NETW 583 Week 7 Final Course Project

NETW583 Strategic Management of Technology Course Project Professor M. BulejeKeller Graduate School of Management Mario Smith Section I: Strategy Company Introduction Netflix is a subscription-based streaming service founded by Reed Hastings and Marc Randolph in Scotts Valley, California. Customers can watch Television shows and movies without commercial interruptions on an internet-connected device. It was launched on August 29, 1997. Initially Netflix sold and rented DVD’s by mail. About a year in their focus shifted solely to rentals, eliminating sales. Netflix became a publicly traded company on May 29, 2002 with a price per share of $15, today the price per share is more than $250. Mission Statement At Netflix, we want to entertain the world. Whatever your taste, and no matter where you live, we give you access to best-in-class TV series, documentaries, feature films and mobile games. Our members control what they want to watch, when they want it, with no ads, in one simple subscription. The streaming service competition is fierce with many options to choose from, each offering its own unique user experience, content library, including original and exclusive content. For this reason it is imperative that Netflix’s maintain its competitive advantage by way of technological innovation to become the top streaming service. Section II: Core Competencies Technological Innovation The rapid growth of the Netflix streaming platform is driven primarily by its focus on continuous technological innovation. High quality streaming content is what attracts consumers to the streaming platform. This in turn add to the satisfaction of user experience. Another technological innovation is the recommendation system, which helps users select content that aligns with their content preferences based on what their historical viewing history. Netflix invests heavily in research and development as R&D is the crux of technological innovation and that technological innovation gives Netflix a competitive advantage over other streaming platforms. Brand Equity Superb marketing and innovative and user oriented image are the hallmark of the Netflix brand equity. Netflix has strong publicity and word of mouth driven by stronger brand equity. User perception of the brand has a long term effect on demand and sales globally. With continued focus on providing diverse streaming content choices to people from various regions across the world, the continued addition of quality and original content the brand equity of Netflix will become stronger over time. There are several other streaming platforms in the market that offer similar services and content but, Netflix has proved itself more dynamic and customer-oriented in terms of understanding their expectations. Greater focus on user experience has resulted in higher credibility and reliability, contributing to stronger brand equity. Strong brand equity translates into competitive advantage and a profitable bottom line. Large user base Having a large user base, as is the case with Netflix can be source of competitive advantage. In recent years Netflix has seen its user base skyrocket. In the second quarter of 2020, its net number of memberships was approximately 193 million and was projected to surpass 200 million by the third