Netflix Five Forces Essay

7218 Words Apr 17th, 2013 29 Pages
Strategic Report for Netflix, Inc.

Hillary Carroll Alex Menenberg Ian Kwok April 20, 2009

Netflix, Inc.

Table of Contents
Executive Summary..........................................................................................................................3 History .............................................................................................................................................5 Business Model .............................................................................................................................6 Competitive Analysis........................................................................................................................7
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In light of this challenging industry landscape, Oasis has focused on providing business strategies that will enable Netflix to maintain short-term and long-term profitability. In the short-term, Netflix’s profitability depends entirely on subscription fees. Therefore, the company must strive to increase their subscription base through marketing, competitive pricing, customer service, and breadth of titles. Simultaneously, Netflix must maintain their current subscription base by reducing churn, the percent of subscribers that cancel their Neflix subscriptions each year. Netflix must also remain cognizant of and adapt to emerging industry innovations and technologies, which could undercut Netflix’s current business model. In the long-term, Netflix needs to position itself as the firm that will bridge the transition from physical DVD content to digital content distribution. Currently, Oasis believes that Netflix is the company best suited to fill this roll but we have provided strategies that will April 2009 Page 4

Netflix, Inc.

ensure Netflix maintains their competitive advantage over new market entrants. These strategies include increasing investments in expanding streaming title selection, investing in more refined streaming technology, and most importantly establishing profit sharing relationships with studios and networks for exclusive control of content. The final recommendation

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