Type your answers. Put your name on your assignment. Submit to BlackBoard by due date.
Read chapter 3 on external analysis before completing this assignment. You only need to use the information contained in the case in the textbook; you do not need to do outside or updated research.
1. Look at exhibit 2. Make one graph like the one below (or another effective style) for Netflix showing for each of the years 2007, 2009, 2010 and 2011:
a. $ Revenue (also called Sales)
b. $ Net Income/Net Loss (also called Profit or Loss)
c. Net Profit Margin % (Net Income divided by Revenue x 100. This measures how many cents they keep in profit for every dollar they collect in revenue)
* Be certain you tell us if your numbers are in dollars or Euros in thousands or millions or billions or what?
2. Think about your answer to questions from Part One of these case questions about the driving forces, KSFs and the Movie Rental Industry of the future and Netflix’s current strategy. Looking at the movie rental industry moving forward towards the future, does Netflix need a new strategy or can they modify what they are doing? Explain.
3. What are some specific things that Netflix should do differently to continue to compete successfully and earn profits in the “new” movie rental industry of today and the future?
4. If management agrees with your ideas described in question #3, what would be the top 4-5 action steps to implement your recommended plans and turn them into reality? Be clear on what you mean.
5. Prepare a 200-300 word message that you could leave on a voicemail to Netflix top management:
“Dear Netflix Management, I have evaluated your company and situation, and I would like meet with you to give you a summary of my ideas on how you can keep your company competitive in the future: Here is a summary of my recommendations:
(put your 200-300 words here).
Thank you and I look forward to discussing these ideas in more detail in person.”
General Points for all cases: Put all of these answers in clear, easy to read formats. Use paragraph titles, bullet points, white space, numbering etc., to make your answers more readable where appropriate. (Don’t just write big paragraphs with the answers hard to find, buried in the text.
Make it easy for the reader. Be careful with reading the charts in the case, some show numbers in millions, some in thousands, etc.) Good luck and please contact me with any questions or confusion.