Case Analysis: Netflix, Firm's strategy and implementation

Case Analysis of Netflix
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Case Analysis: Netflix
Netflix’s growth started in the year 2010 when the movie enthusiasts started using it fully when it was 18 months old. It led to doubling of domestic revenue of Netflix from 12.3 million to 24.6 million. Quarterly revenue increased too from $445 million to $770 million and quarterly operating income climbed from $53Million to $125millions. The changes encouraged the company to push the stock price up full time and became widely internet usage. The firm expanded globally for renting movies and hosting TV shows CITATION Art12 \l 1033 (Arthur, 2012).
Key problems
The organization had needed to expand in the business. It therefore initiated strategies for growth of which mistakes were made that pulled down the organization to a great extent. Strategies in pricing were also made increasing monthly subscriptions price by 60%. The changes increased the cost of production in terms of renewing the license which forced the Starz’s content to be removed from library of subscribers due to failure to subscribe. The CEO put the blame of pricing as a matter of miscommunication and his suggestion to replace DVDs with Qwikster made the investors angrier, worsening the matter and plunged the stock from $208millions to $115 million. To curb these problems, Netflix was expanded globally with the intention of making more profits, the diversity in market did not hit the expectations of the clients and also lack of concentration on domestic investments resulted in decrease in profits. It was therefore a wrong move by the organization CITATION Art12 \l 1033 (Arthur, 2012).
Firm’s strategy and implementation
The organization under the leadership of Reed Hasting made several strategies to ensure that the organization grows. The organization started with streaming option strategy which was launched on January 2007 with instant capability of 2000 tiles on personal computers. The organization further made a target to have a comprehensive library of movies and TV Episodes. Its intention regarding this matter was to offer subscribers with a large and diverse selection of DVD titles. Due to this, the firm realized growth, since 2005 to 2012 a change from 55,000 titles to 120,000 titles CITATION Mic12 \l 1033 (Michael, 2012).<...