Netflix Case

Thursday July 14, 2022

Netflix Case

|
January 30, 2017

The Netflix case is really great for a number of reasons. First, it is current and the company is still evolving their product line. Second, it’s something that many if not most of us use and know well. Third, it brings home a number of great lessons in technology management from the importance of meeting customer requirements to the need to constantly evaluate your offering, to the role of process improvement in a growing organization. Last, and for those of you with a strategic mindset, it explores the nature of a sustaining versus a disruptive innovation when the case turns to the move to VOD.

Our questions are going to be concerned with the basis for competition between Netflix and Blockbuster. Specifically, we will explore the following questions:

Ask yourself if you really understand what jobs Netflix and Blockbuster do for their customers. How would you describe what they each offer?
Would you have been long or short Blockbuster stock at the time of the case? How about Netflix? Why?
Compare Netflix and Blockbuster’s respective profit models. How might these differences affect their respective strategies? Are the models competitive or is one superior to the other? Why?

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Category: Psychology and Education


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