Agenda

1. Introduction

2. Vision & Mission

3. SWOT Analysis

4. Products and Marketing

Strategies

5. Financial Overview

6. Culture at Netflix

7. Knowledge Management

8. Operational Plans

9. Corporate Strategies

10. Industry Forces

11. Global Management

12. Expansion

13. Innovation

Netflix - Introduction

● Founded in 1997

● Headquartered in Los Gatos, California

● Offered DVD Home Delivery via snail mail

● 2001 announced intention to create a VOD

business

● By the second quarter of 2014, there were

more than 50 million subscribers globally

Vision

● Becoming the best global entertainment distribution

service

● Licensing entertainment content around the world

● Creating markets that are accessible to filmmakers

● Helping content creators around the world to find a

global audience

Mission

“Our appeal and success are built on providing

the most expansive selection of DVDs; an easy

way to choose movies; and fast, free delivery”

SWOT Analysis

Products

Customers

Marketing Strategies

Create Ubiquity

Market a minimum viable product

Give Prospects What They Don’t Know Want

Quickly Abandon Dying Platforms

Publish and Distribute

Netflix Financial Status Overview

Netflix Financial Status Overview

Netflix Advertising Expenditures

As you can see, the majority of Netflix's advertising budget is

dedicated to TV advertising. They fed that if the potential

customer is already sitting in front of the TV, streaming movies

through TV is something they would interest them.

Netflix’s Culture

● Values are what we Value

● We are like a pro sports team

● Freedom & Responsibility

● Context, not Control

● Pay Top of Market

● Promotions & Development

Life at Netflix

Management Structure

Knowledge Management

● Big Datao used to gather and analyze information for creation

of original content

● Netflix Open Source Software Center (OSS)o repositories full of various cloud managing software

o powered through github

● Orientation of values

Operational Plans

● Focus on personalized recommendations

● Create more original content

● Expand and grow to international markets

● Maintain good connections with ISPs

BCG Matrix

Question Marks● DVD-by-mail service

Dogs

Stars● Streaming through 3rd party devices

○ PS4, Wii, Xbox

Cash Cows● Streaming Services

○ national

○ international

Porter Five Industry Forces

Threat of New Entry- well established brand

- some expense to enter industry

- experience needed

Overall: moderately low threat

Competitive Rivalry- large number of competing

companies

- moderate customer loyalty

- quick industry growth

Overall: high threat

Threat of Substitution- very easy to find an alternative product

- moderate number of buyers

Overall: moderate threat

Supplier Power- moderate cost to switch suppliers

- moderate number of suppliers

- able to change and substitute

Overall: moderate threat

Buyer Power- many different customers

- diversified customer base

Overall: low threat

Global Management

• Internet streaming media in more than 40

countries and continents like North America,

South America(Except Cuba), Denmark,

Ireland, Netherlands, Norway, Sweden, UK,

France, Switzerland, Austria, Belgium,

Germany

• More than 50M worldwide subscribers

Management Strategy

• Limited offer with low cost and low risk

• Collect extensive data about what people

like, structure programming and investment

around consumer behavior

• Time consuming process with lower profits

Expansion

• Launched in Canada in 2010

• Started expanding in Latin American

territories with content in English, Spanish

and Portuguese

• Plans of expansion in South East Asia, India

and Japan

Challenges

• Expansion needs scalability of database and

servers

• Cultural Exception Law in France

• Competitors worldwide: Germany has free TV

channels, Amazon Prime, HBO Online, Filmo TV

• Payment Systems for customers in Latin America

• Slower than expected subscriber growth in Europe

Innovation

• DVD by Mail, Partnering with DVD

manufacturers in 1997

• Stepping into Streaming in 2007• Online Streaming, Application on consoles, Set top boxes

• Profiles for users

• Original Content

Original Content

• House of Cards: Viewership surged 8 times

on the release of second season

• Orange is the New Black

• Marco Polo(Upcoming)

Future- 5 Year Projection

Look at the bigger picture

-Francis Underwood

• Further Expansion: Probably in Spain and

Italy

• Cable Network: Lowers risk on being only

over internet

• Delivering 4K over the net

References

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3. WikiWealth. (n.d.). Retrieved December 2, 2014, from http://www.wikiwealth.com/swot-analysis:nflx

4. Gianos, T. (2014, November 19). Node.js In Flames. Retrieved December 2, 2014, from http://techblog.netflix.com/

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http://knowledge.wharton.upenn.edu/article/netflix-one-eye-on-the-present-and-another-on-the-future/

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21.

Thank You