Case study 2 - NETFLIX 16
Nova Southeastern University H. Wayne Huizenga School of Business & Entrepreneurship
MGT-5090 Entrepreneurial and Strategic Thinking
Assignment for: MGT-5090 Entrepreneurial and Strategic Thinking
Submitted to: Dr. Joel E. Rodgers
Submitted by: Frank Russell (Russ) Cook
Date of Submission: October 31, 2014
Title of Assignment: Case Study 2 - Netflix
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
Signature: Frank Russell (Russ) Cook____
Case Study 2 - Netflix
Problem Statement: Netflix faces increased market competition and suffers poor relationships with suppliers resulting in Netflix suffering from declining subscribership and declining margins.
Founded by Reed Hasting (CEO) and Marc Randolph in 1997 in Scotts Valley, California, and main headquarters located in Los Gatos, California
Business model is an internet TV company streaming and DVD/Blu Ray rentals
1999 - Launches subscription and selling service
2000 - Launches personalized movie recommendation service CineMatch
2002 - IPO with approximately 850,000 members
2007 - Netflix introduces streaming
2008 - Partners with consumer electronics to incorporate Netflix streaming
2010 - Launches internationally in Canada, Latin America, and Caribbean
2011 - In mid-July announces Qwikster a separation of online streaming services and DVD rentals resulting in devaluation of Netflix stock
2011 - July 13th stock price high of $304.79 then $55.19 on December 31, 2009
2011 - October 10, 2011 the Qwikster proposal is scrapped
2013 - Original programming is started with "House of Cards"
Company is traded under...