2. What are we covering today?
History of Netflix
How does Netflix make money?
Netflix and Porter’s Competitive Forces
History of facebook
facebook network effects
Privacy issues facing
facebook
facebook and Tencent
Why are companies now boycotting facebook?
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4. Group Exercise: Blockbuster and Netflix
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Blockbuster had the chance to invest in Netflix, but
it declined this opportunity
Within your groups review the potential reasons for
Blockbuster’s decision.
Other than investing in Netflix, what could they
have done
instead?
Present your
findings.
8. Group Exercise: Netflix
You were hired as a
consultant to set up the
future strategy for Netflix
You decided to use
Porter’s five forces to
conduct your analysis
Break into groups and
identify two things:
o The forces at play related to Netflix
o What Netflix needs to do related to each of these forces
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11. Facebook: Growth by Acquisition
Total: 72 acquisitions
Top Acquisitions over $40M:
o 2009: FriendFeed - $49M
o 2010: Friendster - $40M
o 2011: Snaptu - $70M
o 2012: Instagram - $1B
o 2012: Facetime - $100M
o 2013: Atlas - $100M
o 2013: Parse - $85M
o 2014: Whatsapp - $19B
o 2014: Oculus - $2B
o 2014: Liverail - $500M
o 2015: Pebbles - $60M
o 2018: RedKix - $100M
o 2019: Playgiga - $70M
The risk is the possibility of breaking out the acquisitions
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16. Open Book Questions
This is a group assignment
You need to write a report that
discusses the competitive
position of facebook.
Start by identifying the different
operating divisions of the
company
For each division of the company, apply the Porter
competitive forces model, and for each of the five forces,
determine examples of the these forces and the actions
that facebook should take to protect itself against these
forces
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