The Netflix Team 's Strategy Essay

Stage one of the Argyle is when the idea is thought of by the communicator, and include them to adapt their words and expressions to match the audience the conversation is for; e.g. the elderly; we may have to talk louder as some elderly people (Or some young people/adults with hearing problems.)cannot hear the same as when they were younger, children; may need more expressions and fewer words, the body language used should be calm and inviting and voices should be calm and gentle rather than tense, or even a work colleague; will need to have clear communication together in order to be able to do your job effectively and to complete your daily duties within the job. . The sending of the message is known as ‘encoding’, at this stage the communicator is planning what needs to be said, this stage is very effective as it can help conversations to be delivered in an effective way, for example; if a doctor needs to tell his patient that they have cancer, he should plan his words or expressions very carefully so not to hurt the patient or make them feel worse than they are.

The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes.

Netflix was founded in 1997 with the intent to revolutionize the way in which consumers watch movies and television shows. Their accomplishments both in innovation and in customer base for their service indicate that the firm has been, and continues to be, successful in doing so. Currently, the

Netflix, an internet television network that is revolutionizing the way we watch TV series and movies without having to leave the comfort of our couch has over 50 million subscribers in more than 40 countries.

6-1. Why is it important to spend extra time reviewing and polishing the beginning and end of a message? 1

Q 1. Some of Netflix’s capabilities and core competencies are mentioned in the case. Go

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.

There are several different actions the firm could take to improve its strategies. One strategy Netflix could implement is gradually

cheaper and more convenient alternatives such as cable/ satellite providers offering recordings via DVR, cell phones, tablets and other electronic devices

Netflix’s core competencies are excellent customer service, keeping up with the times of technology, providing one month free access to new customers, and creating Netflix original series that can only be accessed if you have a monthly subscription. VRIN stands for valuable, rare, inimitable, and non-substitutable. Netflix is very competitively valuable today by being the number one way to stream series and movies very conveniently. Netflix isn’t necessarily rare anymore since you can access series and movies on Hulu but Netflix is better because you are not interrupted by commercials. Competitors actually come out with movies and series faster than Netflix but what sets them apart and is the quality of the content. Netflix is partially substitutable

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.

Entering and transforming the video rental industry was a large undertaking for the start-up company. The first marketing objective the company undertook was the process of building a brand. Netflix’s identity was crucial to future growth and success. Without a strong brand, competitors with deep pockets could have easily duplicated the company’s business model. Secondly, leveraging technology was critical to establishing the business and infrastructure growth. The consumer base was the final objective Netflix sought to achieve. Retaining and growing subscribers were fundamental to revenue and marketing goals.

A strategy is a plan that is targeted over the long run. Business level strategies refers to strategic alternatives that an organization chooses from as it conducts business in a particular industry or market (Griffin,2002). A corporate level strategy means that a company manages its operations simultaneously across many industries and markets. Netflix operates across both a business and corporate level strategy. The main areas across which Netflix operate on in their corporate level are business portfolio and partnerships.

The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in

One the one hand, the fertility of the industry opened the doors to corporations that sighted substantial growth potential. New entrants with big pockets such as Walmart could pose a certain threat to Netflix, by exploiting a playing card based on cost reduction. On the other hand, barriers to entry became relatively significant as established video rental retailers such as Netflix have the experience and the knowhow to market movies to people. In this industry, firms that do not have a technological advantage can’t compete. The best example is Netflix’s CineMatch program that offered personalized film recommendations based on customer’s rental patterns. This way, Netflix was able to better serve its subscribers. From a cost perspective, the movie rental industry requires high capital expenditures, and the major expenses are highly related to acquisitions of DVD library and investments in technology (exhibit 2 continued). Thus, we may say that entry is difficult in this industry as the competing firms have reputation, experience and recognizable brand names.