Netflix

Case Solution for Netflix: The Public Relations Box Office Flop

Complete Case details are given below :
Case Name :      Netflix: The Public Relations Box Office Flop
Authors :           Jana Seijts, Paul Bigus
Source :             Ivey Publishing
Case ID :            W12918
Discipline :        Organizational Behavior
Case Length :    12 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
On the morning of September 19, 2011, the chief executive officer (CEO) of the online movie provider Netflix Incorporated (Netflix) became witness to growing public discontent and media criticism. The previous evening the CEO had announced on the company blog that Netflix would be splitting into two separate entities. With the proposed change, the Netflix DVD-by-mail service would be spun-out and renamed Qwikster. The move would leave the Netflix brand to focus on offering online streamed entertainment. This was not the first time Netflix had caused large scale consumer frustration, as a few months earlier in July 2011, the company had announced it would be increasing rates as much as 60 per cent. The result was a loss of over one million Netflix subscribers by September 2011, representing the first time the company had ever lost subscribers from one quarter to the next. Although the split into two separate entities could be seen as a good business strategy, Netflix did not follow through with a well-developed communication plan. Moving forward, both Netflix and Qwikster had become symbolic of a bad two-headed monster movie, with Netflix management in desperate need to develop better communications with disgruntled consumers, or risk losing additional subscribers and lucrative profits to a number of growing competitors.
 
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Case Solution for Netflix Inc.: Streaming Away from DVDs

Complete Case details are given below :
Case Name :      Netflix Inc.: Streaming Away from DVDs
Authors :           Luis Alfonso Dau, David T.A. Wesley
Source :             Ivey Publishing
Case ID :            W12850
Discipline :        General Management
Case Length :    10 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
This case examines two of the leading video rental services in the United States, Blockbuster and Netflix, and how each adapted to changing technology and market forces. At the end of the case, Blockbuster has declared bankruptcy and Netflix has seen its first decline in subscribers since its founding in 1997. Netflix also faces a number of new threats, including illegal file sharing, rental kiosks and new low cost video-on-demand (VOD) services. Netflix responds to these threats by announcing that it will split the company in two. Netflix will focus exclusively on streaming content, while a new subsidiary called Qwikster will be restricted to providing DVDs by mail. Customers overwhelmingly react negatively to the announcement, and Netflix’s stock price plunges by more than 50 per cent.
 
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