Netflix Internal Analysis
Netflix Vision & Mission
In Netflix’s own description of its vision for sustainable long-term future, the company describes a few critical elements necessary for growth [Netflix.com]. Its vision encompass the evolution of internet TV, replacement of “linear TV” by the internet TV, development of interactive applications, and enhancement of streaming capability to virtual limitless access capability. But perhaps, there’s a more hidden message in Netflix’s mission statement that offers a more in-depth company’s strategic vision. For instance, the notion of “simplicity” at the core of functionality offers a wider scope of vision. The idea is tenured in to Netflix’s conception in 1997 when it emerged as a broadband entertainment value’s company set out to simplify entertainment. The company follows a simple rational for a vision. Customers up until Netflix have obtained their entertainment through a variety of sources to include substantive web surfing and media interaction. Netflix reduced those resources in to a single package. Focusing primarily on Music, Films, Videos, and Sports, Netflix combined largest of entertainment databases driven by a single menu selection. It also outlines the notion of exclusivity in its vision. The company openly admits to understanding its limitations against competitors like Comcast, Skype, Amazon, Google, Apple, Microsoft and SONY. Those firms are too large and too multi-dimensional in resource capabilities and who also own considerable bandwidth. Netflix states that its mission is not to engage in exhaustive competition against those rivals, rather to rely on “focused passion brands”. Netflix mission statement implies “passion brands” as pioneering products and services that have led industries by customer driven selections. It considers companies like HBO, Starbucks and United Airlines to be that “passion brand”. Netflix envisions its video streaming technology as virtually a limitless array of selection
In Netflix’s own description of its vision for sustainable long-term future, the company describes a few critical elements necessary for growth [Netflix.com]. Its vision encompass the evolution of internet TV, replacement of “linear TV” by the internet TV, development of interactive applications, and enhancement of streaming capability to virtual limitless access capability. But perhaps, there’s a more hidden message in Netflix’s mission statement that offers a more in-depth company’s strategic vision. For instance, the notion of “simplicity” at the core of functionality offers a wider scope of vision. The idea is tenured in to Netflix’s conception in 1997 when it emerged as a broadband entertainment value’s company set out to simplify entertainment. The company follows a simple rational for a vision. Customers up until Netflix have obtained their entertainment through a variety of sources to include substantive web surfing and media interaction. Netflix reduced those resources in to a single package. Focusing primarily on Music, Films, Videos, and Sports, Netflix combined largest of entertainment databases driven by a single menu selection. It also outlines the notion of exclusivity in its vision. The company openly admits to understanding its limitations against competitors like Comcast, Skype, Amazon, Google, Apple, Microsoft and SONY. Those firms are too large and too multi-dimensional in resource capabilities and who also own considerable bandwidth. Netflix states that its mission is not to engage in exhaustive competition against those rivals, rather to rely on “focused passion brands”. Netflix mission statement implies “passion brands” as pioneering products and services that have led industries by customer driven selections. It considers companies like HBO, Starbucks and United Airlines to be that “passion brand”. Netflix envisions its video streaming technology as virtually a limitless array of selection
References: Brigham. (2013). Financial Management: Theory & Practice. (13th ed.). Thomson/SW. ISBN 9781111260736 Securities and Exchange Commission (March 2013). 10-K March 2013. Securities and Exchange Commission. Retrieved from www.sec.gov. Financial Intelligence Company. (2013). Retrieved July 16, 2013, from http://csimarket.com/stocks/singleProfitabilityRatios.php?code=NFLX&ebit Financial Intelligence Company. (2013). Retrieved July 16, 2013, from http://csimarket.com/stocks/singleManagementEffectivenessroa.php?code=NFLX Netflix Annual Repots & Proxies(2012). Retrieved July 16,2013, from http://ir.netflix.com/annuals.cfm Market Watch. (2013). Annual Financials. Retrieved on July 16, 2013, from http://www.marketwatch.com/investing/stock/nflx/financials