1. Netflix
MBAA 609
R. Nakatsu

2. Netflix vs. Blockbuster
What does a typical Netflix customer value?
How does this differ from a typical Blockbuster customer who goes to a physical storefront to rent videos?

3. Discovery-Driven, Emergent Strategies Over Time
Identify discoveries that Netflix encountered and discuss how they led to changes in Netflix’s strategies.
What was the initial business model what discovery led Netflix to abandon it?
What other discoveries led Netflix to change?

4. Achieving Operational Excellence
What did Netflix do to achieve operational excellence in the following areas?
Inventory management
Logistics/shipping
Customer service operations
How does Netflix use IT to support these operational areas?

5. Frameworks to Analyze Netflix
Porter’s Five Forces Model
Four strategies for countering the competitive forces
Sustaining vs. Disruptive Innovation

6. The Competitive Landscape Today
Is VOD a sustaining or disruptive technology
What competitive threats does Netflix face? What should Netflix do to respond to the competitive challenges?
What is Netflix doing today to stay competitive?

7. Main Takeaways
Understand the differences in the business models of Netflix and Blockbuster.
Recognize that the formulation of strategy is an evolving, and sometimes discovery-driven process.
Understand how Netflix uses IT to achieve operational excellence.
Identify the actions that Netflix can take to respond to the competitive challenges that it faces.
Practice using the frameworks discussed in class (e.g., Five Forces Model, Sustaining vs. Disruptive Innovation) to analyze the Netflix Case.