Netflix Case Studies / MBA Capstone

Introduction and Background

For the first time in our MBA history we are given a case with so much similarity with my current office business and my plans, so personally I am beautifully attached with the Netflix and even though the name is familiar for me as I learn about Netflix as the media before while I worked at my office and I hope I will write all about my learning’s as it includes the on demand internet streaming media things.

Netflix for today is the gives people entertainment through the use of online media and the main thing is they are the mediator for giving the clients what actually they wants. Unlike any other product related companies they give what customers actually wants for example if I want to watch movie of Katti Batti then I just need to subscribe for the movies and pay my minimal charges were sitting at home they will post or mail my cod’s to my home and I could enjoy my weekends with my beloved ones watching it. So, basically concept is not unique, it was well practiced by other people before too, it’s just about how innovative you will be as for the Netflix they found the gap between what is and what ought to be. to again explain this I would like to give a short example suppose I where go to the cod store and purchase one cd of movie for a limited time and return back and if I forgot to return I am charged with some amount there as late fees, as soon as Netflix found this gap they came up with the solution they mail me my cd no matter how many times I watch that movie and no matter how I took it, its unlimited and its with very minimal cost which let me be comfortable with what I am doing.

Introduction as a Netflix

I again explained as this is the on demand(customer wants are highly perceived) media which is available for every viewers in many countries including Australia, NZ, south America, Denmark, Australia and many more, the rates are flat and the DVD’s are mailed to them through mailing service. If we go through the history of the company it has not been more than 17 years in that short period of time it is their right time and the right entry of strategy they have made themselves so strong at the market that no websites related with movie and content writing are spared, they always have been a inspiration to the young entrepreneurs like us.

The question is how it operates so it’s the subscription basis they offer collection of movies with the title of DVD and if we want that DVD we could mail them and get that on time. They really got 42.3 million and more subscribers only in united states while 26 billion worldwide that is really huge for the company which just got in the market it has not been even 20 years since they got here already they have been global which is totally dramatic. So, at the internet business while you got views you get money so subscriptions are the customers and the revenue is out of our imagination they got revenue of 5.50 billion dollars in 2015, handsome amount for the company. They have subscriptions for more than 40 countries and the expansion of their business is their main strategy for now and they are growing bigger and bigger the main theme is as internet and Google is reaching everywhere with being global business they are also growing wider and bigger.

Currently at Netflix with the CEO named Reed  Hastings with the revenue of US $ 5.50 billion with the employees of 2189(full time) and with the operation to more than  40 countries they are operating successfully exploiting the opportunities and getting the wealth and prosperity.

Netflix as breaking glass of the traditional approach of dealing with the DVD the reed has shown a vision of how come they can transform their ideas to reality. They have undergone through major strategy options first for the local and secondly to go global there are many strategies as the business student I see Netflix has used for them to survive and gain prosperity and growth. They have combined inventory of large database that has led viewership to all the categories and at the global level so, they are the largest rental retail film firm, the response at the preliminary stage was slow where the slightly and steadily three were able to capture the heart of the people and could catch the wants so ultimately they are one a hybrid store for the online block buster movies aggressive pricing and video on demands are the things the case tells us about

              I would like to go to the case questions directly as they are too many while answering them I will try to reload all the subjects if not will e added to my concluding paragraph,

Miles and Snow Strategy that Netflix should use on their business are:

As the miles and snow topology

Prospector ·         Innovative and growth ·         Search for the blue ocean ·         New market ·         New developments ·         Risk taking environment	Defender ·         Stays at current market ·         Stable growths ·         Exploit the opportunities ·         Serves current customers
Analyzer ·         sustain at current markets ·         moderate expansion ·         serve current customers ·         customers satisfaction is the priority ·         emphasis on innovation	Reactor ·         No strategy ·         Reaction is made to the changing environment ·         Changes with the need of market ·         Red ocean strategy ·         Drifts on change

So as per the question demands in my view at their first of the business operations Netflix were at the prospector they searched for the blue ocean where opportunities were high and even they were innovative being prospector they:

·         Create change in the digital and movies industry by introducing online streaming and rental through easy subscriptions.

·         Netflix created change through the steady market development and legal procedures of online DVD’s

·         Horizontal systems and decentralization of power.

