Operations Management of Netflix Essay

4268 Words Sep 21st, 2014 18 Pages
EXECUTIVE SUMMARY Netflix began in 1997 as a revolutionary idea by CEO Reed Hastings and software executive March Randolph. Before long, in 1999 Netflix launched its major line of business, the online subscription service, which radically changed the way consumers viewed movies and television. For a young company in an innovative and growing industry, Netflix has set itself up for a tremendous journey. The company has had much success due to its adaption of a modern business model and strength in operations management. Its continued reliance on and improvements of operation management principles is necessary to continue growing and bringing in profits. The following analysis focuses on operation management principles attributable to …show more content…
In order to maximize production, Netflix comprised a team to focus solely on continuous integration and automated deployment tools. These automated tools are vital to Netflix operations and productivity because they limit the amount of work developers need to do and provide them with information to perform and make highly technical and complex day-to-day decisions. However, it is important to remember that since Netflix falls within the service sector, there is a special challenge to measure productivity and productivity improvement. Furthermore, productivity can be difficult to improve because Netflix must aim to satisfy the unique, individual attributes of its viewers. Netflix has taken to view operations as a distributed system and has made it measurable based on algorithms and automated deployment tools. In the future, Netflix must be open to radically changing its operation models and productivity measurement as the internet environment and user-base grows.

OPERATIONS STRATEGY "Our core strategy is to grow our streaming subscription business domestically and globally. We are continuously improving the customer experience, with a focus on expanding our streaming content, enhancing our user interface and extending our streaming service to even more Internet-connected devices, while staying within the parameters of our consolidated net income and operating segment

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