Strategic Position Statement

Netflix is first provider of delivered DVDs by mail that became common way and convenience for customer. Netflix offers DVDs to customers with quick delivery, which is mostly within one day (Willy Shih, Stephen Kaufman & David Spinola, 2007). In addition, customers utilize good recommendation system provided by Netflix (Scoot Merrill, 2009). Besides, customers are able to be given good customer service support (Katie Hafner, 2009).

Netflix was the first company to create an online DVD movie rental service. The service has created a new ‘movie’ market niche which has secured them a competitive ‘first-mover’ advantage in this new ‘high-tech’ venture. The popularity of the service has sparked the interest of market competitor Blockbuster who may become a growing threat to Netflix should they enter the online movie rental market (Perreault, 2004).

1. Netflix’s original marketing strategy offered several flat-rate monthly subscription options; in which, members could stream movies and shows via the Internet or have disks sent to their homes in a pre-paid and pre-addressed envelope. Free from the despair of due dates and late fees, members could keep, up to, eight movies at a time. Upon the return of a disk, Netflix would automatically mail out the next movie from the customer’s video queue. Members were able to change and update their queues as frequently as they liked. The sheer innovation of Netflix’s strategy encouraged several competitors to enter the market to compete directly,

Netflix became the biggest competitor to Blockbuster, even though Blockbuster didn’t seem to notice. Netflix created a video rental mail-order service through their website. This was a monthly subscription service that allowed customers to receive a movie in the mail, watch it at their leisure, and return it when they were finished; all with no late fees. When the movie was received back to the Netflix warehouse, a new movie was sent from the customer’s favorites list. The customer only had to go as far as the mailbox to receive and return a movie.

First formed in 1991, Netflix has become today’s predominant video rental service. They offer a hybrid service allowing DVD delivery by mail as well as streaming movies and TV shows via their company website or access on 200 other devices. Their unique business process has netted them over 16 million subscribers and revenue around $500 million annually. The reason for their growing success can be attributed to a good business model and just as important, properly implemented systems. An extremely efficient supply chain management system (SCM) and customer relationship management system (CRM) have helped Netflix become the world’s largest video subscription service.

Netflix gains thousands of subscribers every year, compared to where it was a few years ago, many theaters believe that movies available to stream at home is a big threat. Home media has changed drastically over the decades, there are no more video rental shops, thanks to how much technology and the Internet have improved over the past few years. Throughout most of our lives, we have accepted the fact that whenever a movie comes out, the only way to watch it is through theater first. With the innovation of Netflix, we are able to experience entertainment in a different way.

One of the distinguishing factors between Netflix Inc. and other video rental companies is their decision to bypass the traditional “brick and mortar” retail route and delivering their product from the warehouse directly to the customer. Netflix learned that they could cut cost by utilizing the internet for

In formulating a process for undertaking a strategic plan for, say the veterinary services organization mentioned in my course paper and presentation, a first step would be formulating at least a mission statement for the organization. Since the veterinary clinic in question had not formalized a mission statement its mission was perhaps nebulous or up for debate. Berman suggests that the original mission statement might be revisited during the design phase (please see the following below), however, if none is in place prior to the start of strategic planning then perhaps an attempt to develop one at the start of the strategic planning process is advisable, even if it were to be revisited and modified during the process. As the Chinese proverb states, “如果你不知道你要去哪裡，任何道路會帶你去那裡。”* The mission statement allows the organization to develop specific goals and programs and serve a purpose in the strategic planning process.

Netflix is an American cooperation that provides on-demand Internet streaming media. It was founded by Reed Hastings in 1997 in Los Gatos, California. In 1999 the company adopted a subscription-based business model, which allows customers to pay for a particular category of memberships to determine how many DVD’s could be rented at one time. So DVD’s were mailed to customers and then once they finish viewing the DVD customers can mail it back to Netflix. In 2007, Netflix started offering an online streaming service to their customer. The objective of this service was to reduce cost by encouraging the subscribers to switch to the online streaming, which would decrease the expenses associated with the shipments of mailed DVDs. In 2010,

NetFlix.com, the world’s largest online DVD rental company, was founded by Reed Hastings and Marc Randolph in 1997, and is headquartered in Los Gatos, California. The company started its online DVD rental business by launching Netflix.com, offering pay-perDVD rental services by delivering DVDs via mail. As the company prospered during late 1999, NetFlix replaced its pay-per-DVD revenue model with a fixed monthly fee system that allowed customers to rent up to 4 DVDs per month with no due dates or late fees. In February 2000, it launched a new plan, where, with a monthly fee of

What is Netflix’s strategy in the on-line movie rental market? What are Netflix’s sources of competitive advantage? Identify the competences key to the success of Netflix’s strategy and explain why. Netflix was a late entrant to the movie rental market and it was a first mover in the on – line movie rental market. Netflix’s strategy in the movie rental market is differentiation from traditional movie rental stores. Instead of attracting customers to a retail location, Netflix offered home delivery of DVDs through the mail. Why only DVDs? In 1998, most available movies were in VHS cassette format but Netflix concentrated on using only DVDs because its

Although much of Netflix’s success was a result of the aforementioned strategies, without IT or information technology it could not have competed with other rental businesses like Blockbuster. Its initial use to provide customers with a convenient and personalized means of renting movies largely led to its accomplishments as a business. Their use of a search engine makes finding movies much easier than going to a Blockbuster and having to go through hundreds of titles before finding the right one, especially if it’s an older movie. Its use of user feedback for movie recommendations, enables the company to promote and rent out older titles that otherwise would have just been collecting dust. This recommendation service also encourages repeat customers since it offers other movies that he or she will be very likely to want to watch. Another contribution of the Netflix’s movie recommendation service to the profitability of the company is its ability to be used by anyone, which attracts many potential customers. Other, competing, movie rental businesses that lack Netflix’s IT

PACOM’s first priority to influence this evolving security environment must be to ensure that the theater strategy supports the broader national strategy and policy objectives. The 2015 National Security Strategy presents PACOM with the following guidance: 1) Welcome the rise of a stable, peaceful, and prosperous China; 2) Seek to develop a constructive relationship that delivers benefits for our two peoples while promoting security and prosperity; 3) Seek cooperation on shared regional and global challenges; 4) Manage competition from a position of strength while insisting China upholds international rules and norms on issues ranging from maritime security to trade and human rights; 5) Closely monitor China’s military modernization and

Netflix started as an online based movie rental service in 1999 when it was created by founder Reed Hastings, the current CEO of the company. Hastings’ goal for the company was to be “the world’s best Internet movie service provider and to deliver a growing subscriber base and earnings per share every year” (Thompson, C-92). The company has been able to become a leader in the movie rental and streaming industry for several reasons. Netflix was an early entrant to the industry and has been able to build an extensive subscriber base due to aggressive promoting and advertising of the brand, exclusive contracts with movie suppliers, and their superior

Expro is an oil and gas company operating in the downstream sector providing services to Oil and Gas operators like Tullow, Shell, ENI etc. John Trewhella, Jim Ross and Humphrey Green formed Exploration and Production Services (North Sea) Ltd in Great Yarmouth in 1973, with the far-reaching vision of competing on a global basis with the major international service companies.