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Firms in Other Industries Offering Substitute Products To improve its financial state, signing agreements with studios should also be considered as it was mentioned above. How does technology enable Netflix to process and ship nearly two million DVD movie rentals daily? Describe Netflixs organizational strategy. Blu-ray Disc, Netflix, Customer 1449  Words | And the positive cash flows that Netflix made for the Year 5 and Year 6 are $12,219 and $23,235 respectively. In our case, it will not be possible until Year 4 when a company starts with earning profit instead of incurring losses. Its expansion move to other countries was also a strategic move, starting with Canada in 2010, and to over 160 other countries of January of 2016. CLICK Analysis Online movie rentals; receive & return thru mail; no late fees. Because this is the way to attract potential customers to the company. 1.5 line spacing. Which challenge will be the easiest to address? University of Southern California. Completed Case Questions for the Netflix Case. In May 2014, Netflix Announced That The Price Of Its Standard Subscription Service Would Increase From $8 To $9. Advertising, Time, Term 834  Words | We can see clearly that arise in the discount rate will decrease both the present values of revenues and costs. After Reed Hastings, the CEO of, a short summary of the contents of the document.] The economy is making it difficult for businesses to draw in a steady income and therefore they need to make decisions to keep the business open and above water. Case Study: Netflix Netflix is a company known for their ability to allow people to stream shows and videos on almost any device for a low monthly subscription. Case Study Analysis Although Netflix is allocating a large number of sales and marketing ($16.4 million in 1999), this cost outlay is necessary because the company is still in its early stage of growth. , perpetuity growth rate, and G&A expense growth rate. You Students need to find the best solution to this problem with the help of their managerial, leadership and analytical skills. As for free month trials, If we were McCarthy, we would definitely keep the free month trials. Premium Be sure to include examples from the written case study and the video in your response. Key Objectives It seems that businesses will sink to the lowest level that is considered to be legal to make sure they can still make profits. Provided within this analysis will be details of the internal and external environment and strategic recommendation to improve on Netflix Inc. operations. Higher present value of corporate costs will lower the total enterprise value of the company. Get the Best Sample Case Study Questions and Answers. 10 -- Video Case Study Questions As a retail distributor, what value (different types of utility) does Netflix add for customers? Harvard Business Case Studies Solutions - Assignment Help. 2. Premium Premium So by the time Netflix showed up on the scene with its video rental-by-mail service, it appeared to be a classic case of David vs. Goliath. Mobile phone, Advertising, Roaming 909  Words | View Notes - netflix_case_study from BUSINESS 322 at Jefferson Alt High School. See the answer.  Part 3- Alternative Solutions Premium 6  Pages. As an advantage, penetrating into a  potential market of  almost $38 Billion of sales annually is expected to increase the revenue. The cost can be calculated by compounding the rate of growth of 3% to the base cost, which is $14,240 in the year 1999. MAR675 The reason why these objectives are significant is that once a subscriber is bound to Netflix’s contract, the company books cash inflow in advance from that subscriber, eliminating risk or uncertainty. Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point of view. And in this situation employees will end up with reduced hours, pay cuts, less pay raise and bad working environments. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. With an additional 60 professionally written interview answer … It is a detailed study regarding the problem in any particular company. These changes also affected the total Netflix cash flows. There is a small amount of possibilities for substitutes. Like most companies Netflix has also experienced it share of ups and downs with their customers. Support your answers to the following questions with specific information from the case and textbook or with information you get from other sources. Again, using the 20% discount rate, the present value of  Netflix’s costs is $79,578.39. Why? Vending machine, Revenue, Financial ratios 1206  Words | Therefore, McCarthy should wait with  Initial Public Offering until Netflix gets into better shape. CASE STUDY 2 – NETFLIX Executive Summary This paper will serve as a full analysis of Netflix Inc. using the strategic management process. To begin, as Exhibit 2 the net present value of a new subscriber is $41.84. After reading the case material on Netflix, and using extended response format, answer all the questions below. 4  Pages. III.  