Company Strategies
Netflix has focused on the bellows strategies:
Increase the service quality through a richly collection of content library. It has
aggressively sought for their sources of service by fill in new attractive movies and TV
shows, strengthen the relationships with the media studios and manufacturers. Their titles
have been increased rapidly from 55000 titles in 2005 to about 120000 titles in 2012.
· Improve customer experiment by Easy-to-use interfaces, integrate the business intelligent
into their software and improve the quality of their movies, in both resolution and content.
They also categorize their content based on customer rating system; introduce an “instance
queue” which includes the featured titles. They also established partnerships with the
entertainment devices manufacturers to integrate the “Netflix button” and platform into
their products to allow an instance streaming services.
Provide options to either use the instance streaming services or fast-one-day delivery DVD
rental.
Aggressively allocate capital into marketing activities. Netflix understand the importance
of doing marketing and continuously improving the consumer knowledge about their
business. Brand awareness also significant in current case while the competition still
remains high and customers can easily switch to any of their competitors. The figure
bellows showed the allocation of marketing activities from 2000 to 2011 in various
channels (internet search listing, commercial, marketing campaign, e-mail promotion, first
month trial, etc.)
Potential Issues
Looses due to the confusing operating between DVD-mail in rental and digital internet
streaming services made the company financial performance significantly decreased. The
figures bellow (Finance, 2013) showed that Netflix stock prices slummed badly in the