So at the middle they were defender as they were defending competitions and defending the market with their customers and the customer’s satisfaction

Capabilities

Core competency

Resources

Success factors of Netflix

                                                                                                                        

                                                                                                                 

So, the success factors for the Netflix with detailed analysis competencies are further explained

Competencies:

·         Analyze past innovation strategy and coming up with new and unique strategy for present market

·         Making up with the on demand streaming with the online marketing

Core competencies:

·         Unlimited quantity of videos with unlimited which in itself is a distinctive features to provide to its customers.

·         They are innovator of online streaming so they are known s first mover.

Capabilities:

·         Management proficiency

·         Teams of good people and expertise

·         Management of the product

·         Strategic alliance with the many good companies like Apple, Toshiba, DVD manufacturer

Resources:

·         Technology

·         Human resources

·         Research and development

·         New product

So these were the competencies with the capabilities and core competencies of Netflix which has given success to the company, so how it has contributed to the success is further discussed in other points:

·         Resources have open up the ways to expand their business and to take the bigger share of the market and they have gone global up to 40 countries.

·         Home entertainment, online video streaming and online catalog are some factors for success.

·         They have been delivering the DVD by any media to their customers; they are successful on doing that.

·         Cinematic algorithm is another one for the success that keeps track and take the feedback from customers about the movies and the title.

Netflix functional concerns

There are three functional concerns of Netflix

Product

       I.            Marketing, communications designs and delivery:

·         Marketing communication is made through informal communication and process it is made and run while recruitment and networks.

·         Mass marketing concept

·         Mobile advertisements

·         Schemes for the consumers and free trial

·         detainment of loyal customers through any idea and concepts

·         They use any Pr like TV, Billboards and mostly internet for the promotion activities of Netflix.

    II.            Target customers

·         Traditional DVD customers

·         Online streaming customers

·         Prospect customers

Netflix productions and operations

Production

They need to make their focus on the competitive market and production of quality services. This is only possible when there are good Human resources for the job so for the implications of new ideas and to innovate ideas there need to be effective human resources. Team and employee of the Netflix are the strength for the Netflix the goal of the company and the goal of the employee are so compactable that the result is shown in the production and the target customers are often achieved.

Operations

Research and development in any organization , so the Netflix is continuously improving them with the research and development they are up to date with the quality services to its customers through the management and factors and even the distribution channels of TV and movies.

Netflix competitive advantage and the value chain relative

Primary activities:

Inbound logistics:

 Use of Standard physical distribution method

Outbound logistics:

Partnership and strategic alliance with the company’s like Apple, Toshiba which has added them competitive advantage of Netflix.

Operations:

Providing services like unlimited video streaming and quality services to its customers through the good management approach.

Sales marketing:

Good marketing on sales has added competitive advantage to the Netflix as the customers recognize the brand and they are compel to use the services and the trust is developed within the customers.

Service:

The services of Netflix itself is an competitive advantage as they were the first mover for the online DVD rental and they have long gone to 40 countries which led them be global and added one competitive advantage to them.

Support activities:

Firm Infrastructure:

Fast place innovation on working environment is their competitive advantage regarding value chain.

Human Resources:

Brainstorming from the employees has generated new ideas and innovative approaches to deal with the customers. Objectives and goals are clearly defined.

Technology Development:

Online streaming of movies, Content directly to computers and strategic alliance with MAC has added competitive advantage.

Procurement:

Access to more than one million database of movies and online streaming to not only movies but also to the dramas.

Some of the services line online streaming , unlimited videos watch, online DVD rental to any corner of the U.S. easy policy of the returns and the convenience to the customers has led Netflix to add one more competitive advantage.

Conclusion

As we know every case gives us a certain learning experience there are always some do’s and don’ts related with the case and the history of them, from this case of Netflix I came to learn about the strategies they have used to survive, prospect, to defend their competitors and the strategies to deliver the service to their customers. They have been able to gain competitive advantage through various aspects and process of value chain, primary activities and support activities.

As they have been able to codify their resources, competencies and capabilities in the field of innovation, for the innovation they have been using latest technology and always keen to adopt with the new challenges and environment.

Coping with the challenges and hurdles Netflix has always stands and handled their problems with the learning experience and the preparation was made even stronger with the new strategic plan which led them excel the environment. Future plans and vision for the long run business is also the Netflix another part, they are always good at doing things perfectly and uniquely. So apart from this I recommend them to give priorities to their current resources, core competencies and the capabilities for tee growth and innovation of the business.

Bibliography

Agrawal, G. R. (2010). Strategic Management. Kathmandu: M.K. publishers.

Pearce II, J. &. (2011). Strategic Management:Formulation, Implementation, and control. New york:McGraw Hill: MC Graw Hill.