Analysising Netflix's Strategy

Zana Majed Sadq

Abstract: Netflix, a subscription -based online movie rental service was founded in 1997 by Reed Hastings. Netflix is an internet portal through which subscribers can rent movies in DVD format and then have these DVDs delivered to them directly to their homes. Originally Netflix was based in the United States of America and it utilised the U. S. Postal service to deliver DVDs to its subscribers. By the end of 2006, Netflix had a total of 44 distribution centres across the United States which made it easier and faster to deliver its DVDs to a large number of its subscribers. Netflix, having a subscriber base of 6.6 million subscribers could ensure delivery of its DVDs to more than 90 % of its subscribers within a single business day and by the end of 2006, Netflix had achieved revenues of nearly $1billion.

Keywords: Netflix, Strategic issues, PEST Analysis, Porters Five Forces Analysis