Introduction.
Reed Hastings (co-founded) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. As Netflix went public in 2002, shortly a year later their subscription reached the one million mark (Netflix Management, 2011). Recently, Netflix is recognized as one of the 50 most innovative companies, ranking number eight for “streaming itself into a $9 billion powerhouse (and crushing Blockbuster)” with 20 million subscribers (fastcompany.com, 2011). This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity. A will describes and evaluate Netflix’s innovation strategy, the specific products offered to their members, and the benefits that the company brings to its customers and employees. To begin, innovation goes beyond an invention. It captures the opportunity for change, growth, and market leadership that allows leaps within the industry in multiple ways.
Netflix’s Innovative Overview
The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups. The success of Netflix was simply listening to consumer’s feedback regarding the services and products in the DVDs rental industry. As a result, Netflix absorbed the lucrative cost in unattractive late fees. Instead, Netflix offers no late fees, no membership required, the ability to cancel services anytime, 24-hour online and telephone support, substantial movie reviews from customer (peer), and unlimited streaming and DVD rental services. Most important, Netflix major attraction was quality service without the long lines like most brick and motors. Instead, DVD rentals arrive directly to your front door.This