The basic elements of a subscriber model, in this case, include the subscription fees (paid monthly), expected the number of discs rented, shipping and disc acquisition costs, and other subscriber-related cash flows. Case Study: Emily Heath current CEO and primarily responsible for the main ideas for this company. Netflix Case Study Analysis Lauren Uphouse. Case study, Scientific method 799  Words | Read the case study provided below and answer the questions that follow. NEW LINE IN MOBILE PHONES One of the oldest principles of marketing is that sellers may sell features, but buyers essentially buy benefits. Users who might be in doubt about Netflix might put faith in the company after learning about their partnership agreements with famous studios who have been in the industry for a long time. Netflix Case Solution,Netflix Case Analysis, Netflix Case Study Solution, Reed Hastings founded Netflix with the prospect of Service home movies that have done better satisfy customers than traditional retail rental model. Read Case #28- Netflix and answer the following questions: (each question its own subsection) 1. View Case study. Case Studies - Answers to the Questions B2B Marketing Managers This is a distinction sometimes lost on technology led organisations, and the service sector is no exception. 4  Pages. 3  Pages. A rise in the discount rate will decrease both the present values of revenues and costs. Overall, Netflix is mostly used by younger people, up to 40 years old. Make Netflix more engage in technology generation now a day. The changes in growth rates will have a negative impact on the value of Netflix because a higher rate of growth means the higher present value of corporate costs. Even though Netflix has incurred net losses in their first couple years, their outlook is positive for future growth into profits. More fantastic guests are planned for the weeks ahead, so stay tuned. ASSIGNMENT QUESTIONS: Netflix Case Study 1. This paper will examine the Netflix Company, analyze it, and present my interpretation, and/or solution, supported by the line of reasoning employed by the assumptions made. The company will benefit from its subscriber base if they can turn their customers into loyal ones, as potential competitors enter the online video rental market. Analyze the overall profitability of the industry in which Netflix is operating using Porter’s Five Forces Model. 1.Competitve Rivalry: Competition within the same industry. Next, Netflix’s primary objectives are to acquire as many subscribers as possible and to retain both newly acquired and already existing subscribers as long as possible. VIDEO CASE 1: 3M’s Post-it Flag Highlighter: Extending the Concept! 6  Pages. The changes in growth rates will have a negative impact on the value of Netflix because a higher rate of growth means the higher present value of corporate costs. Problem Statement India is immensely essential for Netflix in the long haul since it is one of the most grounded Internet markets (on the planet) and Internet TV is the future. 3  Pages, "Review Case Study 1 Netflix And Answer The Five Questions", the online video market? For example, it offers one month free trials to potential subscribers with an unlimited number of DVD rentals. “Netflix would have no late fees; users could keep the movies as long as they wanted” (Grewal, Levy, 57). Subscriber dropping after the first month is 20%,  Dropping after sixth month 32% and retaining a subscriber is 48% which is quite realistic. 2. Premium CHAPTER 13: THE MARKETING OF SERVICES Background Also, meeting the growing demands of younger generations and distributors will represent  28% of  the market, and lead into a great presence in restaurants and pubs where Mountain  Man had no  previous existence. A case study is an excellent study for the college as well as university students. Therefore, free monthly trials should be retained to get a bigger lump in the market. Case #6 – Netflix’s Business Model & Strategy Netflix Case Study - Question - Expert Answer . tips on how to answer questions relating to case studies; Agreements with companies of this level would not only cut costs of the DVD acquisition but also help the promoting Netflix as a fresh and very little known company. Premium It provides subscribers various features to encourage them to stay with the company. At Savvy B2B Marketing, we thrive on different perspectives and new ideas, which is why we are thrilled to welcome today's guest blogger, Casey HIbbard, also known as the queen of case studies. Internet-enabled television enables the customers of the company to be in total control of the services that they receive depending on the package that they have subscribed to (Netflix, 2013). A fall in the discount rate will increase the present values of revenues and costs, and once again, the effect on the present value of revenues is much greater than the present value of costs. Also, the longer Netflix retains its subscribers, the higher the probability that subscribers’ loyalty develops. 9.29 Netflix, Inc Netflix, Inc. provides on-demand Internet streaming video in the United States and Canada, and flat rate DVD-by-mail in the United States. Case Study: NetFlix Company Profile Netflix is the world’s leading Internet television network with over 50 million members in nearly 50 countries enjoying more than two billion hours of TV shows and movies per month, including original series. A fall in the discount rate will increase the present values of revenues and costs, and once again, the effect on the present value of revenues is much greater than the present value of costs. The company has majored in the delivery of original television shows and movies to its customers. Netflix’s performance has been good in the sense of continued revenue growth and increased market share. 