As a result of this rapid success, Netflix began to create alliances with movie studies, such as Warner Home Video, that provided both partners opportunities for sharing revenues. As a result of these agreements, the company released its IPO for shareholders in 2002, as a company that could sustain growth and remain profitable long-term. With new capital availability as a result of having publicly traded stock, Netflix was now in a substantially sound financial business that provided opportunities to expand the business model. Today, Netflix provides customers with a flat rate membership of $7.99 USD per month, with the ability to rent DVDs and view streaming video content. Ease and convenience of using credit cards via Internet sales channels now gives Netflix immediate revenues that improves services and expand the vastness of its online movie libraries.
This report explores the strategic position of Netflix, offering a full strategic appraisal of the company between the years 2010 and 2014. The investigation consists of analyses of the firm’s competitive strategy, performs an internal and external market analysis, determines the key strategic issues that have faced the company, strategic growth options for the company, and a description of the most relevant and viable strategies for improving the market performance of the firm long-term.
Netflix operates in four key markets: DVD by mail, streaming video content subscriptions, original television programming, and video game rentals. The firm’s original market entry strategy for DVDs-through-mail was as a pioneer in this service concept in the United States, as a differentiator, giving the company a consumer-perceived uniqueness for providing convenience without having to visit a bricks-and-mortar rental company. Kalyanaram and Gurumurthy (2008) iterate the pioneers have tremendous