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expanding our streaming content, enhancing our user interface and extending our streaming service to even more Internet-connected devices, while staying within the parameters of our consolidated net income and operating segment contribution profit targets. (Para. 1)Netflix has stated it planned to grow its core business to 20 million subscribers with its stand-alone online video business. In 2006, Netflix dedicated $10 million into VOD investmentswith another $40 million in the year 2007. In 2007, Netflix’s CEO Reed Hastings knew there would be a small market for creating separate businesses and profit centers, but, “he believe that there would eventually be resolution for the issues of content and connectivity, allowing this market to mushroom” (Rothaermel, 2013, p. C136). The ultimate objective and strategy of Netflix was emphasizing the role of customer’s queue as a mean of retention. Hastings stated, “Our explicit strategy is to invest in things that are strategically relevant to customer satisfaction
NETFLIX4potential” (p. C133). This was the key invention of Netflix’s subscription model; during this time, 50 movies averaged in the queue that turned out to be a big switching cost and invention for the strategy of the company.New Mission Statement – NetflixNetflix Inc. has built the company to the original mail order Business Model and has managed to successfully invent them in the movie industry by way of capturing the competitive advantage with no fee policies, fast delivery, and a large selection of movies. In conjunction withthe existing business model, the proposed new mission statement of Netflix would be suggested and implemented with the following components as follows: It is our mission to provide customers continually with the ability to purchase and view the latest movies via the company website or through our DVD mail order program. Netflix customers consist of the younger generation in demographic areas consistent with customers in the age range of 25 – 40 years old. Our major products and services is to provide Internet users with the ease of ordering DVDs via the website shipped to them in a reasonable amount of time with no late fees when DVDs are returned before the due date. Netflix will continue to compete in both the United States and international markets while enhancing our technological efforts to center on VOD enhancement features. The company is committed to surviving, growth, and profit and creating financial soundness through its existing business model. Netflix’s basic philosophy will continue to include providing customers with stellar services and value with quality products. Netflix’s distinctive competitive advantage is generated from that fact that the company plans to invest in products and services that are strategically relevant to satisfying customers. Netflix’s continued mission is to create a public image of being the world’s largest movie rental provider that
NETFLIX5provides the best pricing strategies compared to that of competitors. Netflix values the concern of employees and believes that each employee play a huge role in the success of the business.