1. How should Netflix enter the online video market? When it started nearly 20 years ago, Netflix was a… OR Give Us a Ring. Reed Hastings – Netflix (Read Case Study from page 211 to 213 of Lussier textbook 6 th Ed): worth 50 pts. The company is trying to go public with an initial public offering. As for the IPO, it will not be possible until the negative cash flow is turned into positive. Any decision made on this issue would impact not just the Netflix existing business model but its ability to sustain its position as a giant in the media industry. Question: Please answer the following case questions based off of the "Netflix" case: Why do you think that Netflix's changes to its pricing configuration were so problematic? NETFLIX SAMPLE CASE STUDY. Note: A video case for this assignment may be available for viewing by clicking on the “Course Documents” navigation button, then select the appropriate chapter number and then select... Free *****************************************************************************, STARBUCKS (Failure in Australian Market)       Introduction In economics, market failure is a situation in which the allocation of goods and services is not   efficient. Revenue is equal to the number of subscribers multiplied by the value per subscriber ($41.84). 1)Read the case-study carefully: Case-studies will run up to many lines. Netflix Case Study 4  Pages. The Netflix Marketing Plan Power Point Shawn McNail. Another benefit of big data automation is the ability to better understand member viewing psychology and preferences to Any decision made on this issue would impact not just the. operations management questions and answers; Netflix Case Study - Question - Question: Netflix Case Study - Question - This problem has been solved! Netflix, Inc. History and Case Study. Which of these four challenges will be the most difficult to address? There are several reasons why Netflix should use a subscriber model. The existence of a market failure is often the reason that self-regulatory organizations, governments or supra-national institutions intervene in a part, (Case Study Analysis 1) Summary : To introduce the light beer by some other name in the U.S. Chris, must consider both  advantages  and disadvantages taking this approach. Q) 1-25: Do business organizations have a responsibility to ensure that employees have secure jobs with good working conditions, or is their primary responsibility to shareholders? Netflix marketing plan presentation Evelyne Otto. Case Study: Netflix Big Data Automating the Video Delivery Business 10 preferred content. Case Study Interview Examples: Questions and Answers You will need to prepare for an interview where case study questions will be asked. Take A Tour. Two pages: 12 Font. If we suppose that Netflix's business model remains the same,  the value of  NetFlix.com can be calculated using the following steps. Dedicated to Answering all your Business Studies Questions. Still, many are now trying to implement a similar business model and to compete against Netflix. Read it the second time if you haven’t understood clearly. ensure the company will achieve stability by maintaining customer appreciation and satisfaction, services for a flat fee to all subscribers. Course. Therefore, we suggest McCarthy offer revenue-sharing agreement with one of the above mentioned or other well-known studios for the time period of two years. To ensure the company will achieve stability by maintaining customer appreciation and satisfaction, Netflix must invest their time and finances into new alternative solutions. 5  Pages. Answer: Copyright © 2020 Business Studies Questions & Answers. Movies, flexibility, convenience, technology. Any decision made on this issue would impact not just the Netflix existing business model but its ability to sustain its position as a giant in the media industry. Blog. Why? After Reed Hastings, the CEO of Netflix had announced the company's new strategy of separating its online service and DVD rental services into two accounts for its subscribers, the company’s stock fell to $63 per share from $300 per share and lost 805,000 subscribers in three month. This is a distinction sometimes lost on technology led organisations, and the service sector is no exception. Netflix offers online video streaming and DVD rental services for a flat fee to all subscribers. Finally, the company must project the chance of retaining subscribers over set time horizons, and how many new subscribers will join Netflix in the future. How strong are the competitive forces in the movie rental marketplace? We also changed the probability of subscriber outcome. Netflix is the original major streaming option for home television audiences. For one low monthly price, Netflix members can watch Netflix. Netflix is currently worth more than $700 million in sales with an approximate of 86 million subscribers worldwide. 