Netflix Inc. 2011 Harvard Case Solution & Analysis

An Overview of Netflix

Netflix is a US based company and is known to be one of the leading provider of streaming media through internet subscription worldwide. The company is providing services not only in USA but United Kingdom, the Caribbean, Canada, Ireland and Latin America as well. The members who are registered on Netflix website can have access to  unlimited dramas, programs and movies. In addition to this, the users can watch these videos on more than 700 different devices. The services provided by Netflix include instant streamed DVD on personal computers, providing rental DVD by mail, and the last one is providing streaming with the Netflix devices that the customer can attach to their devices. Currently, the company is offering eight different subscription packages. Despite these succeeding factors, the company is facing extreme rivalry because there is a high threat of new entrants and competition is increasing daily.

Vision and Mission:

The current mission of Netflix is to be the number one worldwide entertainment service in providing a service on a monthly rate. In addition to this, another mission of the company is to allow customers to access from different devices.

Proposed vision and mission statement:

Providing most expansive selection of DVDs to appeal its customers and built success along with providing easy and fast ways of choosing movies on the internet.

The Netflix Strategy

The core strategy is to grow a large subscription business consisting of streaming and DVD by mail content. The company is able to offer subscribers a uniquely compelling selection of movies for one low monthly price through making a combination of DVD along with online streaming. The management at Netflix believes that this will create a competitive advantage for a company in comparison with other subscription services. However, this competitive advantage becomes vanished with the passage of time as more content and materials becomes accessible over the internet from competing services. In the meantime the company has further developed its other advantages like brand, distribution and the company’s proprietary merchandising platform.

The basic strategy of the company is not only based on covering two to three features of the customer base. The company’s basic strategy is to focus in multiple directions so that it can increase its customer base and attracting more and more people to subscribe. Netflix is focusing on building a selection of DVDs that is the most comprehensive in the market, and this can be done through having good relationships with its suppliers that are the video providers. Another strategy that Netflix is following is product differentiation. The company is not only focusing on the product, but on customers as well in terms of their video preferences.

External opportunities and threats:


One of the major opportunity for Netflix is in the video game market. As of now, the company is not offering any games on their sites for the customers. The company has not been tapped into the video games market that may include offering games for personal computers. The only competitor that is doing it right now is Redbox. The market for Netflix is in the growth phase, and young consumers are so much diverted towards it. Netflix would be able to increase its market share, and that in turn will increase their dominance in the market.

In addition to this, the company has growth opportunities in the international market along with mobile viewing devices like IPad, iPhone, Android Phone, PSP, Google TV and more. Moreover, the company can increase its revenue with the help of making advertisement in the mails. Other than that, Netflix can do a collaboration with celebrities to bring more original series. Further, the company can make various bids for a new drama series and programs. Netflix can also target young individuals and kids as the area is still not in use by competitors.

Moreover, Netflix can do partnership with various companies to develop Netflix programs. The company has successfully built its brand as consumers can think only about Netflix when they plan to watch films and programs at home. The company has adopted the same thing as Google and thus they can take benefit from it. The company has an opportunity in terms of pricing structure of the company as well.........................

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