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