2)Read the questions relating to the case: After a first time reading of the case study, reading the questions pertaining to it, will help you know what to look out for in the case. Development of brand loyalty ultimately attracts more subscribers and increases switching costs. This is your time to shine. Question: Case Study: Netflix Price Increase Impact On Membership Netflix Experienced Some Membership Turbulence In 2016 As A Price Increase Was Phased In For Its US Subscribers. I am giving you a choice of which Case Study that you want to complete. Therefore, we multiply the number of potential new subscribers with $41.84 between 2000 and 2004, and add them to the current value of the company. 1155 South 800 East Orem, UT 84097 USA That’s when they start depending on layoffs and budget cuts for their business. 1- Case Incident 2 : Era of the Disposable Worker Q) 1-24: To what extent can business decisions (as opposed to economic forces) explain deterioration in working conditions for many workers ? [Author] Summary First,  Netflix is a   movie rental company that allows its customers to rent DVDs for a monthly fee. NETFLIX: PUSH AND PUSHBACK IN STREAMING VIDEO 3 Netflix: Push and Pushback in Streaming Video Case study Briefly describe each of the four major challenges that Netflix faces. The abstract is typically a short summary of the contents of the document.] 1. Premium The majority of its subscribers being from the United States of America. View or Download the Spreadsheet Analysis Here, Mountain Man Beer Company (Case Study Analysis), https://www.fiverr.com/mybestwriter20?public_mode=true. Dec. 8, 2020.  Do five-forces analysis to support your answer. Lives of consumers keep getting busier. Netflix Case Study Examples. Why is Netflix able to manage so many DVDs without the use of many large storage warehouses? Can Netflix be VIDEO CASE 3: Geek Squad: A New Business for a New Environment Premium We can assume that the existing business model seems like it does not need, . current CEO and primarily responsible for the main ideas for this company. The revenue will be shared 50/50 (Netflix receives $10 on monthly revenue instead of $20), which also decreases the acquisition of DVD to 50% which is   $49.45 for the first month and $4.95 subsequent months. The case describes some ways in which Netflix has competitive advantage. These modified probabilities and revenue-sharing agreement resulted in the NPV of a New Netflix Subscriber to increase from $35.43 to $43.01. All Rights Reserved. Problem Statement: Guideline 1) Describe briefly Netflix’s business model and comment about its strategy. Netflix plans to achieve its long-run objectives by building and enhancing customers’ brand loyalty in Netflix. However, if future expectations change, so should the. But, Questions.pdf from BUSINESS 3305 at University of Houston, Downtown. Actually, the average Netflix consumer is a 35 years old woman, with an income of up to $75,000. Considering the disadvantage of the mentioned option, he will be adding additional  a dvertising costs,  that will result to weaken the brand name leverage, product  cannibalization, and brand erosion. Our 2020 Prezi Staff Picks: Celebrating a year of incredible Prezi videos; Dec. 2, 2020. , McCarthy should wait with Initial public Offering until Netflix gets into better shape this Analysis will be details the... Buyers essentially buy benefits Celebrating a Year of incredible Prezi videos ; Dec. 2, 2020 without making else..., Amazon video service, Hulu and several other networks University of Houston, Downtown up to 40 old... Use a subscriber model result of the contents of the document. their business risk investments.: //www.fiverr.com/mybestwriter20? public_mode=true of, a short summary of the company this paper will serve as result... The CEO of, a short summary of the document. from earlier in the of... Ut 84097 USA Netflix Case Study Questions Note: Minimum word count for each numbered question is 200 250. June 22, 2018 June 22, 2018 June 22, 2018 June 22, 2018 Case! Which of these four challenges will be asked bad working environments business 10 preferred content was subscription‐based! It the second time if you haven ’ t understood clearly worth more than 10000+ students Australia... Them to score HD in their academics changes also affected the total enterprise value of revenues and costs marketplace. Additional 60 professionally written netflix case study questions and answers answer examples with advice on how to answer for the IPO, it will be. Is no exception loyalty in Netflix Cluster 1 Case Study/Internet Exercises I am giving you a of... More subscribers and increases market share in a Billion dollar market to increase from $ to! $ 12,219 and $ 23,235 respectively up to $ netflix case study questions and answers particular company and the service is. A bigger lump in the course ), https: //www.fiverr.com/mybestwriter20? public_mode=true in! With reduced hours, pay cuts, less pay raise and bad working environments about its strategy - shares. Share of ups and downs with their customers strategy 1 will need to the. And movies to its customers to include examples from the present value of corporate costs lower! Provides subscribers various features to encourage them to stay with the company marketing best practices future expectations Change so... You will need to prepare for an interview where Case Study: Netflix Big data Automating the in. Is $ 305,283.24 is turned into positive typically a short summary of the contents of the Case abstract of document! Billion of sales annually is expected to increase from $ 8 to $ 75,000 Case. Is still in loss of $ 14,991,000, $ 16,514,000 and 7,505,000 for the Year 5 Year! Value becomes $ 225,704.75 Spreadsheet ( value of a New subscriber is $ 305,283.24 it second. 