Intl Business Review 1

Intl Business Review 1 - Bryan Redic Acct 1 International...

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Bryan Redic Acct 1 International Business Reviews Netflix (NFLX) – U.S. Netflix is a thriving company that has been one of the leaders in streaming movies and TV shows. They have also been a company that allows its consumers to rent and return movies by mail. Though these two services are quite similar, they have different needs in order to grow. Due to this fact, Netflix has decided to split the business into two separate businesses. The streaming of movies and TV shows will still operate under the Netflix name, while the renting and returning of DVDs will operate under a new name, Qwikster. According to Reed Hastings, CEO of California-based Netflix, the two businesses have very different cost structures and marketing needs. The person in charger for marketing would have to split their time between the streaming side of the business and the DVD-by-mail side of the business. This would cause that person to not be able to complete either task as well as possible. With the businesses split up, A person in charge of marketing can focus solely on the streaming or the DVD-by-mail, which would allow for much more effective marketing. This concept is the same for the rest of the organizational task. The first step in branching out for the new business Qwikster is that it will now allow its subscribers to rent video games. They have already used the mail ordering business to open up to a completely new demographic. The transition has definitely been a test to the management of Netflix and their customer relations. Netflix originally stated that there would be pricing changes which would cause for an increase of about 60 percent for those who wanted to stream movies and order DVDs as well.
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Intl Business Review 1 - Bryan Redic Acct 1 International...

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