Netflix Case

Netflix Case

Jill A. Dilts

MGT 450: Strategic Planning for Organizations (BII1211B)

James Demeaux

April 15, 2012

Netflix Case

Founded in 1997, Reed Hastings observed and assessed that there was a growing

demand for motion picture rentals. Netflix began with an offer for their ever-growing customer

base in which competitors like Blockbuster and Hollywood Video had not brainstormed with

the idea that would allow customers to select and purchase movie rental right, from the privacy

of their own home. No need to wait in a line at a rental store anymore and you can pick a

secondary movie if the one you chose is out. Netflix posed its strategic move against all other

competitors and thus came into existence. In 2011 the conditions that all the home entertainment

companies must implement to meet and exceed current standards is now more than ever needed

with a rough economy of more than three years. At the same time as consumers are striving to

save money, time, and gas as all three of these conditions effect the movie rental industry. This

research paper will address a brief history of Netflix, the competitive industry in which they

compete, potential breakdowns, and finally an offer of speculation for how to address

future breakdowns in a way that they will turn into positive possibilities.

The vision of Netflix is simplistic: “Our vision is to change the way people access and view

the movies that they love” (Netflix.com, 2011). With more than 15 million current members,

Netflix is the world’s largest subscription service for the streaming of television and movie picks

and sending movies in the mail. New entrants are always a threat to existing companies like

Netflix in this industry. However, Netflix continues to innovate at a level which creates a new

standard of satisfaction that competitors and new entrants mimic in order to continue existence

with-in the market share. Netflix must continue in this posture...