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Netflix

Netflix. MBAA 609 R. Nakatsu. Netflix vs. Blockbuster. What does a typical Netflix customer value? How does this differ from a typical Blockbuster customer who goes to a physical storefront to rent videos?. Discovery-Driven, Emergent Strategies Over Time.

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Netflix

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  1. Netflix MBAA 609 R. Nakatsu

  2. Netflix vs. Blockbuster • What does a typical Netflix customer value? • How does this differ from a typical Blockbuster customer who goes to a physical storefront to rent videos?

  3. Discovery-Driven, Emergent Strategies Over Time Identify discoveries that Netflix encountered and discuss how they led to changes in Netflix’s strategies. • What was the initial business model what discovery led Netflix to abandon it? • What other discoveries led Netflix to change?

  4. Achieving Operational Excellence What did Netflix do to achieve operational excellence in the following areas? • Inventory management • Logistics/shipping • Customer service operations How does Netflix use IT to support these operational areas?

  5. Frameworks to Analyze Netflix • Porter’s Five Forces Model • Four strategies for countering the competitive forces • Sustaining vs. Disruptive Innovation

  6. The Competitive Landscape Today • Is VOD a sustaining or disruptive technology • What competitive threats does Netflix face? What should Netflix do to respond to the competitive challenges? • What is Netflix doing today to stay competitive?

  7. Main Takeaways • Understand the differences in the business models of Netflix and Blockbuster. • Recognize that the formulation of strategy is an evolving, and sometimes discovery-driven process. • Understand how Netflix uses IT to achieve operational excellence. • Identify the actions that Netflix can take to respond to the competitive challenges that it faces. • Practice using the frameworks discussed in class (e.g., Five Forces Model, Sustaining vs. Disruptive Innovation) to analyze the Netflix Case.

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