Netflix Essay -- Technology, DVD Rentals

Introduction Reed Hastings (co-founded) founded Netflix in 1997. During this time, Netflix offered DVD rentals by mail. As Netflix went public in 2002, shortly a year later their subscription reached the one million mark (Netflix Management, 2011). Recently, Netflix is recognized as one of the 50 most innovative companies, ranking number eight for â€Å"streaming itself into a $9 billion powerhouse (and crushing Blockbuster)† with 20 million subscribers (fastcompany.com, 2011). This success shows how Netflix embraced a business approach where their mission was to take the troublesome experience of everyday consumers and transform them into a business opportunity. Below illustrates how Netflix rank in other categories. Number 1 Number 2 Number 3 Number 4 Film Netflix Double Negative Real D Dreamworks Video YouTube Twitter Netflix FX Web Companies Twitter Google Zynga Netflix Learning Team A will describes and evaluate Netflix’s innovation strategy, the specific products offered to their members, and the benefits that the company brings to its customers and employees. To begin, innovation goes beyond an invention. It captures the opportunity for change, growth, and market leadership that allows leaps within the industry in multiple ways (Pearce & Robinson, 2011, p. 376). Simply stated on Merriam-Webster.com, innovation is â€Å"the introduction to something new; a new idea, method, or device† Netflix’s Innovative Overview The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regard... ...a remarkable opportunity to grow in the industry and lead as an innovative provider, Netflix has much opportunity to satisfy its customers and maintain their attention with their revolutionary business growth (Martala, 2009). Their success goes beyond their product. As stated, it is a combination of their culture of high performance drivers and fosters the â€Å"freedom and responsibility† mindset (Elliott, 2010). Because of their innovation and gradual entry into the market, Netflix has the competitive advantage to add layers of products for growth for years to come. Currently, Netflix has the competitive advantage to increase price and retain their current customer base. Even more beneficial, is the opportunity to attract additional subscribers with their new features. To end this, combining their products, price, culture, and strategic plan makes Netflix innovative.