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COMPANY ANALYSIS: NETFLIX By Table of Contents 1. Introduction: About the Company 3 1.1. Current Situation 3 1.2. Strategic Managers 4 2. Environmental Analysis 5 2.1…
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Download file to see previous pages Ethical Statements 7 3.2. Incident Reports 8 3.3. Analysis against Ethical Continuum 8 4. Structural Analysis 8 4.1. Family Tree – Structure Analysis 8 4.2. Stakeholder Analysis 9 4.3. Others 9 5. Recommendations and Suggested Improvements 10 6. Summary and Conclusion 11 1. Introduction: About the Company Netflix is a famous and established name in the industry of home video entertainment. In the year 1997, Netflix initiated its operations in the particular industry (Netflix). From the very start company has been reporting exceptional growth and development in the United States market. Along with this Netflix has also expanded its business to Canada, and is looking forward to expand it further in different international markets. Apart from this the financial situation of the company is also been improving along with the overall growth and expansion of the organization. Revenues of the company increased by around 29.5% in the year 2010, as Netflix reported $ 1670.3 million revenues in the year 2009 and $ 2162.6 million in 2010. At the same time the company reported a growth of around 38.8% in the net income, as the net income in the year 2009 was $ 115.86 million and it increased to $ 160.85 million in the year 2010 (Netflix, 2009, 2010). 1.1. Current Situation The market of Netflix can be divided into different segments or strategic groups. These groups are: a) Brick and mortar rental sales b) DVD vending kiosks c) Mail delivery services d) Online rentals and sales e) Video on demand services There has been rapid shift in the needs and preferences of the market because of the advancements in the technology. As a result the customers are now giving preference to digital rentals as compared to the physical rentals of the movie DVDs. There has been increasing demand of different movies and entertainment videos through online streaming. This results in providing customers with more interactive and easier home entertainment. Along with this the target market or customers of Netflix can be divided into two different segments, one is needy customers and second is convenience customers. The needy customers are people who still prefer old methods and are not used to new technologies. This segment normally consists of people with old age who are committed to certain entertainment programs. The segment of convenience customers consist of mostly young people, who are addicted to new technologies and want instant access to different movies and programs videos. The main competitors of Netflix in the industry are Blockbuster and Comcast. Blockbuster is leading the market by holding largest share of the market. Netflix has second position in the market and is creating competitive advantage on the basis of providing more convenience to the customers through streaming. At the same time the company is taking advantage of low cost associated with capital and input (Market Research report, 2009). 1.2. Strategic Managers The management and leadership of the company has been able to ensure the consistent growth and development. The leadership and strategic managers have always focused on continuous improvement and innovation. Employees of the organizations have been provided with the required empowerment and focus has always been on increasing the employee satisfaction in order to get maximum result and high productivity from them (Siegler, 2009). This in turn has enabled the organization to achieve its vision and long term strategic goals and targets. 2. Environmental Analysis The ...Download file to see next pagesRead More
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