GROUP CASE PRESENTATION

INTRODUCTION

Reed Hasting, after incurring a $40 late fee by Blockbuster for returning a copy of Apollo 13 after the due date, founded Netflix in 1997. Although, at first, Netflix offered an online service very similar to that of Blockbuster (i.e. rental and late fee charges).

By early 2000, Netflix had retooled their business model to a single flat-fee service that include unlimited rentals without due dates with no other hidden fees (i.e. late fees, S&H fees, or per rental fees).

Additionally, by the end of 2010, Netflix had continued their success by providing their customers with “exceptional service” through their DVD-by-mail program, but Netflix had been surprised by the sudden jump in their customers’ subscriptions due to the introduction of devices (i.e. dvd players, gaming consoles, computers, etc.) that allowed customers to stream context directly to said device instead of having to wait for the DVD in the mail.

• How Netflix found itself at the enviable financial position for 2010 fiscal period with a sudden – and very big – increase in subscriptions?

• How Netflix used use the situational perspective of organizational behavior to develop competitive strategies to contribute to the firm’s efforts?

• How psychology, sociology, and anthropology affect elements of Netflix’s business environment?

• What role did technology play regarding Netflix’s business model?

• How Netflix’s plan ($16.99 – 3 movies per week) beat out Blockbuster’s plan ($19.99 – 3 movies per week + 5 movies per month from a “brick and mortar” store.)?

CASE 1

• Netflix’s DVD inspectors – who are they, what is their importance, how did Netflix management interact with them?

• What motivational strategies did Netflix use to increase the their employees (i.e. DVD inspectors) performance?

• What incentive did Netflix offer their employees (e.g. DVD inspectors, Senior Software Engineer, Warehouse Workers) to reduce the firm’s churn rate?

• Why would the Netflix’s inceptive plan not work for Yahoo!???

CASE 2

• Answering the question – why teamwork is not an optimal form of Netflix’s warehouse operations – when actually it could be considered possible.

• How in the world did – one of your favorite but obscure movie – end up recommended list?

• In what way does Netflix reaches out to communicate with its customers?

• Could it be said that “Reed Hastings’ actions as Netflix CEO exemplify the definition of a transformational leader?

CASE 3

• The nature & role of organizational technology at Netflix.• VOD in High Definition • RoKu TV Box • Watch It Now Feature.

• Netflix’s culture, visions, and the reinforcement of cultural behaviors.• Simply Stated “Excellence” • Live It! “Not Just Say It”!• Creating a workplace that is Intentional, Innovative,& Impactful.• Reward performers & “Cut Back the Fat” by letting go the slack!

• Forces of Change at Netflix: • People – Recruiting, Retaining, & Retraining.• Technology – Partnerships & Patents (additional partnership with Wal-Mart).• Competition – Outsourcing to bring better services & partnerships.

CASE 4

GROUP CASE PRESENTATION

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