Premium Essay

The Netflix Rollercoaster

In:

Submitted By silasglines
Words 453
Pages 2
Silas Glines #76
Professor Bosket
BA303
6 September 2014
Case Study: The Netflix RollerCoaster

1. Netflix’s marketing strategy was a fantastic idea. Customers got an alternative to classic movie rentals where they don’t have to pay any late fees, and they don’t have to drive to a movie store. Customers could set up queue’s and order as many DVD’s as they want, and as fast as they can watch them and ship them back, they get another one in the mail. Customers don’t have to even pay for postage as Netflix gave them a prepaid envelope for each DVD. Because of Netflix’s existing customer base, switching to online streaming was very easy, and it would be safe to say that Netflix has a type of monopoly in the online streaming market, sharing the majority of their profits with only Hulu. Since Netflix was the first among many other companies to attempt this strategy, they have the competitive advantage, and will probably maintain that for years to come. 2. Netflix’s rapid reversal and business strategy change was clearly a good idea for the company; however, some permanent damage was done. Some customers still feel as if the CEO and Shareholders are greedy, and once a customer base has established that opinion, it is hard to convince them otherwise. I think this was a short-term PR Nightmare, but it will have some residual effects in the long-term, but hopefully those effects will slowly fade and impact the company minimally. 3. SWOT
Strengths:
* Popular brand name * Wide DVD Selection * Good website, east to use, fast, reliable * Cheap pricing * A CEO thinking about the future of the company and not just the present * First business to utilize this concept
Weaknesses:
* Bad PR accumulated from paste decisions * DVD Subscription rate decreasing
Opportunities:
* As their website has no advertising on it, Netflix could

Similar Documents

Premium Essay

Case Study - Netflix Rollercoaster

...Megan Welshymer BA 370 9/29/15 Extra Credit # 1 Case Study: The Netflix Rollercoaster 1. Netflix’s original marketing strategy offered several flat-rate monthly subscription options; in which, members could stream movies and shows via the Internet or have disks sent to their homes in a pre-paid and pre-addressed envelope. Free from the despair of due dates and late fees, members could keep, up to, eight movies at a time. Upon the return of a disk, Netflix would automatically mail out the next movie from the customer’s video queue. Members were able to change and update their queues as frequently as they liked. The sheer innovation of Netflix’s strategy encouraged several competitors to enter the market to compete directly, forced existing competitors, such as Blockbuster, to extend their services to include mail delivery, and inspired the very creation of Redbox. Regardless of all the competition, if Netflix can remain on the cutting edge of their craft, by continuously offering the latest releases and the most far-fetched options; they should be able to maintain their competitive advantage, because they offer a valuable, reliable service at a consistent price. 2. Reed Hastings’ strategic change and rapid reversal affected Netflix’s fourteen million customers in several ways. First, the company launched a streaming-only plan for $7.99 per month in November 2010, and increased the cost of each DVD plan by $1. Customers interested in both services, were...

Words: 809 - Pages: 4

Premium Essay

Case Study Solution

...Case Study 14: The Netflix Rollercoaster Group Members: De’La Mayers, Michawl Rivers, Karin Skelton, Shan-Shan Yu 1. Explain Netflix’s marketing strategy. Can it sustain its competitive advantage? Why or why not? 2. How has their strategic change and rapid reversal affected their customers? Do you believe this situation is short-term public relations nightmares or a long-term reversal of fortune? Strategic change affected their customers deeply because they thought the business plan to change things would benefit them greatly (over confident) but in reality it didn't. Once they realized they messed up they tried to quickly fit the solution with some of the old ways but again it failed. I personally believe it it a short term public relations nightmare, mainly because I have a Netflix account and besides some of the movies and shows I like to watch aren't on there I am super happy with there services. Anyone that has been a customer recently or for a long term I'm sure would agree they are satisfied. 3. Perform a SWOT analysis for Netflix. What are its biggest threats and which opportunities should it pursue? POSITIVE | NEGATIVE | |   | STRENGTHS: | WEAKNESSES: |   | Innovative - quick service | Two separate entities (Qwikster & Netflix) | INTERNAL | No late fees, keep as long as you like | Same monthly fee for Disc & Streaming Service |   | Automatically mail next video in queue upon return video or videos | Charging...

