Netflix Undergoing a Strategy Shift Essay example

921 Words Mar 1st, 2013 4 Pages
Assignment One: Strategy Changes
Within the past year, Netflix has undergone many strategy changes. One of the most recent familiar changes was when they split their business into a visual and virtual model. Many consumers protested and had mixed feelings regarding this strategy change. However, they did not get it all wrong. In fact, the company has regained stability and continually looked for more innovative routes to take their business. The most current strategy alteration that is creating a media buzz-binge is Netflix’s new strategy.
The original Netflix business foundation was based around the idea of being a leader in mailing DVDs. In 1999, to compete with the video rental market, especially Blockbuster, they launched a
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As previously mentioned, Netflix prides themselves on having and innovative business model. As far as can be seen, each release of a new business model has increased customer utility by bringing in new customers from different industries they have entered like rentals, streaming, and currently binge viewing. Not only have they brought in new customers, but they have been able to continually leverage their operations over their competitors in each market and be profitable. Nonetheless, all the planning involved in the strategy changes provides benefits that Netflix anticipates.
The bold moves of Netflix create many advantages that foster future growth opportunities. Furthermore, bringing in new customers and the possibility of expanding services for those who already subscribe to Netflix includes other benefits as well. Overall, the hopes are to hold customers longer and increase their viewer retention rate. On the other hand, one of the things Netflix had struggled with earlier on but was addressed and enhanced was the content gap. Airing a binge of episodes at once compensates for the viewer gap between primetime television and internet streaming. This is due to the fact that primetime television stations and internet companies that stream television episodes do not offer this type of viewer experience at this point in time. Having a larger customer base, that is satisfied with their account spending ultimately increases

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