Number of Issues Touching On Netflix in Its Growth Process

Surprisingly, Netflix managed to deal with all this challenges in a tactful manner that saw them stay on course. This has always been done through both preventive and proactive strategies. In most cases, they managed to make prompt reactions before any of their competitors. This paper therefore focuses on a number of issues touching on Netflix in its growth process, since its inception to recently. It also includes a number of strategies that the company has always adopted to ensure that they manage to thrive in the ever changing business environment. However, it is important to note that, Netflix in its entire existence has never demonstrated a single point mantra in terms of its growth. The manner in which Netflix has managed to grow with regards to its business models and the manner in which they win customers has significantly changed with time since its inception in 1997 to date.

The company has always managed to stand agile and always proactive in all fronts. This includes the aspect of growth and their ability to deal with the criticism they have always faced. This company was founded by Marc Randolph and Reed Hasting on August, 1997 and they were based in Scoots Valley, California. This is evident from the fact that the company has made tremendous expansion in the production of television series and films. They have also come up with a new value proposition termed as Netflix original content aided by their online library of TV and films3. It is quite clear that Netflix has really undergone a massive expansion based on the fact that they managed to release 126 original series only in 2016.

This has never been achieved by any other media or channel therefore making Netflix a company of its own caliber. Currently, their target is set at achieving monopoly in the content industry. vii) Passion – It is the duty of everyone to inspire others to excellence, mind about the success of the company, always celebrate success, and be tenacious. viii) Honesty – At Netflix there is always directness and condor, everyone is non-political, backbiting is highly discouraged and everyone is encouraged to admit their mistakes. ix) Selflessness – Always strive to get the best for the company, ego is discouraged even if one has the best ides, people are encouraged to share information proactively and helping colleagues is a must. At Netflix, managers have adopted a very unique tool for employee evaluation known as the Keeper Test.

This tool is basically about the manager asking himself who among his people he/she would fight to keep in case they go to him/her and tell them they are leaving for the same kind of job at a peer company. The quote is about building the ship and it says that if one wants to build a ship, he/she should not call people to bring wood, divide the work and start giving orders, rather one should just enlighten them to crave for the vast and endless sea. Basic Financial Information The launch of Netflix saw a new dawn in the entertainment industry as a new model for the future if television was created. Netflix being one of the best internet streaming media provider that can be compared to Hulu, YouTube, Amazon Prime Instant Video and the likes of Blue-ray and DVD disc providers by means of U.

S. Postal services. The net income is usually calculated in four steps. The first step is looking at the revenue that is the total amount of money received in that fiscal year. As at March 2015, the total revenue for Netflix totaled to $ 1. 57 billion, but the operating system was at $ 97 million. This is as a result of the $ 1. The current analysis of Netflix financial statements shows that they reported a net profit of $267 million in the year 2014. This increased by $154 million compared to the net profit in 2013. However, Netflix recorded an increase in operation cost in 2014 by $174 million. This may be due to a decrease in the number of customers in 2012 after the company changed its pricing system in July 2011. Regardless of all this, the overall basic EPS for Netflix in 2014 was $ 4.

It is however important to note that only $6. 5 billion amounts to the long term as the other amounts are long-term obligations term. Ownership and Corporate Board As of 2017, 78. 25% of Netflix shares were mainly held by institutional holdings. The total number of holders of Netflix shares is 1,230. The following make up the corporate board of Netflix Inc. Reed Hastings is the chairman of the Board, president and the Chief Executive Officer. David Wells is the Chief Financial Officer, Kelly Bennett is the Chief Marketing Officer, David Hyman the General counsel and secretary, Jonathan Friedland who is the chief communications officer, Gregory Peters who is the Chief Product Officer, Theodore Sarandos who is the Chief content officer, Jay Hoag the Lead independent director, there are also two directors, Rodolphe Belmer and Susan Rice, and seven independent directors, Richard Barton, A.

George Battle, Timothy Haley, Leslie Kilgore, Ann Mather, Bradford Smith and Anne Sweeney. Horizontal and vertical integration, diversification and internationalization It is important to note that many firms usually adopt more than one business model simultaneously and markets are not only shaped by the competition that exist between the products and services but also the completion in relation to the business models (Markides and Charitou, 2004). However, it should be noted that the diversification of the business model allowed Netflix to increase its market share since it had two different means of getting money each coming with a different price, and managing to equally serve their regular customers who preferred having a physical copy of the movie or those who were not in a position to stream due to lower internet speeds at their area or weak connections that could not provide the needed high resolution and therefore managed to achieve customer satisfaction.

Apart from that, despite Netflix being new in the market, they manage to offer a wide choice compared to Blockbuster the existing provider. They also had a system for customization a “queue” in order make their products desirable and increase demand. Netflix also managed to offer a competitive pricing scheme for their regular customers hence made them manage to achieve a continuous stream of revenue and reduce seasonal trends. After 2010, Netflix reinforced it position in the market through geographical diversification as it is now present almost everywhere in the world, they have also diversified their product portfolio by bringing in TV series and apart from that they have incorporated vertical integration through producing their own original series such as the House of Cards, Daredevil and Voltron.

According to Fox, Netflix has been illegally taking away their employees. This is a result of two of its employees, Tara Flynn and Marco Waltenberg who left fox to join Netflix. In terms of labor relations, Netflix is applauded for providing the best working conditions for their employees. As a matter of fact, the employees are entitled to unlimited vacation, they have the right to make expenditure without any authorization as long as it is targeted towards the benefit of the organization, Netflix doesn’t have yearly reviews and they get very good remuneration. It is a common saying of Netflix that they hire adults that are fully formed and that they treat them as such, by giving them the freedom they need in order for them to take any risk and work out their innovation without being restricted by the process.