Notes for Netflix Case Study

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Internal: Resources and Capabilities: Resources-can be tangible and intangible: Intangible-brand name-well known; reputation for quality and service-1 business day delivery to more than 95-97%of subscribers, a choice given to the subscribers- dvd-by-mail option and instant streaming option; Management-a good resource. Organizational culture-business principles-“actions speaks louder than words”. Relationships with the netflix-ready electronics suppliers.Tangible: physical-50 distributions centres and another 50 shipping points-gives an ability to ship dvds to consumers within one business day. Financial resources: cash available for firms day-to-day operations. Technological assets- copyright license agreements, exclusive rights which have been negotiated in2011 to show a number of titles produced by several studious. Netflix had entered into regional license agreement to obtain movies and tv shows in Spanish and portugese from a big variety of major motion picture and tv studious. Also in march 2012 Netflix and Apple implemented an agreement whereby Apple Tv users could sign up for Netflix services directly through Their Apple TV devices using iTunes accounts.Special software designed by Netflix.Invested aggressively in to enable its software to instantly stream content to a growing number of Netflix ready devices, including PS3 XBOx. Netflix had developed software technology that allowed members to easily scan a movie length, appropriatness for various types of audience, primary cast members, genre, and an average of the ratings submitted by other subscribers. Netflix management saw the movie recommendations tool as a quick and personalized means of helping subscribers identify titles they were likely to enjoy. Netflix management believed that 50% of titles selected by subscribers came from recommendations generated by the software. The software algorithms were

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