Instruction
Netflix case study
The case note is to be typed double-spaced, and five pages long (not shorter, not longer). You need not use a cover for the case note. Please do not summarize the case: assume that I am familiar with the case and just answer the questions below. You should not retype the questions in your case note. Please answer all parts of the question below in the order in which they are asked. In addition to a careful reading of the case, you will need to read and understand the material in Chapter Three to complete this assignment. Take care with spelling, grammar, and proof-reading. An excessive number of spelling and grammar mistakes will result in a loss of up to two points from the case note grade.
What business is Netflix in? Why do you say so? Using Porters five-forces model, analyze the industry in which Netflix competes. Identify each of the five forces and state whether it is strong or weak in this industry and why. Could small competitors find a place in this industry, or is it necessary to be big to have any chance at profit? Explain your answer. Netflix decided in 2011 to divide itself into two businesses. Many bad consequences followed. Was this decision to divide into two businesses a case of bad strategy, or good strategy badly executed? Explain your answer. In the memo explaining the proposed changes (Exhibit 1) the CEO of Netflix used the words I or my eleven times in the first six paragraphs. Was this a good way to explain the change in strategy (by personalizing it to this degree) or not? Explain. What advice would you give to Netflix on the questions of whether and how fast to pursue international expansion as part of their strategy?