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Date Submitted: 04/16/2012 08:46 PM
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...