Accounting

Name: Maricela Cobos

Professor: Mauro

Date: 01-27-2012

Project 1

1. What is Netflix’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proportion? What evidence supports your conclusion?

Netflix’s strategy for success in the marketplace is that they have great plans of online services to their customers such as subscription plan with no due dates, late fees or shipping charges. It is a convenience Web site where subscribers choose any movie title and then it can be easily returned using Netflix’s prepares mailing. Netflix is the largest online movie rental service with more than 4,200,000 subscribers to get access to a library of more than 55,000 movies, television and other entertainment titles. Another strategy is by focusing in the improvement of websites such as social networking feature, called friends and called profiles. Since the technology is progressing Netflix has given the chance to their customers to download their movies.

The company relies primarily on operation excellence because it is focusing on the customers’ needs and the good relationship between their employees such as building mutually beneficial relationships with filmed entertainment providers. One way of looking forward to customers’ needs is by providing reliable network connections power where the company manages the web site 24 hour a day, seven days a week and they always are prepare to fix any failure right away. The use of ratings has helped the company to decide which movie titles customers like the most, having the goal to satisfy customer with the service they deserve. From my point of view Netflix is a great company that besides of making profit look always for what is the best to their subscribers.

2. What business risks does Netflix face that may threaten the company’s ability to satisfy stockholder expectations? Of the risks that you have identified,...