Signature Assignment: Strategic Plan: Implementation Plan, Strategic Controls, and Contingency Plan Analysis BUS/475 October 23, 2017 Robert Stokes
Strategic Plan Part I: Proposal of a New Division Introduction Netflix was founded by Reed Hastings and Marc Randolph in 1997. Initially the company specialized in DVD sales and rentals. Fast-forward ten years later and Netflix is pioneering & dominating the entertainment internet streaming service industry, while still maintaining their DVD by mail service. According to “Netflix: Overview” (n.d.), “Netflix is the world’s leading internet entertainment service with 104 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films” (). Although Netflix is the world’s leading entertainment service provider. It is paramount that they always strive to remain dominant, innovative, and provide quality service for their consumers. My new product proposal would build on the company’s vision, mission, and values. As well as offer a new innovative service that would bring in additional consumers and revenue. New Product
Netflix founders, Reed Hasting & Marc Randolph made it a lot easier for consumers to rent DVD’s. By sending them right to their door steps via mail. Prior to Hasting and Randolph’s invention of Netflix. Customers who wanted to watch or rent movies had to drive to a video rental store, stand in long lines, and then be told the movies they wanted were out. In addition, there were ridiculous late fees associated with late returns. Netflix capitalized on theses flaws and made it easier for consumers to get what they wanted, without any hassle or ridiculous fees. That is why it became one of the most successful movie streaming businesses and on top of the others (Wang, Ucilia, 2014). Netflix’s new innovative service and advancing technology, are some of the factors that are said to be linked to the subsequent bankruptcies of mega video rental stores such as: Blockbuster and Hollywood Videos. This is ironic because, Hasting is often quoted as saying that he started Netflix after being fined $40 for a late fee at Blockbuster (O’Neil, 2011). My new product would again re-invent how customers would watch and stream new theater movies. My new product proposal would be ‘Netflix Home Theater’. This new product would allow our customers to stream new theater movies from the comfort of their own homes at one low monthly affordable price. This product is customer focused because there are so many consumers that enjoy watching new theater movies. This can be proven by the fact that just under 1.2 billion movie tickets were sold in the U.S alone in 2016 ("Film and Movie Industry Statistics & Facts", n.d.). Although Netflix does not have an official mission statement. CEO Reed Hastings has laid out a clear vision for the future of Netflix, a Promise, and nine Values. Hastings vision entails: becoming the best global entertainment service, licensing entertainment content around the world, creating accessible markets to film makers, and helping content creators around the world find an audience (Weinberger, 2016). The mission statement for
Netflix Home Theater would build on these goals for the future, and give customers an idea of what to expect from our services. Our mission statement would be, “Providing subscribers with affordable, quality streaming services for new theater movies globally”. Customer Needs & Competitive Advantages Netflix Home Theater would focus on customer needs in many ways. However, our two main focuses are price and convenience. Our number one focus would be our affordability. This is important because it will ultimately determine how many consumers will use our product and the overall appeal of Netflix Home Theater. Since our main goal is to appeal to customers based on the cost of associated with going to see a movie in a theater. Our new product would capitalize on movie goers, and gain popularity quick, due to its convenience and affordable price. In addition, Netflix Home Theater would appeal to consumers who potentially can’t enjoy theater movies due to: children, special needs, cost, or any other reason. This is where convenience comes into play. Netflix Home Theater would be able to be accessed on any device that supports Netflix, and has internet. This makes the possibilities and accessibility of Netflix Home Theater almost endless. Although Netflix already has an enormous competitive advantage over its competitors, by having over 100 million subscribers worldwide. Netflix Home Theater would just help solidify the entertainment streaming giant as the best media service provider. Netflix Home Theater would allow subscribers to stream new theater movies on any device that supports Netflix, at their convenience, and at a low monthly price of $10.99. With the average price of movie tickets and snacks. Movie goers will spend well over $20 per movie. But witch Netflix Theater subscribers will save time and most importantly money.
Vision & Business Model My vision for Netflix Home Theater is to re-invent the way people watch new theater movies. With Netflix Home Theater, I hope to alleviate all the issues associated with going to see movies in expensive movie theaters. My new division looks to address two main issues associated with going to the movies. These two issues are: cost and convenience. Although these are two main factors Netflix Home Theater is derived from. Netflix Home Theater also alleviates other issues such as: finding seats, waiting in long lines, finding theaters that are playing the movies you want to see, etc. The new division of Netflix will specialize in new movie theater content. Since this is an untapped market. Netflix will again be a pioneer and set the standards for competitors to follow. The new division will charge prices that are slightly higher than the current price for regular Netflix. Since Netflix has subscribers worldwide. The new division will acquire films from various foreign and domestic distributors and then make the accessible to consumers. Due to accessibility of different movies and films in foreign countries. Netflix stands to gain a large consumer base to offer its new services to, which could lead to huge earning potential. Aligning Vision, Mission, and Values Netflix CEO Reed Hastings has a Vision, a Promise, and nine values in place of an official mission statement. Hasting’s vision is: becoming the best global entertainment service, licensing entertainment content around the world, creating accessible markets to film makers, and helping content creators around the world find an audience. Netflix’s promise is: “We promise our customers stellar service, our suppliers, a valuable partner, our investors the prospects of sustainable growth, and our employees the allure of huge impact”. Netflix’s nine