Netflix CEO Reed Hastings has employed you as a consultant to assess the company’s overall situation and recommend a set of actions to improve the company’s future prospects.

Please prepare a report to Mr. Hastings that includes:
An evaluation of competitive forces in the movie rental industry. Do a five-forces analysis to support your answer.
A critique of the company’s strategy and its business model
An assessment of Netflix’s strengths, weaknesses, opportunities and threats
An evaluation of Netflix’s strategic and financial performance.

A set of action recommendations that clearly define the course of action Netflix should pursue.
Write-ups should be maximum 5 pages (approx. 1500 words), 10 point font, double-spaced, in addition to exhibits. Please also use exhibits and charts as necessary to support your analysis.

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The CEO of Netflix, Reed Hastings had a vision to provide home movie service which would be more enjoyable and satisfying to the customers, as opposed to the traditional rental of home movies. As this idea came in the late nineties, it was something innovative and had great potential.
The operational strategy and business model they used had affected the retail video rentals market.
In the beginning DVD’s were offered on a fee per use, then in 1999 they implemented monthly subscription services. Their subscribers account for over 44 million up to today.

Company’s strategy
Maintaining and ensuring customer loyalty is the key strategy. Netflix was selected as number one online retailer by the FGI research. They achieve this by their vast collection of retables, fast delivery services and the fact they make it incredibly easy to use.

Strategic and Financial Performance

1.Strategic Analysis
Age of consumers- there exist certain governmental limitations for the age appropriateness.
Videotape protection act- protects video rental consumers and ensures that no confidential personal information is going to be released. This is a strictly confidential policy among video rental businesses....
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