Case Analysis: Netflix and Blockbuster Market Leadership

[Name of the Institute]

Table of Contents

Introduction3

Background3

Problem Statement: The Challenges5

Analysis6

Knowledge and Evidence Based Management7

Conclusion12

References15

Case Analysis: Netflix and Blockbuster Market Leadership

Introduction

The paper discusses case of Netflix in terms of the issues and problems that the company faces. The aim is to identify these issues and analyze the role Evidence Based Management EBM and strategic planning to help the company being competitive. The findings will be helpful in identifying the solutions that can add up to the attributes, skills and capabilities of Netflix. This paper will facilitate the existing researches on the strategic planning and EMB.

Background

Netflix offers various plans to target different customer segments. The company is able to attract more customers for the lower priced subscription plan and not as many for higher priced plans. This is reflected in the average monthly revenue per subscriber, which reduced from $16.34 in 2006 to $13.75 and $13.30 in 2008 and 2009, respectively. Among the main difficulties faced by organizations is insufficiency to manage knowledge. This is not just facing a reality that demands a change of attitude (Locke, 2009). The companies think that if one ignores the change, they will disappear. Netflix is subject to various legal proceedings. For instance, in September 2009, Alcatel-Lucent USA filed a complaint for patent infringement against the company in the United States District Court for the Eastern District of Texas (Locke, 2009). Netflix conducts its business by mailing the DVDs to subscribers who in turn mail back the DVDs and the shipping costs are borne by the company. The company heavily relies on US Postal Service for the shipping services. Netflix uses its proprietary technology for its operations and has tied-up with various other consumer electronics manufacturers to increase the technologies compatible with Netflix (Locke, 2009). The technology in the arena of in-home entertainment viewing changes rapidly. Besides, there are increasing internet frauds caution customers and dampen growth rates. Netflix maintains personal data on subscribers including the billing data and the company has taken stringent measures to protect their systems from frauds like hacking and credit card fraud. However, in recent times, according to Internet Crime Complaint Centre's (IC3) statistics, internet fraud has been on a rise. Keeping in view the current situation and problems faced by Netflix, the research focuses that in the current organizational management, knowledge management becomes a core activity that aims to:

Capitalize on the knowledge and experience possessed by individuals, i.e. for the organization to take advantage of the abilities, skills and "lived" by members of the organization (Latham, 2011).

Create new knowledge within the organization by sharing and exchanging experiences between individuals to generate ideas, solve problems and produce valuable knowledge.

Exploit the knowledge of the organization possesses. Knowledge management should facilitate the optimal use of the main resource that organizations today have the knowledge. The definition of the problem is to understand that the importance of information is a task, depending on the complexity of the former, presents considerable difficulty. One can assume control such as the definition of ...