How is it that Netflix and Coinstar’s Redbox have thrived in the DVD rental business and brick-and-mortar companies like Blockbuster were forced into bankruptcy protection? According to CEO and founder Reed Hastings, value is the reason. As we know from class, value is defined by customer/consumer and companies that offer value turn buyers. One great example of a company’s value turning buyers into lifelong customers is Apple. Apples success with iPhones, iTunes and Mac computers have proven that value through excellent customer experiences creates lifelong clients/customers.
Netflix does not have an “official” mission statement, but founder Reed Hastings refers to its brand promise as a “quest” and goes on to say “We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. “
Netflix however has published their nine company values, which provide further clarification about the principles that guide their employees in their daily decisions and activities. Netflix Company Values were published as...
Netflix is an online company with corporate headquarters in Los Gatos, California. Netflix was founded by Hastings who is also the CEO of the company. Netflix’s key business is online rental services in the software industry. Netflix’s software business services span various software products and services. Among these are DVD movies and several other software products. Despite disappointing results on its performance at the beginning, the innovative entrepreneur continued to modify the company while identifying and exploiting new opportunities that presented themselves. That was when the company designed and developed a website that saw it host millions of subscribers making it rake in huge profits.
Netflix was founded at a time when the video industry was largely populated by small retail outlets which were characterized by long product delivery time. The market was dominated by the giant Blockbuster Inc. Blockbuster had no real marketing strategy and customer royalty was based on impulsive buying. It had huge amount of sales with almost 100 percent success when Netflix joined the market.
Upon its entry into the market in 1997, Netflix realized that the market that was dominated by the brick-and-mortar marketing methods. The method of this company was at the time of the beginning of internet retailing. Online selling was gaining a new opportunity to a traditional way. This compelled Netflix’s to have its own website in 1998 that specialized in the use of cross platform technologies in service delivery. At this time, different pricing models were tested to increase sales volume.
Netflix was also adept at countering new entrants and developments in the market. One of this was the development of a video...