Words: 364 - Pages: 2

Premium Essay

Gilmore Girls: A Year In The Life

...Gilmore Girls revival premieres on Netflix; Cast talks about getting back into their characters A beloved comedy-drama television series of its times, the Netflix revival of ‘Gilmore Girls’ would premiere on Nov 25 under the title ‘Gilmore Girls: A Year in the Life.’ Eight years is a long time for a show to return but the cast is excited and it has been a rollercoaster ride for them as they are reinhabiting the characters they left years ago. For every actor who is returning to ‘Gilmore Girls,’ it is a special experience, nonetheless, different from individual perspective, reports Entertainment Weekly. The lead stars Lauren Graham and Kelly Bishop, who play Lorelai and Emily respectively, had it easy. The former says that it was easy in most...

Words: 386 - Pages: 2

Premium Essay

Faith In Come Sunday Film

...Faith, by definition is complete trust in something. But what happens when you decide that what you believe in is completely wrong? Directed by Joshua Marston, the netflix original, Come Sunday explores the boundaries between personal and communal beliefs. The film is one of the few that dares to explore the controversy within a religion widely followed to this day. Come sunday is set in Tulsa, 1998, amidst a town of pentecostal believers. Based on a true story, this touching tale features a world-renowned pastor, Carlton Pearson, who gets accused of heresy after he stops believing in hell. The movie expands his lifestyle after he puts himself, his family and his church at risk. To Carlton, church comes even before family, and his life is shattered...

Words: 348 - Pages: 2

Premium Essay

Pseudo Art Research Paper

...It arouses the same emotion to an entire group of people. Horror films are examples of amusement are that are used as a device to arouse and discharge certain emotions in a way that does not interfere with practical life (78). For example, many horror films are meant to put the entire audience through the same rollercoaster of emotions throughout the movie. Specifically, the audience is familiar with how generic horror movie plots go and although they may be scared during the movie they know what emotions to expect to feel and when to feel them. Collingwood thinks that the effects of pseudo-art is very similar to how a drug...

Words: 1663 - Pages: 7

Free Essay

Rhetorical Strategies: How They Enhance the Essay

...Rhetorical Strategies: How They Enhance the Essay Today, rhetorical strategies are ubiquitous. They can be discovered in the latest top box office cinematic movie, the beloved binge-watched television show on Netflix, the aggravating commercials we are forced to sit through, the latest best-selling book, etc. Applying rhetorical strategies helps the writer communicate with ease and fluidity. Rhetoric additionally helps the reader or viewer gain interest while making it pleasurable. All in all, rhetorical strategies are simply ways of effectively and adequately presenting material. In the essays of discussion the effectiveness of how imagery, emotional appeal and tone build the writers credibility and enhance the essay will be discovered. For example, Virginia Woolf uses rhetorical strategies in “The Death of The Moth”. Woolf begins by using imagery effectively throughout her essay by strategically incorporating descriptive details. Woolf encountered this moth in the day time, so she begins her essay by stating, “moths that fly by day are not properly to be called moths . . .” (para. 1). This statement spikes wonder; what does that mean? She explains that moths in the day “ . . . do not excite that pleasant sense of dark autumn nights and ivy-blossom which the commonest yellow-underwing asleep in the shadow of the curtain never fails to rouse in us” (Woolf para. 1). Her sense of imagery is full of color and expression which helps her credibility in her writing. It truly makes...

Words: 2336 - Pages: 10

Premium Essay

Miss

...CASE SYNOPSIS Business 478 Prepared by: Aswin Kumar Candice Woods Giorgio Budolig Lucas Segars Qasim Nathoo Prepared for: Jerry Sheppard March 20, 2013 Blackberry, Then And Now Research In Motion (RIM) entered the mobile communications industry in 1984. The Waterloo, Ontario, company founded by Mike Laziridis, penetrated the market with two-way paging technology; developed as a substitute product for Motorola’s SkyTel. Following a series of financing in 1998, and a Co-CEO partnership with Jim Balsillie, the firm launched its first signature Blackberry device in 1999. The year following, RIM released its first smart-phone, the Blackberry Bold. This release marked the beginning of RIM’s journey, through the tumultuous and extremely volatile high technology industry. Initially, the firm’s iconic Blackberry device was riding the crest of the telecom wave. Its proprietary and unparalleled encryption technology made their device the globally preferred Smartphone amongst corporate clients and government agencies. The brand dominance soon permeated the individual consumer market. However, the company’s fortunes took a turn for the worst, as intense rivalry and innovative technology emerged. Competitors, such as Apple and Samsung entered the market in 2007, and soon became cultural phenomena. As their market share severely eroded, so did RIM’s share price. RIM’s shareholders lost almost 80% of their wealth in 2011 (Levy, 2011). Adding salt to the wounds, ...

