Netflix in 2011 Assignment Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Netflix in 2011 Assignment Case Solution

On the other hand, Blockbuster was getting far behind Netflix because it didn’t follow the trend and continued to run its physical stores. Initially one of their spokesperson highlighted that they didn’t feel that there is enough demand for internet based streaming and thought that the business model was weak but soon after, Blockbuster followed Netflix’s style business model which they called Blockbuster online. It offered larger amount of movies and was subscription based model unlike their late fee traditional model. It also came with discounted price strategies to capture some of the market from Netflix which was termed as land grab by Netflix’s head.

Though the changed business model was one of the factor for their downfall. They shifted to online streaming model which asked for a change in operational model. They had large physical stores with employees working in them, with the new model they had to think about their stores and the cost that had been incurring from buying the property. They were moving towards an unknown domain. Hence they then decided to maintain their focus on bricks and mortar buildings. Blockbuster responded late to the change of trend and once the market leader was following behind. The cassettes and even DVDs were getting obsolete as the time passed and customers were looking into other options. (Tyler, 2017)

NETFLIX video STREAMING TECHNOLOGY

Video on demand was relatively a new option for the consumers and it required a healthy capital for the investors to give it a try. The potential investors would have to bear the fixed cost of licensing for the movies they will be providing. By looking at the Netflix business model it seemed that the company could go for VOD offering. They initially went for the DVD rental service but soon realized that online business was getting a boost when they saw companies like Youtube was earning on the back of their online video streaming business. Other than this industry analysts also expected the video on demand idea to rise. It was a pleasant combination of internet downloading and pay-per-view programming. As a result, customers would get a huge library and could choose from thousands of options as per their interests. It was predicted that soon TV and internet would be connected and would give the opportunity to watch the videos on TV. As the idea was getting familiar, entrants were taking their position into this new industry. Hence, Netflix had to make an initiative to enter in this new field.

POSITIONING FOR THE FUTURE:

DVD industry was soon be getting obsolete and for Netflix it was really necessary to look for an alternative. To move further towards VOD, Netflix ought to develop a separate subscription plan for streaming services. They could look to do it as the trend of watching videos on HD TV approaches further. Netflix had to offer “watch now” service free of cost so that it could be able to gather more customers. They had to focus on “watch now” feature because it could give an unfettered competition to movie studios as their DVD sales would go down. Other than that, it would give an opportunity to users to instantly watch movies at one click right after they queued the movie on the same page. To move forward, they will offer three different member ship plans to their users. The subscription plan will be based on the streaming quality and the screens concurrency. The cheaper plan would offer video streaming in standard quality and on same screen and as the plan gets more expensive the streaming quality and the number of screens to watch the content will increase as well. (John, 2018) Other than this it can look to connect the TV with the Netflix website so that the user can instantly watch the movies on their TV.

DIGITAL TRANSFORMATION

The organizations need to understand they have to make quick adjustments to stay relevant in fast moving technological based world. The culture has to change and they need to adopt the new digital business models and strategies. The companies need to inform their employees from top level executives to junior officers that they have to act different. New technology for interaction with the customers are readily available. Through social media advent they can ask customers their issues and can get to know about their experiences regarding any service or product. The digital transformation has allowed the companies to interact with their customers more conveniently and can provide them with better satisfaction. The rise of Ecommerce and mobile internet can give the companies a breakthrough in increasing their sales and market their product widely. For that they also have to make a stronger social media team and a bigger IT team because of whole amount of data serving. (richard, n.d.)

RECOMMENDATIONS

Netflix is a company that is trying to excel in digital transformation as it already is giving a tough competition to its competitors like Blockbuster and HBO. The company is transforming its business model to subscription based business model from traditional business model. It initially started as DVD rental service and gradually made a transition into streaming videos. Original content and other subscription packages are thought to be one driving force for gaining customers’ confidence and creating a huge customer base. It had connected TV with Netflix so that customers can have the privilege of watching Netflix videos on their TV sets. The company has created value and has led to an industry leader like Blockbuster to struggle for its survival.............

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