Netflix Case Report

CS4265: Netflix Case Report Done by: mindworx

Executive Summary Netflix is currently the largest online DVD rental company in the US. The company offers a prepaid plan for customers to rent DVDs online and have the DVDs mailed to them in envelopes. Since the inception of the company, Netflix has been constantly trying to improve itself on a few fronts of the business in order to better position the company to its partners and most importantly, its customers. Moreover, the company faces tough competition not only from traditional mom and pop video rental stores, but also other online video rental companies. On top of that, Netflix has a huge rivalry with Blockbuster, the largest video rental chain in the US. In recent times, Netflix has also been facing the threats of online video and Video-on-Demand (VOD), and are currently looking into the possibility of entering this space.

This report will first start by identifying some of the underlying problems and issues that Netflix faces. After which, the report would provide individual analysis for each of the issues and problems identified. The last part of this report will provide recommendations for Netflix on how they should deal with the issues identified, going forward.

Problem Statement This report will look into four various issues that identified from the case. Though the four issues have been separated for analysis purposes, it is important to note that they are indirectly linked to one another. The three issues are: I. II. Netflix’s Current Business Model Netflix’s competition with its rivals

III. Video on-Demand

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Analysis - Netflix’s Current Business Model Since the inception of Netflix, they have been constantly trying to fine-tune their business model to make it as profitable as possible for the company, suitable for current market situation and at the same time, create the most value for the stakeholders in Netflix’s business. Since Netflix started, they had already position themselves...