Netflix Strategic Thinking

Case study 2 - NETFLIX 16

NOVA SOUTHEASTERN UNIVERSITY H. WAYNE HUIZENGA SCHOOL OF BUSINESS & ENTREPRENEURSHIP

MGT-5090 ENTREPRENEURIAL AND STRATEGIC THINKING

ASSIGNMENT FOR: MGT-5090 Entrepreneurial and Strategic Thinking

SUBMITTED TO: Dr. Joel E. Rodgers

SUBMITTED BY: Frank Russell (Russ) Cook

DATE OF SUBMISSION: October 31, 2014

TITLE OF ASSIGNMENT: Case Study 2 - Netflix

CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
Another alternative may be to simply focus on its product offerings and increase subscribers through exclusive partnerships and pay the premium price required to acquire more and more content through expensive licensing agreements.

Phase out the DVD via mail service, focus on Internet streaming of original content, and expand viewership and subscribers internationally.

RECOMMENDATION: Phase out the DVD via mail service to cut costs, focus on Internet streaming of original content in an effort to limit supplier control, and help to increase domestic subscribership, and expand viewership and subscribers internationally to increase subscribership.

IMPLEMENTATION: Phase out the DVD via mail service to save on costs, focus on Internet streaming of original content to satisfy domestic subscribership and expand internationally, and limit supplier control as much as possible via original content.

CASE STUDY 2 -
and 14 million international online subscribers. In addition, Netflix will spend $600 million (US) on marketing and $400 million (US) on technology upgrades. (Netflix ups ante, 2014). Moreover, Netflix possesses brand recognition and the word Netflix even becoming a verb among Internet users. Furthermore, the Netflix App has created greater accessibility and enabled subscribers to stream media on nearly all Internet enabled devices. Perhaps most important of all is Netflix 's original content of award winning programs such as House of Cards, Orange is the New Black, and Hemlock Grove enhancing international growth. In addition, Netflix has signed a number of interconnection agreements with Internet Service Provider (ISPs) to ensure faster Internet speeds for subscribers (Sikka, 2014). More importantly, Netflix has positive financial ratios although profit margins remain low internationally, and continues to demonstrate outstanding stock market