Netflix Case Analysis
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EMS Consulting
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Strategic Plan
Three-Year Plan: Staying Competitive in a Dynamic Market
Emilee Anderson, Morgan Hall, Vincent Nelson
GBA 490 – 003
Dr. Ron Dulek
February 28, 2013
Table of Contents
Executive Summary ……………………………………………………………………………. 3
Issues and Recommendations …………………………………………………………………. 3
Industry Overview ……………………………………………………………………………... 5
Company Overview ……………………………………………………………………………. 6
Exhibit 1 – Five Forces Model of Competition ……………………………………………….. 8
Exhibit 2 – Driving Forces …………………………………………………………………… 10
Exhibit 3 – Key Success Factors ……………………………………………………………... 11
Exhibit 4 – Financial Data ……………………………………………………………………. 12
Exhibit 5 – SWOT Analysis ………………………………………………………………….. 14
Sources ………………………………………………………………………………………… 15
Executive Summary This report analyzes the strategic and financial performance of Netflix in the movie and video stores industry. Through an examination of the video retailing industry’s five forces model, driving forces, key success factors, financial statements, and SWOT analysis, we have been able to clearly articulate Netflix’s position in the competitive market and develop recommendations for the foreseeable future. The movie and video industry is competitive and currently going through a time a change. The process of going to a brick and mortar movie rental store is outdated and the future is in Internet streaming. Netflix has been at the forefront of this industry for years and has caused many companies economic struggles; however, Netflix must not expect to maintain this position without increasing efforts. To gain advantages against their competitors, Netflix must expand their customer base internationally, develop a customer loyalty program, and adapt a strategy to obtain and offer new release in a timely manner. The ultimate goal of this report is to find key
EMS Consulting
-------------------------------------------------
Strategic Plan
Three-Year Plan: Staying Competitive in a Dynamic Market
Emilee Anderson, Morgan Hall, Vincent Nelson
GBA 490 – 003
Dr. Ron Dulek
February 28, 2013
Table of Contents
Executive Summary ……………………………………………………………………………. 3
Issues and Recommendations …………………………………………………………………. 3
Industry Overview ……………………………………………………………………………... 5
Company Overview ……………………………………………………………………………. 6
Exhibit 1 – Five Forces Model of Competition ……………………………………………….. 8
Exhibit 2 – Driving Forces …………………………………………………………………… 10
Exhibit 3 – Key Success Factors ……………………………………………………………... 11
Exhibit 4 – Financial Data ……………………………………………………………………. 12
Exhibit 5 – SWOT Analysis ………………………………………………………………….. 14
Sources ………………………………………………………………………………………… 15
Executive Summary This report analyzes the strategic and financial performance of Netflix in the movie and video stores industry. Through an examination of the video retailing industry’s five forces model, driving forces, key success factors, financial statements, and SWOT analysis, we have been able to clearly articulate Netflix’s position in the competitive market and develop recommendations for the foreseeable future. The movie and video industry is competitive and currently going through a time a change. The process of going to a brick and mortar movie rental store is outdated and the future is in Internet streaming. Netflix has been at the forefront of this industry for years and has caused many companies economic struggles; however, Netflix must not expect to maintain this position without increasing efforts. To gain advantages against their competitors, Netflix must expand their customer base internationally, develop a customer loyalty program, and adapt a strategy to obtain and offer new release in a timely manner. The ultimate goal of this report is to find key