A home movie service was established byReed Hastings that would do a better job pleasing customers than the traditional retail lease model to be provided by Netflix. But as challenges were encountered by it, it underwent several important strategy shifts, ultimately developing an operational strategy that were highly disruptive to retail video rental chains and a business model.
Netflix in 2011 Case Study Solution
The nation's biggest retail video rental company,Blockbusterwas slow to react, but ultimately rolled out a hybrid retail/online answer in the kind of Blockbuster Online. Aggressive pricing pulled in subscribers, but at a cost to both Netflix and it. However there was a brand new challenge on the horizon - the rapid growth of the online streaming service, which had a very different business model of the company's. The efforts of Hastings to separate the activity into two different businesses encountered with strong pushback from consumers and also the press. What was the best path forwards?
PUBLICATION DATE: August 19, 2014 PRODUCT #: 615007-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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