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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____

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Case Study 2 - Netflix

Executive Summary

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...