Netflicks case Study Example | Topics and Well Written Essays - 750 words

Netflicks - Case Study Example Netflix strategies To remain in the market as the most online subscriber of movies in United States, Netflix had to employ unique strategies since competition was high. One of strategies that the firm had emulate in order to remain an ever-growing subscriber of online movies was provision of large scope selection of DVDs titles to it customers (Emerson 79). This meant that a lot of DVDs were available to the subscribers. Secondly, the firm aimed at acquiring new content by building and maintaining mutually beneficial relationships with entertainment video providers. Thirdly, Netflix provides enjoyable movies to the subscribers and making sure the subscribers are the one to choose from a list of movies. The fourth strategy that they use to remain in the market is giving the subscribers time to watch streaming content or receiving quickly delivered DVDs via the mail. Additionally, the company spends a lot of funds in marketing to attract more customers while still making sure that thei r brands and services are available in all major markets. Ethics and social responsibility of Netflix One of the ethical issues of Netflix is to provide online streaming of videos to individuals that are not pirated (Peter 23). Netflix aim is to revolutionize the way many people rented movies and introduce streaming of movies via online. One of social responsibility that the firm had to provide to the subscribers was to make sure that movies were readily available to them (Vitorovich 36). Through maintenance of strong relationship among the employees and ensuring their safety in the work place, the firm has afforded to outdo their rivals like Blockbusters who were engaging them to stiff competition (Den and Koopman 35). In addition, Netflix focuses at shipping about 2 million DVDs on average to daily subscribers and this goal is almost to be achieved since they had been able to get 61% of company’s subscribers who were watching movies on TV episodes. Marketing and promotions Netflix uses different marketing strategies to attract subscribers including banners, text on popular sites that a lot of people were associated with like yahoo, radio stations, regional and national television. These marketing strategies are able to get 194 millions visitors annually; this was five times the number of blockbuster customers (Janko 56). Discounts to subscribers who were active in online purchase were given, this motivated the subscribers. Netflix Company was able to advertise programs to studios and in return they got cash considerations from the studios (Chavez 70). Free movies were offered during advertisement to make sure that the brands were accepted in the market. Advertisement expenses were $205.9 million in 2009, $181.4 million in 2008, and $207.9 million in 2007. Due to the company culture of marketing and promotions, it has emerged as a top performer in the online marketing (Kolb 45). Finance and accounting Netflix revenues grew from $500 millions in 2004 to 1.2 billions. Later in 2010, the figure rose to $2.1 billions comparing with their rivals who showed sharp decline of$569 million loss in revenue (Stelter 61). In 2010, Netflix boards of directors authorized expenditure of up to $300 millions to purchase share of common stock. Netflix recorded a profit of US $6.5 millions and revenue of $272 millions Human resource of Netflix Netflix is run by a group of