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Netflix. Inc.: VALUES AUDITName:Course Professor’s nameUniversity nameCity, StateDate of submission
NetflixIntroductionNetflix provides online movie streaming services to North America, South America, and some parts of Europe. It also provides entertainment in the form of DVDs, and movie renting. Advancements in science and technology have resulted in rapid growth of Netflix.it has also led to change of the methods used for distributing the DVDs. However, there has been a mushrooming of competitors who have emerged in the industry. In order for Netflix to retain its competitive advantage, it is important to evaluate its strategy, audit values, as well as comparing its performance against the Porter’s Five Competitive Forces. The purpose of this is so as to gauge its performance against that of its competitors. It also helps to determine its position in the competitive market. The enterprise also requires to carry out and internal and an external analysis so as to establish areas that need improvement, and also respond to activities of its competitors. This will help it to understand the nature of the market, as well as the competitors. The main competitors in the market include Cable Tv Networks, Apple, streaming services, Google, and Amazon. However, the main advantage that Netflix has over these competitors is that Netflix came into thelimelight first, having established the industry. Netflix has continued to succeed every day despite the rough and status of the economy of the United States. The reason has been partly due to the formation of partnerships with other firms so as to maintain persistence in the provision of the services. It is also an effort to remain
the leading force in the industry. Another challenge facing Netflix is the need for diversification, as a result of creating and innovation from its competitors. History of NetflixAccording to Hitt, Hoskisson and Ireland (2013, p. 315), Netflix has been the world’s largest online movie rental service for over a decade. The company was founded in 1997 by Reed Hastings and Marc Randolph, who had previously worked together at Pure Software. Hastings was inspired to start Netflix when he realized he owed an absurd amount of late fees on a rental of the movie Apollo 13. He immediately thought that renting movies should be similar toa gym membership where the customer pays a flat rate monthly and can rent and return movies at their convenience (Netflix.com, 2009). After conceiving this idea in 1997, Hastings and Randolph launched the Netflix website in April of 1998, out of Scotts Valley, California.Netflix has acquired an extensive movie collection, and at of the beginning of their 2009 fiscal year had a library of 100,000 hardcopy titles and has attracted approximately 10 million subscribers since its inception. On average, Netflix is shipping 1.9 million DVDs daily and just this past spring, shipped its 2 billionth title (Netflix.com/mediarelations, 2009). There are several subscription options available. They allow the customer to rent a certain number of
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Business, Internet television, Streaming media, Netflix Inc.