Please just read over my analysis on Netflix and write my an executive summary.
Introduction
“We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact.” Netflix’s mission to provide a great service for its customers and be a profitable company in order to have a great return for its investors. In 1997, Marc Randolph former Netflix CEO began developing Netflix based on mailing DVDs with funding from Reed Hastings also Netflix CEO. In April 14, 1998 Netflix’s website went live and Netflix was seeking out technology writers and offered them a chance to be the first to write about Netflix and in return they would help Netflix with testing its rental system. This helped Netflix because it provided Netflix the chance to fix any operational issues and also provide immediate access to the technology savvy customers on the launch day. In order to attract new customers, Netflix used electronics manufacturers by convincing them to package a Netflix coupon with new DVD players. The website was created to “duplicate the best part of the video experience.” Netflix established this by creating personalized recommendation engine which replaced store clerk suggestions and also suggested older movies instead of new releases. This made Netflix unique because it created a reputation of having rare films. In the beginning, Netflix’s’ business model was based on the brick-and-mortar video stores. In 1999, Netflix began to test different ways to increase rentals, the first concept was Home Rental Library in which Netflix sent six DVDs at a time for a $20 per month subscription and after returning all the discs, customers were able to select six more DVDs to rent. The second concept was the Serialized Delivery concept where Netdlix used per disc rental pricing and allowed customers to make a short list for movies they would like to rent in the future. The test group liked both concepts, as a result, Randolph combined both concepts and created the Marquee Plan. In the Marquee Plan customers were offered four movies for a subscription that cost $15.99 per month. Later, in 2007 Netflix began on-demand streaming service in which Netflix allows subscribers to watch streaming content from their televisions. In 2007, Netflix launched an on-demand streaming service where the website allowed the subscribers to be able to watch one thousand titles on their computers instantly. In 2013, Netflix released “House of Cards” which was its first original series and followed with other hits such as “Orange is the New Black” and Stranger Things.” By 2016, Netflix had planned to release 600 hours of original content while having 30 shows or films in the production process which had doubled since its 2015 output of content. Relationships with Internet providers became strained because of the heavy network usage, as a result, Netflix launched offline viewing which allowed users to download content and watch it on subways, airplanes, and emerging market countries. Currently, Netflix is a streaming service that is competing against many new rivals such as: REDBOX, HBO NOW, HULU, AMAZON VIDEO, SLING TV, and YOUTUBE RED. “Our core strategy is to grow our streaming subscription business domestically and globally.” Netflixs vision to expand globally while also growing domestically.
