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Netflex The New Trend

Table of Contents
Company Overview 4
Issues 5
Analysis
External Analysis
Dominant Economic Feature 8
Competitive Forces – Five Forces Model 10
Driving Forces 12
Key Success Factors 14
Competitor Analysis 15
Industry Attractiveness 21
Internal (Company) Analysis
Company Strategies 21
SWOT Analysis 23
Value Chain Analysis 29
Competitive Strength Assessment 30
Strategic Issues and Obstacles 31
Alternative Courses of Action for Success 31
Recommendations 31
Implementation 32
Works Cited 36
Appendices
Corporate Officers A
Online Movie Industry Market Share B
Renting Process Flow Chart C
Growth Rate Chart D
Rental Price Comparison E
Ratio Comparisons F
S.W.O.T. Analysis G
Weighted Competitive Strength Assessment H
Unweighted Competitive Strength Assessment I
Financial Analysis J
Return on Assets / Return on Equity K
COMPANY OVERVIEW
Reed Hastings founded Netflix in 1997. He noticed that there was a demand for the ability to rent movies. With a large
customer base he figured there was no question that his company could fail. This began the online movie rental industry to a
large scale. With one company becoming successful, it wouldn’t be but a matter of time before others began to catch on and
begin to reap the benefits of someone else’s idea.
Reed Hastings has already been a success for beginning new companies. He first made a name for himself by going public
with Pure Software in 1995 (netflix.com/PressRoom). After the development of this company he began to acquire several
other companies and made Pure Software one of the 50 largest public software companies in the world by 1997; this until
they sold to Rational Software in 1997. From there Hastings moved on to other projects.
The...