Netflix

Long-run Business Decisions Report Compare the success of Netflix with the failure of Blockbuster discuss how the success of failure is explained due to the quality of management of a macroeconomic factor. Netflix Netflix’s IPO in 2002 was the first public company whose business plan focused on consumer experience and needs. When co-founder Reed Hastings had to pay $40 dollars in late fees for Apollo 13 he came up with a subscription model that removed this negative aspect. Initially operating with a postal model, which was quickly replaced with an online streaming model as soon as it was viable to the majority of their consumers, Netflix was able to keep focusing on the consumer experience and quickly identified changing needs of consumers …show more content…
Figure SEQ Figure * ARABIC 4: Changes in Blockbusters Debt and Assets Blockbusters inability to manage current debt and select appropriate investments for its debt within a high interest rate environment prevented it from considering possible developments which would lead to success. Figure SEQ Figure * ARABIC 5: Financial Results of Blockbusters Inability to Manage Debt Impact on the Rental Film Market Due to Mismanagement of Macro Factors Firms such as Blockbuster and Netflix who are competing in a quickly changing environment must be able to identify avenues which can provide continued success. Netflix ability to effectively manage the macro-economic factor of investment enabled them to succeed while Blockbusters inability to manage the macro-economic factor of debt led to its bankruptcy. Such events will lead competing and new firms within the rental film industry to be constantly aware and always looking for the next innovation to avoid the same fate as