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Netflix Case Study

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  • November 2012
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I.Viewpoint: CEO

We used the CEO Reed Hasting view point, because he is the current CEO and primarily responsible for the main ideas for this company.

II.Problem Statement:

How should Netflix enter the online video market? Any decision made on this issue would impact not just the Netflix existing business model but its ability to sustain its position as a giant in the media industry.

III.Key Objectives

Make Netflix more engage in technology generation now a day. To increase revenue incomes for the company and at the same time make the company brand more globally to all.

IV.Areas of Consideration

SWOT

Strength:

the first company that venture into the online DVDs rental retailing Netflix offers prepaid subscription service whereby customers only need to sign up and pay a fixed subscription fee a month for unlimited rentals. Customers will now have no more worry of returning their movies late, as Netflix has cancelled the late-fee system. Netflix made the unsubscription process relatively easy

dopting the strategy of reclaiming churned customers rather than forcing dissatisfied customers to stay. Offers a web portal with powerful features such as a proprietary recommendation system that was very accurate in recommendations Customers are recommended to movies based on their preferences as well as the availability of the movies. Gained a good reputation as well as a large base of customers over the years. Growing library of more than 5,000 choices that can be watched instantly on their PCs. Over 6.7 million subscribers.

They have over 55 million discs and ship 1.6 million a day, on average.

Weakness:
Prepaid subscription service model do not work with low volume customers. High replacement inventory cost will occur since DVDs might get lost or damage during the mail transit. Delivery time is still a weakness for Netflix in comparison to brick-and-mortar store...