Netflix Case Study Analysis

Does Netflix have deep enough pockets to outbid its rivals for broad access to the studios’ TV and movie content? Can it convince the studios that it is not a direct competitor? Netflix has managed to evolve with the ever-changing technology industry in such a way that their ability to keep up with the changes in the market, gives Netflix the competitive advantage to stay ahead of the competition such as Walmart and Amazon.com. Today’s market is moved by technology where Netflix offers its subscribers the ability to utilize their online movie service virtually on any device from cell phones, tablets, IPods, computers, Blu ray disc players, to game consoles like Xbox 360, PS3 and Nintendo Wii.

With the convenience of not having to set foot outside the comfort of their home, a wide variety of movie titles to choose from and with approximately 15 billion subscribers paying a monthly service fee ranging from $8.99 to $47.99, Netflix has the business model and numbers to revolutionize the movie rental business while continuing to provide better services than the competition. Netflix reported revenues of 3.61 billion in 2012, numbers that definitely give them deep enough pockets to outbid its rivals for broad access to studio TV and movie content. Netflix can convince studios just by demonstrating how their 2009 partnership with Vizio & LG as well as the one with Google TV in 2010 can be of more profit to both companies than competing against each other.

How much time should Hastings and his executive team devote directly to hiring? Should he and his executive team be directly involved, or is this something that he should delegate? The time I would devote to hiring may vary depending on each individual situation but most definitely I would plan ahead and have a system set up in order to ensure the most effective process in assessing each individual considered for hiring. The hiring process is something that should be delegated and done through human resource which in turn will ensure a thorough background check on possible candidates in hopes of selecting efficiently.

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What could be provided in way of pay, perks and company culture that will attract, inspire and motivate top talent to achieve organizational goals? I would consider offering a more relaxed and enjoyable environment where my employees would feel they have control of their time rather than feel they have someone watching over their every move. This would lead them to have a sense of trust coming from top management. Set up a system where every employee has the opportunity to share their own ideas empowering them towards a common goal. Some other ideas might be offering onsite daycare for those employees with children, reward the employee of the week with a store gift card, or discounts at local restaurants in the area to be used during lunch break. These things can serve as a motivation towards achieving organizational goals.

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