Rafaela Soto 11/07/2016

ENT-101 Section D

BSAM OUTLINE: Netflix Case Analysis

When and where are we in Time? (Firm location, and during what time frame does the case take place?
 2015-2016
 California, United States

Who are the Stakeholders? (Group them into categories and put them on the same line by category):
 Owner (Reed Hastings), Founders (Reed Hastings, Marc Randolph)
 Customers
 Employees
 Shareholders, suppliers, distributors.

Industry Firm Competes In & Customer Target Market:

 International streaming subscribers
 People who have access to internet
 men and women aging 18-34 years old 

Who is the Competition? (Group them into categories and put them on the same line by category):
 Hulu, vudu
 Amazon prime instant video, HBO, CBS, youtube

Assessment (Key Symptoms and Issues/Problems):

 Increased costs
 Competition
 International expansion
 Content (dvd and streaming)
 pricing pressure

Analysis (The ONE Primary Problem):

 mismanagement of profit

Explain Best Alternatives and How They Will Help “Solve” the Singular Primary Problem Above:
Alternative #1: cancel the market of DVDs
Alternative #2:increased prices
Alternative #3 (BEST/FINAL): licensing and contracts with new partnerships.

Implementation of Final Recommendation (Action Plan: Describe ways to put it in motion; its cost, timeline,
specific details about the plan – Think through EVERYTHING):
 invest and investigate contracts and partnerships around the world. Now that neflix is available in 190
countries, is presenting issues with local cultures. They need partnerships in those countries, so the
content will be better and will gain more subscribers.
 Focus more on Hollywood movies, instead of original content. A lot of time, people look up for a movie
and is not on netflix (popular movies). People is paying for this service and now they have less content
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 than before because they are focusing more on original content. People like to watch actors on the
screen and Netflix is wasting too much money trying to make original content and at the same time is a
lot of money when the company tries to hire these famous people.
 Content should be the same. Some people pay for the DVDs and others for the online streaming. The
content should be equal; sometimes there is a movie in the DVDs market but is not in the streaming
market which causes loss of customers because the online streaming market is more expensive so it
should have the same content.
 Partnership with apple.
 offer free month to returning customers
 don’t accelerate. Netflix is a company that is growing very fast and that can cause an overexpansion and
then loss a lot of customers (viewers) and money.

Timeline:
 first 6 months: investigate competition and new partnerships.
 next 6 months: start having more content according the partnerships.
 2nd year: apple contract
 3rd year: continue releasing original content, but not more than 30%
 from the 2nd year to later on, be aware of new technologies.

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Rafaela Soto
ENT – 101-D
NETFLIX SWOT Analysis

Strengths
1. first mover advantage
2. strong brand recognition
3. ease of use
4. popular movies and tv shows
5. easy accessibility through many different platforms
6. original tv series and movies

Weaknesses
1. Declining DVD membership
2. Streaming library
3. International licensing
4. Local culture (difficulty to understand it)
5. Dependence on relationship with distributors and availability on internet
connection

Opportunities
1. Original content
2. expansion
3. partnerships (example: apple tv)
4. technology
5.

Threats
1. Streaming
2. Content
3. fraud
4. competition (Amazon Instant Video and HBO GO have a more relevant selection)
5. government regulations