Retrieved from pepitone j 2011

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Retrieved from Pepitone, J. (2011). Netflix hikes prices for DVDs + streaming. CNN.com. Retrieved from ?iid=EL27
BUSI 690-D06: Group Case Study 1: NetflixPepitone, J. (2012). Netflix stock slumps 6% after Amazon signs Epix deal. CNN.com. Retrieved from -epix/Rothaermel, F.T. (2013). Strategic management: Concepts & cases. New York: McGraw-Hill.The Associated Press. (2009). Redbox’s vending machines are giving Netflix competition. The New York Times. Retrieved from 28
BUSI 690-D06: Group Case Study 1: NetflixAppendix A: Internal Factor Evaluation (IFE) MatrixInternal Factor Evaluation Matrix (IFE)StrengthsWeightRatingWeightedScore1.Convenience0.0440.162.Swift domestic growth0.0840.323.High-quality selection of independent films0.0430.124.Strong value0.0640.245.Original content quality0.0840.326.Emphasis placed on film ratings by customers0.0830.247.Customer retention strategy0.0440.168.Ease-of-use0.0440.169.Utilization of emerging technologies0.0230.0610.Strategic partnerships0.0230.06WeaknessesWeightRatingWeightedScore1.Slow international growth0.0810.082.Impediments to international market participation0.0810.083.Loss of exclusivity contract with Epix to Amazon.com0.0420.084.Decline in DVD-by-mail subscriptions0.0610.065.Expired contracts with Sony and Starz0.0420.086.Difficulty with raising subscription prices0.0420.087.Significant cost of acquiring content0.0610.068.Slowing domestic subscriber growth0.0610.069.Internet connectivity issues0.0220.0410.Questionable response to new net neutrality rules0.0220.04TOTALS1.002.50Appendix B: External Factor Evaluation (EFE) MatrixExternal Factor Evaluation Matrix (EFE)WeightedScoreOpportunitiesWeightRating1 Decline in cable television subscriptions0 4 0 29
BUSI 690-D06: Group Case Study 1: Netflix2 Increase in consumer ownership of streaming devices0 4 0 3 Increase in opportunities to expand globally0 3 0 4 Continued opportunities to develop original content0 4 0 5 Constant release of new content such as films and television programs0 4 0 6 New licensing opportunities0 3 0 7 Failure of competitive forces such as Redbox's Redbox Instant0 3 0 8 Continuing popularity of original programs0 4 0 9 Lower cost of purchasing televisions0 3 0 10 Increase in demand for streaming video0 4 0 ThreatsWeightRatingWeightedScore1 New net neutrality rules0 2 0 2 Loss of contracts to competitors0 2 0 3 Faster international success on the part of some competitors0 2 0 4 Desire on the part of established organizations to stream video online0 3 0 5 Partially-free streaming services such as Hulu0 2 0 6 Overreliance on outside entities such as internet providers0 2 0 7 Large corporations are entering the industry0 3 0 8 Swift decline in DVD rentals0 2 0 9 Emergence of rental kiosks such as Redbox0 3 0 10 Video-on-demand offerings by cable television providers0 3 0 TOTALS1 3 Appendix C: SWOT Bivariate Strategy Matrix30

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