Netflix

Netflix – 2011

Forest David

A. Case Abstract

Netflix is a comprehensive strategic management case that includes the company’s year-end 2010 financial statements, organizational chart, competitor information and more. The case time setting is the year 2011. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Los Gatos, California, Netflix’s common stock is publicly traded under the ticker symbol NFLX.

Netflix founded in 1997, Netflix provides DVDs and Blu-ray discs to Internet based subscribers in the United States, Canada, Mexico and Latin America and DVDs and Blu-ray discs delivered to the homes of customers in the United States. Customers, who receive DVDs by mail, keep the media for as long as they wish with no late fees and return the DVD in a prepaid shipping envelope and then are eligible to select their next DVD. Subscription plans start as low as $7.99 per month. The company had 25 million subscribers as of Summer 2011.

B. Vision Statement (proposed)

To become the number one mail order and live streaming movie company in the world.

C. Mission Statement (proposed)

At Netflix we seek to be the highest quality subscription business that offers Internet streaming and DVD by mail content (2). We believe in offering the best customer service possible by teaching our employees to be honest, respectful and ethical (6) while also valuing every customer’s individual needs. Our employees (9) are provided with the latest technologies, excellent benefits, and the safest working conditions in the industry. We provide outstanding customer service and in return, our customers (1) in our North American and Mexican markets (3) recommend their friends to Netflix (5). Our vast library of DVD’s and streaming service (4) provides a competitive advantage (7) as compared to offering only streaming. At Netflix, we strive to be a good...