● Write a short description of this company by highlighting its mission and vision.
Netflix is a popular production company that aims to entertain the world as its corporate
mission and its corporate vision is to continue being one of the leading firms of the internet
entertainment era (Rivera, 2019). It operates as a streaming entertainment service company
providing access to best class TV shows, movies and documentaries through subscribing the video
streams upon customer’s preferences. The streaming consists of 30 languages and 190 countries
which pertain to Netflix being the world’s biggest fans of entertainment (Netflix, 2021). To have
access to Netflix, people who want to subscribe must pay a monthly subscription to fully enjoy
watching without any ads or commercials. With this, it is more convenient to have a Netflix
account than going out and watching the latest movies in the cinema in times of this pandemic.
● Describe the Innovative Product
Netflix was popular for giving good quality of streaming service, and having a large
selection of features. It offers various forms of entertainment such as award-winning TV series,
movies, anime, documentaries and other content available on thousands of internet-connected
devices. Through its gold standard for streaming services, Netflix was able to provide tons of
original content to keep streamers entertained. The more the consumer watches, the better Netflix
gets at recommending TV shows and movies consumers will enjoy. However, Netflix priced its
service to optimize its content spend and because of this strategy and the quality of content, it
allowed to charge more than its peers, giving it competitive advantage.
Netflix is good value for money since subscribers can stop whenever they run out of shows
for a while. Subscribers can find there are one or two shows on every streaming service Another
key advantage of Netflix is that it can distribute its own programming to subscribers around the
world.
● Is this a sustaining or disruptive innovation? Why?
Netflix is considered as a disruptive innovation because it disrupted an existing market by
using a business model and technology that are very different from those of incumbents. Thus, it
is the first major disruption in the television and movie industry as the on-demand platform uses
the internet to provide a low-cost alternative to typically costly cable TV services (Kylliäinen,
2019).
Netflix began as a DVD-by-mail rental service before expanding to an online subscription-
based movie streaming service. Its mail-in movie membership service first appealed to early
adopters who were already accustomed to internet buying, rather than Blockbuster’s mainstream
clientele. Blockbuster on the other hand, dominated the video rental industry throughout the 90s.
Blockbuster began to lose considerable revenue as Netflix entered the market and began targeting
segments that Blockbuster had previously ignored. Netflix did not break into the public until it
transitioned from DVD mail to internet streaming. People could now access a range of films and
