Netflix… behind the scenes

Thinking about strategy
• Characterize and trace Netflix’s strategy over time.
– Did they hit a home run on the first swing?
How about the second swing?
– What caused them to swing again?

Netflix Strategy
• When Netflix shifted its strategy, what caused the shift?
• How did they go about formulating new plans?
– Were the new plans well thought out or merely improvised?
– What did they use or do when formulating a new strategy?

Comparing Netflix and BB
• Compare and Contrast Netflix and BB
– Revenue model
– Value proposition
– Customer focus and motivation
– Value Network Stakeholders

The role of Logistics and
Operations for Netflix?
• What is the role of Netflix’s distribution network on their business model and logistics system?
• What was the role of…
– The Distribution Network
– Network Partners
– Inventory management
– Analytics

The role of Logistics and
Operations for BB
• What is the role of BB’s distribution network on their business model and logistics system?
• What was the role of…
– The Distribution Network
– Network Partners
– Inventory management
– Analytics

The Recommendation System
• How did the recommendation system influence
Netflix’s performance?
– How did this system work?
– What influence did it have on inventory management
– How did it influence customers?
• Attitudes?
• Produce Choice?
– Did it have an influence on partners?

Going forward with VOD
• How had Netflix responded to the disruptive “technology” of VOD?
– When considering BB and Netflix, who will win?
– Does Netflix have an advantage over BB?
– What is the role of partners in succeeding with
VOD?
– Who are the power players in the VOD relationship?

Going forward with VOD
• Was VOD a disruptive innovation for
Netflix?

Netflix today

Missteps? Disruptions?
• What happened to Netflix in the fall of
2011?
– Management misstep, disruptions, what?
– How did they recover?

Consider Porter

Competition
• Sometimes good competitors just do a better job…
– Redbox
– Amazon
– Apple
– Hulu
– Cable and Network Operators

That was then…this is now