Case Study

History of the company

• It was founded in 1997, in California by Reed Hasting as well as Marc Randolph.

• In 1999, online subscriptions allowed customers to sign up and request the needed DVDs
which would me mailed by snail-mail.
• In 2007, shows and movies could be streamed online keeping the option of DVD rental as
well. The company also partnered with video game consoles’ companies to allow its
content to be streamed online to those devices.
• In 2010, the company split the subscriptions by offering an online only streaming plans.
• By 2012, memberships reached 25 million members. By 2021, this became 200 million.
• By 2016, Netflix subscription service was available over 190 countries with 21 languages
globally.
• Netflix started having series and movies produced exclusive for it’s streaming calling them
“Netflix Originals”
 • According to Google finance, Netflix’s
worth is now at 116.06 Billion USD

• Fun fact: when Netflix made its IPOs back

in 2002 it was selling at $1.0 now as of Nov
4th,2022 it closed at $260.8
Current
situation • Netflix is now available on any type of
screen, with an option to download
whatever show/movie and not just online
streaming.
Companies mission

“At Netflix, we want to entertain the world. Whatever your taste, and no matter where
you live, we give you access to best-in-class TV series, documentaries, feature films
and mobile games. Our members control what they want to watch, when they want it,
with no ads, in one simple subscription.” you live, we give you access to best-in-class
TV series, documentaries, feature films and mobile games. Our members control what
they want to watch, when they want it, with no ads, in one simple subscription. 
How did this company become a leader?

Netflix simply knew how to create a competitive advantage!

By following 7 simple strategies:
1. Creating a disruption through technology: streaming best quality shows and movies as well as
creating a unique content.
2. Flexibility: convenience of watching at anytime on any screen.
3. Variety of options: countless number of shows and movies available to cater all consumer’s tastes.
4. Having a unique edge of ‘Netflix Original’: available only on Netflix.
5. No ads what-so-ever!: Enjoy undisrupted watching.
6. Better and enhanced user experience: you can download and watch on the go without internet.
7. Netflix recommendation: creating a more personal experience by catering to each subscriber’s
preference based on his/her watch history. t they want to watch, when they want it, with no ads,
in one simple subscription. 
What about the management structure?

• Netflix is currently operating as a flat structured organization. This

helps in empowering employees to make decisions, share information
openly as well as acting as owners.
• The official company’s website has a very interesting quote reflecting
their work culture.
“ if you want to build a ship don’t drum up the people to gather wood,
divide the work and give orders. Instead, teach them to yearn for the
vast endless sea”- Antoine de Saint Exupery.
What about the management structure?

• Netflix is currently operating as a flat structured organization. This helps in

empowering employees to make decisions, share information openly as well as
acting as owners. As a matter of fact, as it was reported on an article on Insider
business that the CEO Reed Hastings doesn’t really have an office in the HQ.
• The official company’s website has a very interesting quote reflecting their work
culture.
“ if you want to build a ship don’t drum up the people to gather wood, divide the
work and give orders. Instead, teach them to yearn for the vast endless sea”-
Antoine de Saint Exupery.
How did the company adapt to the pandemic?

• During the pandemic, Netflix has turned out to be one of the major sources of
recreation for the homebound people
• Netflix introduced the “watch party”, which allowed multiple users to watch the
same screen adhering to the lockdown measures.
• Netflix used social media specifically Instagram marketing, through posting a
weekly live series where popular casts from shows would educate people about
the pandemic by raising awareness.
• The company invested more into improving their networks, systems and storages
and overall needed technology to keep up with the change in business model.
Results

• According to an article published on Yahoo finance, Netflix made it to the top 15

global companies performing during covid. Gaining a market cap of $97.5 billion
between December 2019 to December 2020. An increase of 68% vs that of the
prior year.
References

• https://www.britannica.com/topic/Netflix-Inc
• https://www.google.com/finance/quote/NFLX:NASDAQ
• https://about.netflix.com/en
• https://www.themedialab.me/7-key-factors-behind-success-story-netflix/
• https://www.businessinsider.com/netflix-office-tour-2013-10
• https://www.researchgate.net/publication/350041166_An_Analysis_of_Netflix's_Business_S
trategy_and_How_the_Company_is_Coping_with_the_Challenges_Posed_by_the_Coronavir
us_Crisis
• https://procureconeu.wbresearch.com/blog/airbnb-alibaba-netflix-coronavirus-covid-19-pro
curement-supply-chain-strategy
• https://finance.yahoo.com/news/15-companies-benefited-most-pandemic-101257486.html?
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