Words: 3231 - Pages: 13

Free Essay

8899

...Mara Barron Introduction            The first time I watched HBO’s Game of Thrones I was enthralled, but scared. My parents were wholly unaware of me because I would sit halfway down the stairwell to look at my grandmother’s faded painting. The painting was so lightly colored, that I could watch the TV through its reflection. So, I would sit there and watched as dead zombie-like bodies tried to rip the living to shreds, a platinum-blonde-haired woman burn her enemies alive, and seemingly everyone else get butchered. I loved watching Game of Thrones even though I found its violence, nudity, and coarse language terrifying. I kept watching the show until I was caught watching the episode, “The Red Wedding.” That night, my mother was going to my room to tuck me in for the night, but instead found me clutching the stairwell railing. I was immersed in the violence massacre scene when I felt her presences and quickly fled the scene. She came into my room and told me sternly, “that show is too “adult” for you,” and kissed me good night. But as I lay there, I couldn’t help but want to know more. Now, I am an adult and I want to revisit the episode.     Game of Thrones came out in 2011, has five seasons, been nominated for multiple Emmy awards and won, and its sixth season will be released sometime in 2016 due the massive amount of fan requests. Its franchise is so large, that a quick google search or search on the AU databases reveals that millions of people are offering their scholarly...

Words: 3333 - Pages: 14

Free Essay

Miss

...WWW.IBISWORLD.COM Internet Publishing and Broadcasting in the US August 2014 1 High-speed growth: The internet’s advertising expenditures will increase, spurring growth IBISWorld Industry Report 51913b Internet Publishing and Broadcasting in the US August 2014 Stephen Hoopes 2 2 2 2 3 About this Industry Industry Definition Main Activities Similar Industries Additional Resources 17 International Trade 18 Business Locations 34 Regulation & Policy 34 Industry Assistance 20 Competitive Landscape 20 Market Share Concentration 20 Key Success Factors 21 Cost Structure Benchmarks 23 Basis of Competition 24 Barriers to Entry 24 Industry Globalization 35 Key Statistics 35 Industry Data 35 Annual Change 35 Key Ratios 4 5 5 5 7 9 Industry at a Glance Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook 36 Jargon & Glossary 26 Major Companies 26 Google Inc. 27 Facebook 28 Apple Computer, Inc. 11 Industry Life Cycle 13 Products & Markets 13 Supply Chain 13 Products & Services 15 Demand Determinants 16 Major Markets 31 Operating Conditions 31 Capital Intensity 32 Technology & Systems 33 Revenue Volatility www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com WWW.IBISWORLD.COM Internet Publishing and Broadcasting in the US August 2014 2 About this Industry Industry Definition This industry includes organizations and individuals that offer nonphysical products such as...

Words: 16009 - Pages: 65

Free Essay

Teach You Stuff

...Additional Praise for Ramit Sethi and I Will Teach You to Be Rich “Ramit Sethi is a rising star in the world of personal finance writing. . . one singularly attuned to the sensibilities of his generation. . . . His style is part frat boy and part Silicon Valley geek, with a little bit of San Francisco hipster thrown in.” —SAN FRANCISCO CHRONICLE “The easiest way to get rich is to inherit. This is the second best way—knowledge and some discipline. If you’re bold enough to do the right thing, Ramit will show you how. Highly recommended.” —SETH GODIN, AUTHOR OF TRIBES “You’ve probably never bought a book on personal finance, but this one could be the best $13.95 you ever spent. It’ll pay for itself by the end of Chapter 1 (check out the box on page 24 to see what I mean).” —PENELOPE TRUNK, AUTHOR OF BRAZEN CAREERIST: THE NEW RULES FOR SUCCESS “Most students never learn the basics of money management and get caught up in the white noise and hype generated by the personal-finance media. Ramit’s like the guy you wish you knew in college who would sit down with you over a beer and fill you in on what you really need to know about money—no sales pitch, just good advice.” —CHRISTOPHER STEVENSON, CREDIT UNION EXECUTIVES SOCIETY “Smart, bold, and practical. I Will Teach You to Be Rich is packed with tips that...

Words: 92352 - Pages: 370