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Case Study 2 - Netflix Inc. (A) The 2011 Rebranding /Price Increase Debacle (latest ) complete.

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Case Study 2 - Netflix Inc. (A) The 2011 Rebranding Price Increase Debacle Case Study 2 - Netflix Inc. (A) The 2011 Rebranding /Price Increase Debacle (latest ) complete. Case 15: Netflix Inc: The 2011 Rebranding/Price Increase Debacle Conduct a strategic analysis using the Executive Summary template. Prepare and submit a three-page executive summary that discusses what strategic alternatives are available and provide a recommended strategy. You are to work alone to analyze and prepare the Executive Summary for the case. NOTE: Click "Submit Assignment" in the upper right hand corner of your screen to turn in your Executive Summary no later than Sunday, midnight CT.. Name your file with your name and the unit number, i.e. Jones1 or Brown1. Your file should be in either Microsoft word (.doc or .docx) or rich text (.rtf) format. The following information will be required for the Executive Summary. TEXTBOOK CASE ANALYSIS GUIDANCE(CAG) and the TEXTBOOK BUSINESS CASE ANALYSIS EXECUTIVE SUMMARY TEMPLATE Preview the documentThese files are required for the unit textbook case studies. Synopsis of the Case: The content of the synopsis should present relevant background facts about the case under examination. Relevant Factual Information about the Problem or Decision the Organization Faced: State the precise problem or decision the organization faced. The section should include information that addressed the business issue under examination. This section should be no longer than a single paragraph. Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials: This section should be the bulk of your paper. Analysis of the business problem or decision in light of the course concepts must be presented, as well as the business lesson another organization could learn from this situation. Besides citation to the text, learners must conduct research in the University library related to the top. Citing the textbook only is not enough to demonstrate you understand and can apply the course objectives. Here is where comparative and contrasting positions should be considered and examples and illustrations provided. Recommendations: Provide logical recommendations to address the business lesson identified above. The recommendations need not to be specific to the organization examined, but should consider how other organizations, if similarly situated, could lessen the impact of the problem or decision identified. Recall, that the organization under examination has already moved pasted this problem so any recommendations made, at this point, are fruitless. The focus of this section should be on what other companies should be aware of to address similar problems or decisions. Citation to the textbook alone is insufficient for analysis in this section. Learners should conduct research in the University’s library to support their positions. Depth of scholarship is not demonstrated by providing personal opinions alone, but by using examples, analogies, comparison and illustrations from the academic literature. Not only does this synthesize the material to assist the reader’s understanding, it is an effective way to present the academic sources and extend the discussion of your ideas. This section should be a paragraph or two. Alternative Recommendations: This section is not a continuation of the prior. Provide suggestions for how to avoid the problem or decision the examined organization faced. Analysis here should be may be forward- thinking, predictive or, most likely, preventative in nature but tied to the thesis statement. Again, opinion is insufficient to provide the required academic analysis. Sources, other than the text, must be provided to sustain the statements made. This section should be a paragraph, at most. Conclusion: End the assignment with a summary of the important points made in the document. No new information may be presented. Writing a conclusion can be done by rewording the opening or reformulation the topic sentences of each paragraph to make a summary for the reader. This section should be a paragraph, at most.

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Week Eight
Case Study #2 - Netflix, Inc. (A): The 2011
Rebranding/Price Increase Debacle




WEBSTER UNIVERSITY MANAGEMENT
AND STRATEGY 5650

, 1
Case Study #2 - Netflix, Inc. (A): The 2011 Rebranding/Price Increase Debacle
Executive Summary


Netflix is an American entertainment company founded on August 29, 1997, by Reed Hastings

and Marc Randolph. Netflix is headquartered in Los Gatos, CA. Netflix specializes in Video on

Demand (VOD), streaming media, and DVD by mail. Netflix has expanded into original

television and film production. Netflix has offices in Europe, Brazil, India, Japan, and South

Korea. Netflix initial business model started with DVD sales and DVD rentals. Netflix expanded

into digital streaming in 2007 while migrating from Netflix maintained cloud servers to Amazon

Web Services (AWS) in 2008 for Netflix to concentrate on products and services unique to them.

Netflix successful migration to AWS has allowed them to expand into different countries,

offering new features, and self-customization. AWS services enable Netflix to track user’s

preferences, minimize downtime, and Netflix administrative rights to customize along with

scaling services to taste. Netflix launched offline viewing in 2016 to allow for more accessibility

and compensate for members with limited internet connectivity. Netflix and Comcast have

integrated services to enable more availability. Netflix is well postured to integrate their services

into many mobile devices, tablets, smart televisions, and devices that haven’t been created yet.

Spencer Wang Netflix Finance & Investor VP reports the following about Netflix Q4 2016 in a

letter to shareholders:


 $8.83 Billion total sales
 93.80 Million total memberships
 44.37 international memberships
 $154 million in DVD operating income
Netflix has a Board of Directors (BOD) and a team of Executives who oversee daily operations.
The case analysis will look at Netflix through various business strategies. Netflix with its
numerous threats and well document pricing debacle is well postured to overcome almost any
deficiency. Several recommendations have been made in this analysis if adopted, will help
Netflix to remain on the competitive frontier.

, 2
Case Study #2 - Netflix, Inc. (A): The 2011 Rebranding/Price Increase Debacle
Historical and Current Information


Marc Randolph and Reed Hastings founded Netflix Company in 1997(About Netflix). In

1998 Netflix launched its DVD mail delivery service with Blockbuster, Hollywood Video, and

Walmart being Netflix’s main competition. Netflix offered tiered DVD rental service from $7.99

to $19.99 for unlimited DVD exchanges. Netflix offered Blu-ray disc rental for an additional fee.

Netflix sold used DVD’s and Blu-ray billed as rentals but was discontinued around 2008 (About

Netflix). Around 2000 Netflix begins to employ analytics to track customer behavior to

differentiate themselves from the competition. Netflix also created a $1 million prize for

quantitative analysts outside the company who could improve Netflix first generation search

engine Cinematch algorithm by at least 10 percent (prize won by BellKor's Pragmatic Chaos

21SEP09). 23MAY02 Netflix Initial Public Offering (IPO) was $15.00 a share.
Table 1




Note: Netflix IPO to present Reprinted from Ycharts

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