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4. Yes, the Company's Strategy Had Evolved from Their Vision Statement. Any Company Should Have a Goal, Only Then It Could Move Towards Their Aim Point, Which Is Nothing but Their Strategy.

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Assignment Questions

Netflix

1. What are the dominant economic characteristics of the online movie rental business?
2. What is Netflix’s vision?
3. What is Netflix’s strategy? What type of competitive advantage is it trying to achieve?
4. How do Netflix’s business model and strategy compare to those being employed by key rivals, particularly Blockbuster?
5. How is the online movie rental business changing? What are the underlying forces of change and how are they impacting the industry?
6. What key factors determine success in the online movie rental industry? How important is technology to Netflix’s success?
7. What does an analysis of Netflix’s performance, both financial and strategic metrics, reveal?
What is the story of the numbers in case Exhibits 3, 4, 5, and 6? How does its performance compare with that of key rivals—as shown in case Exhibits 7 and 8?
8. What do you see as Netflix’s competitive strengths and weaknesses? Is there a good market opportunity here for Netflix? What external threats does the company need to be concerned about? 9. Do you believe that Netflix has built a sustainable competitive advantage in the online movie rental business? Why or why not?
10. What does Netflix need to do to strengthen its competitive position and business prospects, given the competitive actions of Wal-Mart and Blockbuster? What specific actions should founder and CEO Reed Hastings take?
11. How are Blockbuster and Wal-Mart likely to react to the strategic moves that you have recommended that Netflix make?
12. Would you buy stock in Netflix at this time? Why or why not?

Starbucks

1. What are the key elements of Starbucks’ strategy as of 2004?
2. What grade would you give Howard Schultz for the job he has done as CEO of Starbucks? Be prepared to support your answer based on how well (or not so well) he has performed the five tasks

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