Netflix Presentation Final


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Netflix Presentation Final

  1. 1. NETFLIX Lakshimi Ramamurthi   Pao-Tien Ho
  2. 2. Agenda History  Company Overview  Mission and Vision  Netflix: Mind Map  Technology Tools  How does it work  Current State of Technology  IT Business Alignment  Technology Strategy  Analysis- Lock in, SWOT, Porters  Recommendation and Conclusion 
  3. 3. History 1997:, Inc. California by Reed Hasting and  Marc Randolph. 1998: Begins offering DVD rentals and sales  1999: Group Arnault invests $30 million in the firm  2000: Revenue sharing deals Warner Brothers and  Columbia film studios 2001: Partnership with Best Buy  2002: Publically listed: Netflix, Inc.  2003: Subscribers top 1,000,000  2007: Billionth DVD Delivery  2009: Customer Satisfaction Index score -86  Current:55 million discs, ships 1.9 million DVDs to  customers each day
  4. 4. Company Overview Headquarters: Los Gatos   Founded: 1997  CEO: Reed Hastings ,founder  Employees: 2670 FTE  Films: 100,000 titles  Distribution centers: 55  Subscribers: 10 million  Revenue: US$ 1.365 billion (2008)
  5. 5. Mission and Vision Mission:  Our appeal and success are built on providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery.  Vision: Keeping the LEADING position in the industry
  6. 6. Netflix: Mind Map Faster internet? Competitive Customers want the best New Tec’s service & at a low cost? Something that would How can we use the new fit With our Tech to achieve that? strategy..!!
  7. 7. Technology Tools Game Console Vizio/ Roku X Box Streaming 360 Blue Tivo Ray DVR Samsung/ LG disc
  8. 8. How does it work? Network Users Content
  9. 9. Technology Strategy Why has Netflix survived when so many other Internet startups have failed?  Timing of entry - DVD adopters on Usenet groups First Mover – Brand Loyalty and Technological  Leadership Dominant Design- Roku Digital Video Player  Strategic Partners – Netflix partner’s with the  movie industry, the consumer-electronics industry, and retailers. Roku set-top
  10. 10. Current State Technology • Measuring customer response • Delivery and presentation of personalized Customer information Analysis • Matchmaking • Building Customer Profiles Data Mining • Collecting Customer Data • Securing the Customer Data Info mediation
  11. 11. IT/Business Alignment Technology • Keeping the Alignment IT needs and • Great website, fair /Business resources pricing and easy LEADING Goals access to position in the information industry • Using the latest • Providing the technology to Business BEST online enhance the Market needs and website features rental movie Needs and resources experience resources
  12. 12. Lock In cycle Brand Selection No.1 Brand, Online streaming, rental by mail Lock in consistent and high- Sampling quality user Free Trial, Gift Card experience at no additional Charges Entrenchment: Streaming movies, Strategic partners, internet community
  13. 13. Growth-Share Matrix Relative Market Share High Low High Star Question Mark Netflix Market Growth Rate Cash cows Dogs Low
  14. 14. Competitive Analysis #1 #2 #3 #4 #5 Excellent Very Good Good Fair Netflix Blockbuster DVD Avenue Cafedvd EHit Poor Ratings Inventory Membership Features Movie Arrival Time Movie Information Overall Rating *Source -
  15. 15. Porter's Five Forces Threat of Strong -> Potential Medium Entrants Major Players Strong -> M&A Stronger Demand < Supply No switching cost Industry Suppliers Buyers Power Competition Power Strong -> Stronger Weak -> Weak Rapidly growth Internet Channel market Transform to Medium - Online service >Stronger Download Threat of Service, IPTV Substitutes
  16. 16. SWOT Analysis Strong Brand identity  Experience  Lead market share of online   Strong suppliers rentals W  Volatility in performance S Low fixed costs   Studios define release Free DVD Shipping and  Postage Worlds largest selection of  DVDs Over 90% of DVD's are  received by customers within one day of ordering Strong website
  17. 17. SWOT Analysis Studios may form Pricing segmentation alliances (i.e., different plans) with bigger players Digital delivery Loss of reputation T Other types of rentals O Competition from VHS (Video games,Books) Risk of Malware Global Markets Growth rate changes Rapid advancement in technology
  18. 18. Recommendation  Innovate and enrich customer experience.  Increase the prominence of new releases and work with music labels.  Marketing Initiatives  Capture New Customers and New Markets
  19. 19. Q&A
  20. 20. Thank You!