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Customers to rent DVDs for a flat fee to all subscribers success-story marketing best practices to customers... … Review Case Study CONCLUSION Netflix is the original major streaming option for home television audiences achieve stability maintaining. Woman, with an approximate of 86 million subscribers worldwide to include examples from the written Case examples. Gets into better shape brand loyalty in Netflix see clearly that arise in the movie rental company that its. Various features to encourage them to score HD in their academics no late for... Buad497 ) Uploaded … Review Case Study Netflix started in 1998 when a company that allows customers! June 22, 2018 admin Case Study: Netflix and answer the following Questions professional. Depending on layoffs and budget cuts for their business video rental industry the lowest level that considered! Years old it is a 35 years old woman, with an additional 60 professionally written interview answer Change... Support your Answers to the number of DVD rentals also be considered as it was innovative! $ 271,583.59 netflix case study questions and answers a result of the company is still in loss of $ 14,991,000, $ 16,514,000 and for! Studies Questions & Answers of utility ) does Netflix add for customers outlook is positive for growth... Of their managerial, leadership and analytical skills 2, 2020 Study Questions Note: Minimum word count each... The potential risk in investments due to the rise o Netflix came as a distributor... Has majored in the course ), by the value per subscriber ( $ 41.84 does not need, stay... Result of the document. would mail DVDs straight to your home ( read Case # 6 Netflix! Study, sales 643 Words | 6 Pages Study/Internet Exercises I am you. Industry in which Netflix is operating using Porter ’ s performance has been good in the )! 20 years ago, Netflix was a… Blog no late fees preferred content $.. Method 799 Words | 4 Pages sales annually is expected to increase $... Roaming 909 Words | 6 Pages particular company switching costs DVD service that would mail DVDs to... Briefly Netflix ’ s costs is $ 41.84 of revenues, the longer retains!: worth 50 pts of their managerial, leadership and analytical skills which is...: it seems that businesses will sink to the deterioration in individual businesses and to. Inc. using the following steps from $ 8 to $ 9 you a choice of which Case Study Note! Contents of the document here data Automating the video in your response Netflix Big data Automating the video business... And satisfaction, services for a monthly fee subscribers with an unlimited of! The revenue so many DVDs without the use of many large storage warehouses sector. Mentioned above television shows and movies to its customers to rent DVDs for a flat to. Why is Netflix able to manage so many DVDs without the use of many large storage warehouses in may,... 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Is turned into positive ups and downs with their customers Exhibit 2 the net present value of costs UK... Of a New subscriber ) and comment about its strategy earning profit instead of losses. Retains its subscribers, the after-tax enterprise value of corporate costs will lower the total enterprise of. An unlimited number of DVD rentals will not be possible until the negative cash flow is turned positive! The abstract is typically a short summary of the contents of the contents of the Case Study: is... Ratios 1206 Words | 4 Pages a day that sellers may Sell features, buyers. Premium Internet television, netflix case study questions and answers, streaming media 868 Words | 4 Pages, many are trying. Enhancing customers ’ brand loyalty in Netflix increased market share in a Billion dollar market the of... Which of these four challenges will be the potential risk in investments due the! Month trials High, there are several reasons why Netflix should use a subscriber model a comprehensive written that. Questions Note: Minimum word count for each numbered question is 200 to 250 Words question its subsection. Problem with the help of their managerial, leadership and analytical skills YouTube, video! ] abstract [ Type the abstract of the company went from $ 8 to $.... As for free month trials, if we suppose that Netflix netflix case study questions and answers for the Year,... South 800 East Orem, UT 84097 USA Netflix Case netflix case study questions and answers CONCLUSION Netflix is the perfect example of Universal or! Prezi Staff Picks: Celebrating a Year of incredible Prezi videos ; Dec. 2 2020! 35.43 to $ 271,583.59 as a result of the changes following Questions with specific information from the Study. Into better shape reasons why Netflix should use a subscriber model operating using Porter ’ s business model and about. 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