Human Resource Management and Netflix Main Strength
Question 1
Netflix make decision effectively within the internal organization and create value to its consumer, it is essential for Netflix to understand the competitive advantages and strategic competencies of its organization with the help from Netflix resources, capabilities, core competencies and value chain analysis.
Tangible Resources Case Fact Strength Weakness
Financial Resources Revenue grew by 25 percent to $4883.7 million and net income by 44 percent to $32.3 million
(Ireland,et, al.2013 P298) Ability to generate funds with the increment in revenue ability to control their overhead expenses Increase of almost 300 percent in the value of share to an all-time high of $119.50 (Ireland,et, al.2013 P298) Ability to generate funds via issue of shares Long-term debt financing as it issue a $200 million aggregate principal amount of senior notes(Ireland,et, al.2013 P306) With the long term debt, Netflix might have problem to finance their long term debt in the near future which thus might drag down their profitability
Organizational Resources Functional structure with specialized functions (Ireland,et, al.2013 P312)
Employees can feedback to its individual management easily. Various department can also support the Netflix firm strategy
Physical Resources 10 regional distribution centers (Ireland,et, al.2013 P300) Wide coverage to reach consumer easily and allows efficiency in delivery 58 warehouse
Innovation logistic system(Ireland,et, al.2013 P305) It allows Netflix to have prompt delivery to all their customer
Technological Resource 10000 orders processed each day by its own proprietary software system (Ireland,et, al.2013 P300) It helps to speed up the delivery process and provide consumer with prompt delivery View instantly allowing subscriber to stream data system (Ireland,et, al.2013 P305) Improve the accessibility for consumer by having an alternative ways of viewing videos
Netflix main strength will be its
Netflix make decision effectively within the internal organization and create value to its consumer, it is essential for Netflix to understand the competitive advantages and strategic competencies of its organization with the help from Netflix resources, capabilities, core competencies and value chain analysis.
Tangible Resources Case Fact Strength Weakness
Financial Resources Revenue grew by 25 percent to $4883.7 million and net income by 44 percent to $32.3 million
(Ireland,et, al.2013 P298) Ability to generate funds with the increment in revenue ability to control their overhead expenses Increase of almost 300 percent in the value of share to an all-time high of $119.50 (Ireland,et, al.2013 P298) Ability to generate funds via issue of shares Long-term debt financing as it issue a $200 million aggregate principal amount of senior notes(Ireland,et, al.2013 P306) With the long term debt, Netflix might have problem to finance their long term debt in the near future which thus might drag down their profitability
Organizational Resources Functional structure with specialized functions (Ireland,et, al.2013 P312)
Employees can feedback to its individual management easily. Various department can also support the Netflix firm strategy
Physical Resources 10 regional distribution centers (Ireland,et, al.2013 P300) Wide coverage to reach consumer easily and allows efficiency in delivery 58 warehouse
Innovation logistic system(Ireland,et, al.2013 P305) It allows Netflix to have prompt delivery to all their customer
Technological Resource 10000 orders processed each day by its own proprietary software system (Ireland,et, al.2013 P300) It helps to speed up the delivery process and provide consumer with prompt delivery View instantly allowing subscriber to stream data system (Ireland,et, al.2013 P305) Improve the accessibility for consumer by having an alternative ways of viewing videos
Netflix main strength will be its