Netflix Undergoing a Strategy Shift

Topics: Strategic management, Change, Renting Pages: 3 (931 words) Published: March 11, 2013
Assignment One: Strategy Changes
Within the past year, Netflix has undergone many strategy changes. One of the most recent familiar changes was when they split their business into a visual and virtual model. Many consumers protested and had mixed feelings regarding this strategy change. However, they did not get it all wrong. In fact, the company has regained stability and continually looked for more innovative routes to take their business. The most current strategy alteration that is creating a media buzz-binge is Netflix’s new strategy. The original Netflix business foundation was based around the idea of being a leader in mailing DVDs. In 1999, to compete with the video rental market, especially Blockbuster, they launched a subscription service which allowed their subscribers to rent an unlimited number of DVDs at one low monthly price. However, as consumers taste changed so did Netflix’s business model. To incorporate those changes Netflix started to include streaming from personal computers. Within the past year, Netflix completely changed their model by splitting into two businesses. In recent years, DVD rentals are continually starting to reach maturity and the steaming market has continued to take off. This time period has allowed Netflix to capitalize on an opportunity to execute a new strategy, enter as a new market player, all while maintaining profitability. The strategy in which Netflix is now pursuing entails that of binge viewing. On February 1st, Netflix launched a complete season, all 13 episodes, of ‘Houses of Cards. Ultimately, is Netflix trying to revolutionize the way we watch TV? Some of the most recent changes in television include a shift from primetime television, to DVD rentals, to the most recent streaming. Due to the continued change in television, Netflix has found a need to serve each unique segment. This in turn has increased the continued success rate of the company because they have not become complacent with...
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