Stragegic Plan
A Strategic Plan
And
It’s Impact on the Rise and Downfall Of
Netflix, Inc.
[pic]
MBA 517 Fall 2012
(Strategic Planning and Policy Analysis)
14th Dec, 2012
TABLE OF CONTENTS
• Executive Summary
• Strategic Vision
• Business Objectives
• Environmental Analysis
• Industry & Competitive Analysis
• SWOT Analysis
• Business Strategy
• Implementation Plan
• Monitoring Adjustment- A Dynamic Process
Executive Summary
Netflix, Inc., the world’s largest and leading online DVD rental company; was founded by Reed Hastings and Marc Randolph in the year 1999 and operated from Los Gatos, California. In the very initial days Netflix started its business through online DVD rental using web media which is called as www.netflix.com through internet.
The business was operated by delivering DVDs through postal mail and then charged the customers and this was called as Pay per DVD rental services. Gradually with this the company revenues increased and in a span of two years Netflix gone for an expansion and the Pay per DVD revenue model was replaced with a “fixed monthly fee system”, the monthly fee was about $ 15.95 per month. This was a major breakthrough for Netflix which has allowed all its customers wherein they can rent up to 4 DVDs per month without any due dates or late fees. After initializing the fixed monthly fee system, later in the year 2000, Netflix has launched one more strategy which was like customers can have up to four DVDs with in their possession one time for a fee of $19.95 per month.
Netflix 's decided to split the business into two separate companies, one for the streaming and one for the "legacy" DVD business which is called as Qwikster. And then Netflix started charging the subscribers two separate bills every month which made Netflix to face the unexpected downfall.
Netflix’s website for the subscribers
And
It’s Impact on the Rise and Downfall Of
Netflix, Inc.
[pic]
MBA 517 Fall 2012
(Strategic Planning and Policy Analysis)
14th Dec, 2012
TABLE OF CONTENTS
• Executive Summary
• Strategic Vision
• Business Objectives
• Environmental Analysis
• Industry & Competitive Analysis
• SWOT Analysis
• Business Strategy
• Implementation Plan
• Monitoring Adjustment- A Dynamic Process
Executive Summary
Netflix, Inc., the world’s largest and leading online DVD rental company; was founded by Reed Hastings and Marc Randolph in the year 1999 and operated from Los Gatos, California. In the very initial days Netflix started its business through online DVD rental using web media which is called as www.netflix.com through internet.
The business was operated by delivering DVDs through postal mail and then charged the customers and this was called as Pay per DVD rental services. Gradually with this the company revenues increased and in a span of two years Netflix gone for an expansion and the Pay per DVD revenue model was replaced with a “fixed monthly fee system”, the monthly fee was about $ 15.95 per month. This was a major breakthrough for Netflix which has allowed all its customers wherein they can rent up to 4 DVDs per month without any due dates or late fees. After initializing the fixed monthly fee system, later in the year 2000, Netflix has launched one more strategy which was like customers can have up to four DVDs with in their possession one time for a fee of $19.95 per month.
Netflix 's decided to split the business into two separate companies, one for the streaming and one for the "legacy" DVD business which is called as Qwikster. And then Netflix started charging the subscribers two separate bills every month which made Netflix to face the unexpected downfall.
Netflix’s website for the subscribers
References: Websites: • Netflix, Inc. www.netflix.com • http://ir.netflix.com/downloads • http://en.wikipedia.org/wiki/Netflix • http://www.bizjournals.com/sanjose/news/2011/09/19/complete-text-of-netflix-ceos-apology.html?page=all • www.google.com • http://www.cbsnews.com/8301-505124_162-43452943/turns-out-netflix-blew-the-qwikster-name-pick----out-of-fear/ • www.yahoo.com Thompson, A. A., Peteraf, M. A., Gamble, J. E. & Strickland III, A. J. Crafting and Executing Strategy: Concepts and Readings (18th ed.). New York: McGraw-Hill/Irwin.