry. According to Nasdaq’s website, Netflix became a publically traded company as “NFLX” on May 23rd, 2002. The IPO was worth $15.00 a share. (1) Now, Netflix (NFLX) according to
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“But with the number of options expanding quickly, Netflix will need a continuous stream of compelling, exclusive content in order to keep subscribers around.”(4) The video streaming industry is an industry that has appealed to many new entrants such as Time Warner’s HBO, that has a few popular shows that catch viewers attention. Other companies that have been attracted to this industry are Amazon, Sling TV, and CBS All Access. With these options opening up new ways of streaming, it causes Netflix to have to become extremely innovative and create different ways to stay on top in the industry.

Overall, Netflix has been extremely successful at being innovative towards the industry through creating their own stream of movies as well as adding movies to their platform. They have made smooth transitions from delivering DVD’s to having their own streaming platform. Though challenges are presented for the company, Netflix thus far has been able to maintain the frontrunner spot on the success curve for the video streaming industry.

Strategy Formulation:

Vision and Mission

Though Netflix does not have an official mission and vision statement, The CEO Reed Hastings came out and expressed both to its customers and investors. Netflix has a mission that influences every decision they make, which is “Our core strategy is to grow our streaming subscription business domestically and globally. We are continuously improving

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