Netflix Case Study

1368 Words3 Pages
bulb-icon

Recommended: Information overload disadvantages

1. Reading review questions.
a. What is information overload? Information overload is too much information which causes a negative effect on the decision making process. It is also described as occurring when the volume of information supply exceeds the processing capacity. What causes it? First, Personal factors relating to the individuals limitations to process information. Second, Information characteristics that are uncertain, ambiguous, complex, and intense. Third, Task and process parameters for example time pressure. Fourth, Organizational design, to illustrate brain storming with a group of individuals with drastically differing opinions and ideas can lead to information overload. Fifth, Information technology allows for information to be generated from numerous sources which can be overwhelming and bombard decision makers thus assisting in information overload. What …show more content…

How could Netflix management use Steps for Better Thinking in decision making?
1. Identifying
a. Problem. Finding competitive programing.
b. Relevant information. Competitors have access to same programs and vendors.
c. Uncertainties. Competition may gain competitive edge and Netflix loses customers.

2. Exploring
a. Biases. Embarrassment of negotiating new contract with vendors for high price for first crack at movies months prior to competition.
b. Assumptions. New customers and higher fees to offset new contract.
c. Qualitative interpretation from various points of view. (i)New contract price too high (ii) alternative options were available to be competitive. Stockholders upset wish to replace management.

3. Prioritizing
a. Ranked list of factors to consider. Very important impact of policy on profitability, market share, and share price. Somewhat important: Ways to remain competitive without signing new contract or losing customers
b. Conclusion. Management made a poor decision. Netflix should renegotiate contract to save money and offer newer subscribers a lower subscription

Show More
Related

  • Case Study: Aggie Honor Code

    1045 Words  | 3 Pages

    Knight. Though it was integrative negotiation, Petersen gained strong lead by opening formula price reduction, TexasAgs could have dampened the “first offer effect” by introducing new negotiator (Lewicki, Saunders, Barry, 2011, p. 41).

    Read More

  • Netflix Inc.

    1502 Words  | 4 Pages

    “Stock of the online DVD rental company was up more than 15% in early morning trading Thursday. Netflix increased their forecasts for both revenue and total subscribers today, trying to compete with powerhouses like Blockbuster and Wal-Mart. The increased forecast stems from a slew of new subscribers that have invested in the service after a price decrease from $21.99 to $17.99 last month. Despite the increases in revenue and subscribers however, some analysts feel that the business model is “fatally flawed” and the company may fall by the wayside due to competition from the aforementioned retail and entertainment powerhouses.” Investors Guide reported this.

    Read More

  • Against Walmart Essay

    1523 Words  | 4 Pages

    D. When a Walmart comes to town there are usually protestors to follow. And usually those protestors protest about “the environment” or “that it will destroy the community” but in reality they aren’t protesting about the environment or local businesses, they are protesting because it’s a Walmart and that’s not fair. This can be applied to any criticism the company takes. People criticize it for costing jobs because it’s a Walmart, Substandard wages? Bec...

    Read More

  • Netflix Case Analysis

    1032 Words  | 3 Pages

    A major strength that Netflix has is their ability to push for such innovation. They have reached new lengths since their start in 1997. From in-mail DVDs, to streaming media on smartphones and tablets, it’s unbelievable to witness this in the making. I think the world is a little shocked on the technological advances of Netflix. What they have done so far is spectacular and it is all because of innovation. New ideas and new strategies developed over the last fifteen years has lead Netflix to where they currently stand today. They currently have a subscriber base of over 700, 000, offering thousands of titles on many different devices. This was made possible because of their ability to innovate and strive for new technological advances. I consider Netflix a very brilliant company. Their strengths are very clear, but this isn’t to say that they have no weaknesses. Netflix has far more competitors now, than they had 15 years ago. I would say that their biggest weakness is not offering enough newer content. Some of their competitors such as Hulu, offer a ridiculous amount of new content. Netflix seems to have a large amount of titles, but majority of these titles are older titles. They need to offer newer titles more often than less. With the company advancing and technology on the rise, the younger population aren’t into the older titles. The younger population now take up a good chunk of the customer base. Netflix must

    Read More

  • Netflix Inc.

    1391 Words  | 3 Pages

    ...ble debt management by having the ability to pay its interest obligations easily. All four of these ratios show us that Netflix is in a good position to service both their long and short term debt obligations, and that they have kept their debt load low and under control.

    Read More

  • Research Persuasive Essay

    1193 Words  | 3 Pages

    B. FINAL THOUGHTS (What should the reader consider or remember? How should reader act on this issue?

    Read More

  • Bargaining Simulation 2 Personal Analysis

    1383 Words  | 3 Pages

    ...during the negotiation. Because they did not explicitly articulate their objectives to each other, the union and management did not reach a settlement that was mutually beneficial. I believe both teams prioritized “winning” over fulfilling their initial objectives. Therefore, I better understood how both teams suffered under pressure during the negotiation because they realized they could no longer rely on a zero-sum strategy. Moreover, I realized how important team cohesiveness is to the bargaining process. Both the union and management lacked basic cohesiveness among their team members and consequently exacerbated the contentious and emotional environment that they created during the negotiation. Nevertheless, under these circumstances I believe the union and management ultimately reached an adequate proposal that satisfied both sides of the bargaining table.

    Read More

  • Netflix SWOT Analysis

    1425 Words  | 3 Pages

    ?     Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead market share of online DVD rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has fewer problems in predicting revenues.

    Read More

  • Mongolian Grill Analysis

    1767 Words  | 4 Pages

    Our team has been instructed to help advise on a business case involving a restaurant, The Mongolian Grill. It’s owner, John Butkus, is contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations.

    Read More

  • Netflix

    1034 Words  | 3 Pages

    The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regard...

    Read More

  • Research Paper On Pepsi

    2038 Words  | 5 Pages

    Competitive pricing is a factor, which the firm should keep in mind all the time. The scenario is very important because there can be civil disturbance, fall in sales due to inflation, or cross-border situations. As a result, Pepsi has to stay updated with all changes and policies in order to adapt.

    Read More

  • The History of Netflix

    2022 Words  | 5 Pages

    Shih, W., Kaufman, S., & Spinola, D. (2009, April 27). Netflix. Harvard Business School Case 607-138, p. 1-15. Retrieved from http://embadu.com/sites/default/files/Netflix.pdf

    Read More

  • Netflix Market Structure

    1515 Words  | 4 Pages

    In today’s technology boom, the new waves of doing business have transformed the way people shop and live. The same happened the way people access personal entertainment. With Internet, people can stream movie online without have to go theater, or the rental movie box.

    Read More

  • Netflix Challenges

    1005 Words  | 3 Pages

    Briefly describe each of the four major challenges that Netflix faces. Which challenge will be the easiest to address? Why?

    Read More

  • Speech: Quit Smoking

    772 Words  | 2 Pages

    a. There has been a major price increase since both my parents began to smoke.

    Read More

More about Netflix Case Study

Open Document