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Case Summary Reed Hastings founded Netflix with a vision to provide a home movie

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Case Summary
Reed Hastings founded Netflix with a vision to provide a home movie service that would do a better job satisfying customers than the traditional retail rental model. But as it encountered challenges it underwent several major strategy shifts, ultimately developing a business model and an operational strategy that were highly disruptive to retail video rental chains. The combination of a large national inventory, a recommendation system that drove viewership across the broad catalog, and a large customer base made Netflix a force to be reckoned with, especially as a distribution channel for lower-profile and independent films. Blockbuster, the nation’s largest retail video rental firm, was initially slow to respond, but ultimately rolled out a hybrid retail/online response in the form of Blockbuster Online. Aggressive pricing pulled in subscribers, but at a price to both it and Netflix. But a new challenge was on the horizon: video-on-demand. How should Netflix respond?
The complete Netflix case study is available through the Harvard Business Review coursepack.
Understand the competitive advantages and disadvantages of online versus brick and mortar commerce
Identify key attributes of the online business model versus traditional business
List the advantages and disadvantages of provided ‘pipes’ versus ‘content’
Identify key technologies that contribute to the success of an online business
Complete an informational report presentation (approximately 10 minute VoiceThread (Links to an external site.) video) addressing the following questions:
Describe the issues presented by the week’s case
List competitors of the featured company in the case study and describe the advantages and disadvantages of each
Analyze the decision to split the company, addressing whether or not you agree with the decision. Justify your answer with fact from the case or other readings.
Evaluate how the decision was executed. What would you have done differently?
Describe current actions that the company is taking in the marketplace and evaluate the success/failure of these actions
Submission Requirements
Introduction slide (where you introduce yourself and your presentation topic)
One slide for each of the questions (each slide must draw on appropriate support, data, and information from the case study, readings, or other sources), and a
Conclusion slide (where you can provide any additional commentary relating to this case study)
Include a slide that lists the contribution of each group member (no need to provide any commentary; just include with the presentation)
Post your completed VoiceThread to the IST 816 Course Area on the Penn State VoiceThread site
One group member should submit the VoiceThread link to your video to the following two locations:
This assignment (Use Submit Assignment button)
L02 Discussion – Netflix (note your Group Name)
During the next week, all students must review at least two other group presentations in the L02: Discussion – Netflix.

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