Netflix Case Analysis Essay

3260 WordsApr 14, 201314 Pages
------------------------------------------------- EMS Consulting ------------------------------------------------- Strategic Plan Three-Year Plan: Staying Competitive in a Dynamic Market Emilee Anderson, Morgan Hall, Vincent Nelson GBA 490 – 003 Dr. Ron Dulek February 28, 2013 Table of Contents Executive Summary ……………………………………………………………………………. 3 Issues and Recommendations …………………………………………………………………. 3 Industry Overview ……………………………………………………………………………... 5 Company Overview ……………………………………………………………………………. 6 Exhibit 1 – Five Forces Model of Competition ……………………………………………….. 8 Exhibit 2 – Driving Forces …………………………………………………………………… 10 Exhibit 3 – Key Success Factors ……………………………………………………………... 11 Exhibit 4 –…show more content…
The downturn of the economy has taken away many peoples disposable income and Netflix’s limited online library may have caused customers to question if it was worth it or not. To combat the issue of cancellations we recommend that Netflix implement some form of a loyalty program and/or a referral program. If Netflix were to begin to offer deals such as a free month after a customer has subscribed for a year or rebates for customers who use their Netflix account frequently, they would be able to improve brand loyalty and increase the average time of a subscription. Our second recommendation is to implement a referral program. For example, if a subscriber refers three people in a months’ time to Netflix, and those three people begin a subscription, that customer would receive a free month. These programs or another form of them would increase customer loyalty and have a positive effect on the amount of cancellations. The third issue affecting Netflix is the age of movies that they offer to their customers. Netflix cannot deliver the newest movie titles online because they are not offered through VOD for at least a month after they come out on DVD. This is a huge disadvantage to their customers that exclusively use Netflix’s online service. This is the only advantage that Blockbuster still has over Netflix, because if someone wants to see a movie the day that it comes out on video then

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