NETFLIX CHALLENGES

Netflix Challenges



Acknowledgment

This work would have not been possible without the help of many. Thank you to all of my family who have encouraged me during this process. I appreciate your love, support, and cheerleading. Also, thank you to my friends who have supported me in so many ways through each phase of the process. Special thanks to the faculty. I am most grateful to the opportunities you have given me. This would not have been possible without your support.

Abstract

The research paper discusses the challenges den problems faced by Netflix and how they can use the evidence based management to tackle these issues. To identify these problems, the research uses the qualitative method where the sample of 15 companies is taken for online survey interviews in order to identify the current management practices based on the evidence management system. These findings then can be replicated to Netflix keeping in view the benefits that the sample population is having by the use of evidence manaegmetn system.

Table of Contents

Introduction4

Executive Summary4

Problem Statement: The Challenges6

Literature Review8

Knowledge and Evidence Based Management10

Research Methods16

Sampling17

Data Collection19

Findings and Analysis20

Limitations22

Recommendations24

Conclusion24

References27

Netflix Challenges

Introduction

The paper discusses Netflix in terms of the current issues and problems that the company faces. The aim is to identify these issues and analyze the role Evidence Based Management EBM and strategic planning to help the company being competitive. The findings will be helpful in identifying the solutions that can add up to the attributes, skills and capabilities of Netflix. This paper will facilitate the existing researches on the strategic planning and EMB.

Executive Summary

Netflix offers various plans to target different customer segments. The company is able to attract more customers for the lower priced subscription plan and not as many for higher priced plans. This is reflected in the average monthly revenue per subscriber, which reduced from $16.34 in 2006 to $13.75 and $13.30 in 2008 and 2009, respectively. Among the main difficulties faced by organizations is insufficiency to manage knowledge. This is not just facing a reality that demands a change of attitude (Locke, 2009). The companies think that if one ignores the change, they will disappear. Netflix is subject to various legal proceedings. For instance, in September 2009, Alcatel-Lucent USA filed a complaint for patent infringement against the company in the United States District Court for the Eastern District of Texas (Locke, 2009). Netflix conducts its business by mailing the DVDs to subscribers who in turn mail back the DVDs and the shipping costs are borne by the company. The company heavily relies on US Postal Service for the shipping services. Netflix uses its proprietary technology for its operations and has tied-up with various other consumer electronics manufacturers to increase the technologies compatible with Netflix (Locke, 2009). The technology in the arena of in-home entertainment viewing changes rapidly. Besides, there are increasing internet frauds caution customers and dampen growth rates. Netflix maintains personal data on subscribers including the billing data and the company has taken stringent measures to protect their systems from frauds like hacking and ...