Netflix Case

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Netflix Case

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Netflix was never an overnight success but its history has been an incredible series of events that occur all because of paying a $40 late fee. The company was started by Reed Hastings, who was already a successful entrepreneur who was sick and tired of Blockbuster’s customer service and the inconvenient service of U.S. Postal Service. Seeing as an opportunity to relieve the problems, he founded Netflix in 1997. Eventually, Netflix has become one of the most popular streaming websites in the United States.

The fact that Blockbuster has some terrible service is the reason why Netflix is rising. The matter is that people are tired of driving to a brick and mortar store. Even though the store maybe ten minutes away, customer service usually is lacing. In fact some stores may not have the type of movie an individual may want because of low demand or popularity. Blockbuster believes that renters are people who would watch a movie out of impulse rather than wanting to see a movie that a friend recommends or media sources. The selections maybe limited because of the lack of advice from the sales staff.

So Hasting decides to provide a better service by not completely mimicking Blockbusters. Understanding that brick and mortar stores will take time and will be expensive to build, Hastings chose a more economic and lucrative method. During the late nineties, Netflix uses the internet retailing because it was in the pioneer stage so the market is new and emerging. This means there will be an option to not have to drive to retail but rather order your movie at home. At the same time, DVDs are being sold at a rapid rate. The sudden boom in sales has created a cheaper form of shipping due to the compact and light weight of the package unlike the VHS which will have a chance of breaking due to weight and moving parts. Furthermore, Netflix’s website used a complex program in the search engine that will allow easier selection by...