I.

Statement of Objectives

We provided herewith our proposed two long-term objectives to be achieved with

their corresponding short-term objectives stated below them, to aid in the achievement of
the long-term objectives.

Long Term Objective #1 Long Term Objective #2

Short term Objectives Short term Objectives

● To adopt an aggressive growth ● To invest heavily in the production

strategy in the next three years, of in-house content and be able to
that is, to affix higher risks produce its first original film by
compared to other strategies to 2013.
receive possible higher returns.
V.
A. SWOT

STRENGTHS

● Netflix owned more than 100,000 titles of movies and TV shows on DVDs and Blu-rays.
- Netflix have accumulated big volumes of times of movies and TV shows on DVDs
and Blu-rays over the years since its operations first commenced.

● Netflix offers the convenience of renting the DVDs through the use of internet.
- Subscribers can easily select titles by building and customizing a personalized
queue of titles on our website. Netflix is able to create a unique experience for
subscribers because most pages on their Web site are tailored or custom-fit to
individual selection and ratings history.

● Strong brand name and company image

- Netflix created a unique strategy and was successful on its first years which made
it well-known/popular in the rental industry. Advertisement was not strongly
necessary because the popularity made Netflix a talk of the city, where they need
not to spend large cost to advertisements.

WEAKNESSES

● Netflix’s catalog of 20,000 streaming movies does not include many recent Hollywood hits
because Netflix has been unable to negotiate rights from all the studios. Netflix has about
five times as many titles in its DVD catalog.

● Dependence on Internet service providers

- There are existing Cable TV Companies which provides services to customers
without the requirement of internet connectivity. Moreover, the business depends
 on Internet service providers (ISPs) that determine customers’ connectivity speed,
which is a critical factor influencing customer satisfaction in Netflix’s service.

● Imitable business model

- Competitors can copy the same business model to create a platform for on-demand
online media streaming.

● Dependence on content producers

- This internal factor makes the company vulnerable to the effects of producers’
strategies.