Netflix Essay

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MAN3083 Organizational Behavior BBAM03ON September 15, 2012 Professor Parks Abstract Within this case study, people will learn about the innovative start up of Netflix, and how the company changed the landscape of renting DVD’s. People will see how Netflix CEO Reed Hastings came up with the idea of ordering first run movies by internet and having them delivered right to people’s front door. Many changes to the business structure had to be made to fight off competitors and even joining forces with another. Because of its innovation to new ideas, and looking into the future, Netflix continues to be the leader in how people view their movies at home. Integrative Running Case Study: Netflix Part I In April of 1998, Netflix set out to do what no other DVD rental retailer has ever done; rent first run movies over the internet, receive them by mail, and then return them by mail (Griffin & Moorehead, 2012, p. 59). This all came about when Reed Hastings returned a late DVD to Blockbuster and paid a hefty penalty in the process (Griffin & Moorehead, 2012, p. 59). This set off a whole use of concepts, looking into the future, and making the necessary changes that set Netflix apart from its competitors. The one thing that Reed Hastings was able to do as CEO at Netflix, was look into the future and see that the straining economic conditions required a change in how the company reprimanded its customers for late fees and charged them for subscribing. Additionally, Netflix seemed to use the most inexpensive way to get the company’s vision to its consumers; by word of mouth, as satisfied customers had no problem spreading the word about the direction the company was heading (Griffin & Moorehead, 2012 p. 59). All of the past innovative ideas paid off as Netflix ended 2009 with a whopping 12.3 members which was up 31 percent from 2008 (Netflix

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